All cylinders are firing for 3D Systems (NYSE:DDD), a leading 3D printing and digital manufacturing company experiencing this hypergrowth megatrend in the best possible way. But can there be too much of a good thing? Perhaps. DDD stock may have maxed out its potential, and there are other 3D printed fish in this sea.
Earlier this year 3D Systems blew first-quarter results out of the water across the board. DDD stock is best left untouched for a moment until its current trading heat dissipates, but the company is solid and will persist — and thrive — into the future.
DDD Stock Shines
Forgetting the 3D printing era prior to 2021, which was relatively rough, we’ve finally arrived at a time where 3D printing technology is beginning to gain meaningful traction.
3D printing machines are cheaper, faster and more available than ever before, and the repertoire of materials they can print with is ever expanding. 3D printing is starting to catch on with industrial organizations, for a variety of reasons.
For 3D Systems, the results of technological advancements and increasing adoption mean stellar Q1 results.
Investors loved these results so much that DDD stock shot up 15%.
Rather than beat earnings per share by Wall Street’s projected two cents, it crushed it by 17 cents per share. Revenues also came in above expectations — $146.1 million versus $135.6 million. If that wasn’t impressive enough, 3D Systems grew its organic revenue by 17%, and its healthcare business rose year-over-year by 39%.
3D Systems was on fire. And it still is, gaining nearly 30% on Tuesday alone.
A New Partnership
In more recent news, 3D Systems partnered with CollPlant (NASDAQ:CLGN), a company using plant-based technology to mass produce building blocks that are usable in regenerative medicine. Combining these two companies’ functionality — 3D printing and the production of biofriendly materials — gives us a match made in heaven.
This partnership’s focus lies in creating patient-tailored breast implants for the vast majority of the 2.3 million women diagnosed with breast cancer who require partial or full removal of cancerous tissue.
Thanks to their innovative technology, 3D Systems can 3D print implants designed specifically for an individual’s unique anatomy, using CollPlant’s unique bio material. These implants will be safer than existing solutions, and the material used will blend with existing tissue far more effectively.
This partnership is huge for 3D Systems and its expansion in a variety of industries, as we think medical applications for 3D Systems will be of particular importance in the future.
The Bottom Line on DDD Stock
It’s no secret that 3D Systems is doing well — maybe too well.
So well, in fact, that there’s no longer much upside potential for investors.
Earlier in May, we recommended DDD stock. If you had invested at that time, you’d be sitting pretty with a 75% share price increase. But that time has since passed, and it’s time to move on to other players in the space.
As the 3D printing hypergrowth megatrend carries companies in the 3D printing space higher, your best bet for maximum gains at this point lies with other, smaller 3D printing stocks.
3D Printing Stocks: Where to Look
One undervalued stock we’re particularly fond of is Desktop Metal (NYSE:DM).
We think Desktop Metal is even more technologically capable with its world-changing Single Pass Jetting technology. With this tech, a new generation of ultra fast, efficient and affordable 3D printers can exist.
We think Desktop Metal will emerge as one of the most important manufacturing equipment suppliers in the world. There is huge upside potential here, especially given Desktop Metal current undervalued. We see DM stock hitting $20, if not $30 in the future.
When that happens depends entirely on the market, who doesn’t always favorably view companies with emerging tech.
But DM stock is not the only high-growth, high-return stock on my radar today.
In fact, I have more than 40 hypergrowth stocks that could score investors Amazon-like returns over the next few months and years.
These stocks include the world’s most exciting autonomous vehicle startup, a world-class “Digitainment” stock creating the building blocks of the metaverse, a company that we fully believe is a “Tesla-killer,” and many more.
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On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It’s the theme of his premiere technology-focused service, Innovation Investor. To see Luke’s entire lineup of innovative cutting-edge stocks, become a subscriber of Innovation Investor today.