We recently compiled a list of the 10 Best 3D Printing Stocks To Buy Right Now. In this article, we are going to take a look at where Proto Labs, Inc. (NYSE:PRLB) stands against the other 3D printing stocks to buy right now.
When 3D printing first became mainstream, it was rumored that the technology could bring about the next industrial revolution. The technology is slowly seeping into every industry. Large energy companies now use 3D printing to develop engineering designs, replacement parts, and prototypes. Only recently, Reuters reported the launch of a 3D-printed neighborhood and hotel in Texas, United States. To this, experts are wondering whether artificial intelligence and 3D printing technology can fix the global housing crisis.
Artificial Intelligence & 3D Printing: A Groundbreaking Intervention
According to a report by Forbes, the 3D printing industry was valued at $14.7 billion in 2023 and is expected to reach $58 billion by 2032. The key challenge hindering the growth of 3D printing is its cost inefficiency, especially for metal 3D printing. However, a combination of artificial intelligence and 3D printing may ramp up the use of 3D printing globally. There are a few companies tirelessly working on bridging the gaps in 3D printing using artificial intelligence. Let’s take a look at what they offer.
Printipal.io is one such example. The company uses artificial intelligence to monitor the printing process so humans do not have to do it themselves. The technology identifies errors and sits through the entire printing process while workers sit back and relax. Some of its features include defect detection, health checks, automation, and remote management. The tool helps minimize waste and improves efficiency significantly.
On the other hand, 1000 Kelvin, a developer of AI solutions for 3D printing, launched AMAIZE in the last quarter of 2023. AMAIZE is a fully AI-powered 3D printing software that is designed to automate the correction of issues and improve accuracy, eliminating the need for multiple revisions and element simulations. The CEO of 1000 Kelvin stresses the need for sustainable solutions to 3D printing. Improving the efficiency of the 3D printing industry can thoroughly optimize the global manufacturing and production sector.
Cathie Wood’s ARK offers a 3D printing ETF but this ETF hasn’t returned anything over the last 5 years and underperformed the market by a large margin. It also gained close to 10% over the last 12 months but still underperformed the market by double digits. You can check out 10 Worst Cathie Wood Stocks to Buy here. 3D stocks as a group haven’t been performing well but some of these stocks may outperform the rest and keep up with the rest of the market.
Now that we have studied the 3D printing industry’s outlook and how the inclusion of AI can improve efficacy, let’s take a look at some pioneers of 3D printing technology.
Our Methodology
To come up with the 10 best 3D printing stocks to buy right now, we went over multiple ETFs, our own rankings, and similar rankings on the internet. We then examined the hedge fund sentiment of each stock and picked the most popular ones. Our list is in ascending order of the number of hedge fund holders, as of Q2 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Pixabay/Public Domain
Proto Labs, Inc. (NYSE:PRLB)
Number of Hedge Fund Holders: 22
Proto Labs, Inc. (NYSE:PRLB) is a leading 3D printing company that provides rapid manufacturing of low-volume 3D-printed custom parts for prototyping and short-term production. The company has been providing additive manufacturing services for the past 25 years and is home to more than 120 3D printers.
The company provides on-demand 3D printing for rapid prototyping. Proto Labs, Inc. (NYSE:PRLB) is known for its notoriously fast production, which could be as fast as one day. The emerging leader in 3D printing allows people to use its online 3D printing service and choose from its six printing technologies.
The company is expanding its ecosystem by partnering with big names from across the globe. Harley Davidson partnered with Protolabs to manufacture high-quality parts for their vehicles. Similarly, NASA partnered with the 3D printing company to develop a special part. The part was delivered in only 36 hours and the design was presented at the PowerSource Global Summit. Proto Labs, Inc. (NYSE:PRLB) has leveraged similar partnerships with Nokia, Aura, PepsiCo, and Whoop Inc.
Proto Labs, Inc. (NYSE:PRLB) is one of the best 3D printing stocks to buy right now according to hedge funds and we believe that’s because of its large scale of operations and network. The company prints more than 250,000 parts each month and has served over 50,000 developers till now. 22 hedge funds were bullish on PRLB at the close of Q2 2024, according to the Insider Monkey database.
Overall PRLB ranks 7th among the 10 best 3D printing stocks to buy right now. While we acknowledge the potential of PRLB as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PRLB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.