The best and worst 3D printing stocks of 2021

Now that we’ve shifted the timeline to 2022, we’re going to take a look at how pure play 3D printing stocks perform in 2021.

A previous performance is not necessarily indicative of future results. But taking a stock’s past performance into account can be helpful in making investment decisions. Sometimes there are still the same or similar catalysts that caused a stock to go up or down in the past.

Last year the 3D printing stock group included a big winner – 3d systems (NYSE: DDD) – and several big losers, with Desktop metaI (NYSE: DM) the least efficient.

Image source: Getty Images.

How 3D printing stocks piled up in 2021

Businesses had to be pure games to make this list. In addition, their stocks had to be small or large cap (market caps of at least $ 300 million), listed on a major US stock exchange, and publicly traded throughout the year.

Society

Market capitalization

Wall Street’s projected annualized EPS growth over 5 years

Return 2021 (Decline)

Looking back over 3 years

3d systems $ 2.8 billion 30% 106% 112%
Stratasys (NASDAQ: SSYS) $ 1.6 billion 33% 18.2% 36%
Materialize (NASDAQ: MTLS) $ 1.4 billion 63% (56%) 19.2%
Nano Dimension (NASDAQ: NNDM) $ 975 million N / A (58.2%) (65.8%)
Office metal $ 1.5 billion N / A (71.2%) N / A

S&P 500

28.7% 100%

Data sources: YCharts and Yahoo! Finance. EPS = earnings per share.

There is one less action on this chart than in similar posts from previous years. The company ExOne, specializing in industrial metal 3D printing, was acquired by Desktop Metal in November 2021.

Why did 3D Systems stock outperform?

Along with other 3D printing companies, 3D Systems’ business was hit hard during the early stages of the pandemic. Specifically, its industrial vertical was significantly affected by the crisis, as many industrial companies shut down or downsized altogether after the global crisis exploded in early 2020. The company’s health activities have been doing quite well. resisted.

The strong performance of 3D Systems stock in 2021 can probably be mainly attributed to the company’s results which rebounded earlier and more vigorously from the pandemic than others in its industry.

In the first nine months (or three quarters) of 2021, 3D Systems revenue jumped 21% year-on-year to $ 464.8 million, even as the company sold some non-core assets. in 2021. It posted adjusted net income of $ 45.1 million, or $ 0.36. per share, compared to an adjusted net loss of $ 23.7 million, or $ 0.20 per share, in the prior year period. And it generated $ 62.7 million in operating cash, compared to using $ 32.7 million of cash on its operations in the first nine months of the previous year.

Why was Desktop Metal stock such a big loser?

One of the reasons Desktop Metal’s shares performed so poorly last year was not in the company’s control: Investors were overly enthusiastic and drove the share’s price higher after its entry. on the New York Stock Exchange in December 2021. In other words, the stock price has exceeded what it should have been. This dynamic has been common for new listings, especially those that used the Special Purpose Acquisition Company (SPAC) route.

Several other probable reasons for the stock’s poor performance can be summed up by this excerpt from my article from mid-November 2021 following the company’s publication of its third quarter results: “Cautious reasons include lack of transparency on organic revenue growth, the downward revision of annual objectives and the type of strategy [growth by acquisitions] the company is suing. “

Another likely reason for some investors’ skepticism is the company’s delay in releasing its popular P-50 production system. The planned launch date for this product has been pushed back several times in recent years.

What has The Motley Fool done to help its followers avoid taking a big beating on this title in 2021? For my part, in an article from March 2021 following the publication by the company of its annual results for 2020, I wrote: “The Desktop Metal stock is speculative. … [The company’s] The 38% drop in revenues year on year underscores the need for caution. Indeed, the stock has fallen 74% since then.

Investors should remain cautious about Desktop Metal stock but keep an open mind as it is extremely early in the game.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

Comments are closed.