The best 3D printing stock to buy in 2024 is Desktop Metal Inc. (DM), according to our analysis of the industry trends, financial performance, and growth potential. Desktop Metal is a leading provider of metal 3D printing solutions for various industries, such as aerospace, automotive, medical, and consumer goods. The company has a strong competitive advantage in the 3D printing market, as it offers innovative technologies, such as binder jetting and single pass jetting, that enable faster, cheaper, and higher-quality metal 3D printing than traditional methods. Desktop Metal also has a diversified portfolio of products and services, ranging from desktop 3D printers for prototyping and low-volume production, to industrial 3D printers for mass production, to cloud-based software and on-demand 3D printing services. The company has a loyal customer base, including blue-chip companies like Ford, BMW, Google, and Lockheed Martin, as well as thousands of small and medium-sized businesses.
There are several reasons why we believe Desktop Metal is the best 3D printing stock to invest in 2024. Here are some of them:
Strong revenue growth and improving margins: Desktop Metal reported a revenue of $162.5 million in 2023, up 146% year-over-year, driven by robust demand for its products and services across all segments. The company also improved its gross margin from 18% in 2022 to 27% in 2023, reflecting its operational efficiency and economies of scale. Desktop Metal expects to generate a revenue of $245 million in 2024, representing a 51% growth rate, and achieve a positive EBITDA by the end of the year.
Strategic acquisitions and partnerships: Desktop Metal has been actively expanding its capabilities and reach through strategic acquisitions and partnerships. In 2023, the company acquired EnvisionTEC, a leader in photopolymer 3D printing, for $300 million, adding a complementary technology and a strong presence in the dental and jewelry markets. The company also acquired Aerosint, a developer of selective powder deposition technology, for $25 million, enhancing its ability to print multi-material parts. Additionally, Desktop Metal partnered with Xometry, a leading online marketplace for custom manufacturing, to offer its metal 3D printing services to Xometry’s network of over 30,000 customers.
Innovation and differentiation: Desktop Metal is at the forefront of innovation and differentiation in the 3D printing industry, as it continues to develop and launch new products and technologies that address the needs and challenges of various markets. For instance, in 2023, the company introduced the Studio System 2, a simplified and streamlined version of its flagship desktop metal 3D printer, that eliminates the need for solvents and debinding, and reduces the cost and time of post-processing. The company also launched the P-1, a new industrial metal 3D printer that leverages its proprietary single pass jetting technology, which can print metal parts up to 100 times faster than laser-based systems. Furthermore, the company announced the development of the Forust process, a novel method of 3D printing wood parts from cellulose and lignin, creating a new category of sustainable and biodegradable materials.
How Desktop Metal compares to other 3D printing stocks
Desktop Metal is not the only 3D printing stock that offers attractive investment opportunities in 2024. There are several other players in the industry that have strong growth prospects, such as:
Stratasys Ltd. (SSYS): Stratasys is one of the pioneers and leaders in the 3D printing industry, with a broad portfolio of polymer 3D printing technologies, such as FDM, PolyJet, and SLA. The company serves a wide range of industries, such as aerospace, automotive, education, healthcare, and consumer products. Stratasys reported a revenue of $561 million in 2023, up 12% year-over-year, and a positive EBITDA of $34 million, up 79% year-over-year. The company expects to grow its revenue by 10% to 15% in 2024, and achieve a double-digit EBITDA margin. Stratasys also made several strategic moves in 2023, such as acquiring RPS, a provider of industrial stereolithography 3D printers, and partnering with DyeMansion, a leader in post-processing solutions for 3D printed parts.
Nano Dimension Ltd. (NNDM): Nano Dimension is a unique player in the 3D printing industry, as it focuses on 3D printing of electronics, such as printed circuit boards, antennas, sensors, and capacitors. The company’s flagship product is the DragonFly LDM, a multi-material 3D printer that can print both conductive and dielectric materials in a single process, enabling the creation of complex and functional electronic devices. Nano Dimension reported a revenue of $11.5 million in 2023, up 287% year-over-year, and a negative EBITDA of $23.7 million, down 42% year-over-year. The company expects to grow its revenue by 300% to 400% in 2024, and achieve a positive EBITDA by the end of the year. Nano Dimension also made several strategic moves in 2023, such as acquiring DeepCube, a developer of machine learning and artificial intelligence solutions, and partnering with Hensoldt, a leading provider of defense and security electronics.
3D printing is a rapidly growing and evolving industry, with a huge potential to disrupt and transform various sectors of the economy. Among the many 3D printing stocks available in the market, we believe that Desktop Metal is the best one to buy in 2024, as it offers a compelling value proposition, a strong competitive advantage, and a high growth potential. Desktop Metal is well-positioned to capitalize on the increasing demand for metal 3D printing, as well as to explore new opportunities in emerging markets, such as wood 3D printing. Therefore, we recommend Desktop Metal as the best 3D printing stock to invest in 2024.
