Best 3D Printing Stocks

The post Best 3D Printing Stocks by Joshua Enomoto appeared first on Benzinga. Visit Benzinga to get more great content like this.

Undeniably, one of the most profound innovations in both the consumer retail and industrial markets has been 3D printing machinery. Also known as additive manufacturing (AM), 3D printing creates physical objects based on digital blueprints. That’s why its important for investors to know about the best 3D printing stocks.

Surprisingly, this remarkable invention has a long history. Initially, the technology sector introduced 3D printers in the mid-1990s. Later, in the early 2010s, consumer-level AM machines again hit the market with a vengeance.

But it’s not until now that the sector produced a compelling investment narrative. Below are the best of these stocks you can buy.

Quick Look at the Best 3D Printing Stocks:

• Stratasys
• DDD
• Proto Labs
• Desktop Metal
• Belgium

Overview

While modern consumers may take the concept of 3D printing — or the successive additive layering of materials to build a solid object from a digital file — for granted, the origin of this powerful and utilitarian innovation goes back several decades. In fact, scientists conceived of the idea in the 1970s, with the first physical experiments dating back to 1981.

Over the next several years, several engineers representing multiple international academic institutions forwarded groundbreaking innovations that would build the puzzle toward a commercially viable AM machine. In the mid-1990s, Stratasys, with help from IBM (NYSE: IBM), introduced 3D printers to the commercial market. Subsequently, in the late 2000s to early 2010s, 3D printing machines enjoyed more prominence and as a result, increased revenue.

In 2013, former President Barack Obama mentioned this burgeoning industry in his State of the Union speech. Naturally, this mention sent several of the best 3D printing stocks — and even some mediocre ones — to the stratosphere. Though many consumers were excited about this innovation, many more found themselves priced out of the market. Simply, consumer-level AM machines were too cumbersome, too slow and far too expensive to achieve mass-scale integration.

However, the market is rebounding sharply. According to Grand View Research, the global 3D printing market reached a valuation of $13.78 billion. By 2028, total AM sector revenue might hit $62.79 billion. Such a high potential value is a  credible target because 3D printing isn’t just for the dedicated hobbyist. Instead, its products have profound implications for healthcare (dental products and prosthetics), architecture, forensic pathology, electronics and even archaeology through fossil reconstruction projects.

Best Online Brokers for 3D Printing Stocks

Back when researchers were busy laying the groundwork for AM machinery, investors largely had to rely on traditional brokers to invest in the latest technologies, representing a cruel irony. Though the world was rapidly changing, the staid financial industry refused to keep pace with innovation.

But thanks to mobile investment apps which served to democratize access to the capital markets, anyone could enjoy benefits that would have been considered remarkable in the 1980s and 1990s, such as commission-free trading. Forced to adapt to new realities, online brokers bolstered their platforms. Today, you have myriad options at your disposal, with each offering similar financial incentives to join.

The choice of best online broker comes down to personal preferences. However, if you are intent on buying the best 3D printing stocks, you should consider a versatile platform. That’s because this sector is diverse. From established blue chips to lower-priced fare to even special purpose acquisition companies (SPACs), you’ll find that 3D printing stocks arrive in multiple flavors.

Below is a list of best online brokers to consider.

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Best For

Active and Global Traders

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get started securely through Interactive Brokers’s website

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Best For

Active and Global Traders

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Interactive Brokers is a comprehensive trading platform that gives you access to a massive range of securities at affordable prices. You can buy assets from all around the world from the comfort of your home or office with access to over 150 global markets. Options, futures, forex and fund trading are also available, and most traders won’t pay a commission on any purchase or sale.  

IBKR is geared primarily toward experienced traders and investors but now with the availability of free trades with IBKR Lite, casual traders can also acclimate to IBKR’s offerings.

Best For

• Access to international markets
• Active traders
• Detailed mobile app that makes trading simple
• Wide range of available account types and tradeable assets

Pros

• IB SmartRouting provides significant price improvement vs. industry
• Fractional trading allows investing regardless of share price
• Industry’s lowest margin rates
• Earn more by lending your fuly-paid shares

Cons

• Beginner investors might prefer a broker that offers a bit more hand-holding and educational resources

Best For

Leveraged Trading

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get started securely through Plus500’s website

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Disclosure: 82% of retail accounts lose money

Best For

Leveraged Trading

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82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Plus500 is an online CFD broker focusing on contracts for difference (CFDs). CFDs are similar to binary options in the U.S. where traders take all-or-nothing speculation on the prices of certain securities like indices, commodities or currencies. While not legal to trade in the U.S., CFDs are legal in many jurisdictions across the globe and Plus500 offers a wide array of tradable markets using these instruments. 

Plus500 doesn’t charge commission and only profits off the spread, which is the difference between the buy and sell price of a specific security. But Plus500 is not a broker for beginners — the education materials are sparse and CFDs are risky derivatives capable of sapping out all of an investor’s capital. Only trade these instruments if you understand how they operate and the risks involved with buying them.

Best For

• Traders looking for a smooth mobile experience

Pros

• Great mobile app
• Low spreads and commissions
• Unlimited demo account

Cons

• Only derivatives are available
• Not open to U.S. residents

Best For

Trading Ideas

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get started securely through public.com’s website

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Trading Ideas

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Public is the only investing platform that lets you trade stocks, ETFs, crypto, bonds, options and alternative assets—like fine art and collectibles—all in one place. Public also provides access to custom company metrics, live shows about the markets, and insights from a community of millions of investors, creators, and analysts.

Today, Public provides more ways to create a diversified portfolio than nearly any other online broker. Members can engage in sophisticated investing strategies and access a wealth of investing insights—from company-specific analysis to live audio shows and town hall-style Q&As. In addition, Public offers a premium membership tier with unique company KPIs, detailed performance metrics, and institutional-grade research. 

 

Best For

• Stock and ETF investors
• Crypto investors
• Investors looking to diversify with alternative assets or bonds and options

Pros

• Commission-free stock and ETF trading
• Fractional share investing
• Advanced data, tools, and insights with Public Premium

Cons

• You can’t transfer crypto to another wallet
• No mutual funds or precious metals
• At this time, only offers individual brokerage accounts and not IRAs

Best For

Beginners

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get started securely through Robinhood’s website

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Beginners

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Robinhood is a popular trading platform known for its commission-free trades and user-friendly mobile app. Ideal for novice investors, Robinhood makes it easy to buy and sell stocks, ETFs and cryptocurrencies. The platform offers a straightforward, no-frills experience, making it accessible for users new to investing. With features like fractional shares and a sleek interface, Robinhood lowers the barriers to entry for investing, allowing users to start with just a few dollars. It lacks the advanced tools and research options that more experienced investors might seek. Overall, Robinhood is a great choice for beginners seeking a simple way to invest.

Best For

• Beginners looking for simplicity
• Mobile-first investors
• Commission-free trades

Pros

• User-friendly mobile app
• Instant double
• Cash management
• Access to cryptocurrencies

Cons

• Limited research tools
• No mutual funds available
• Basic customer support options

Best For

Active Short Sellers

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get started securely through TradeZero’s website

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Best For

Active Short Sellers

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TradeZero is an online broker and free stock trading platform that provides everything you need to successfully share and trade, including round-the-clock customer support. TradeZero provides four different trading state-of-the-art software programs with its services, a locator for sourcing shares for shorting, commission-free trades, and real-time streaming, to name a few of the features promoted on their website. The software is a unique and (potentially) affordable option for anyone interested in stock trading.

Best For

• Traders seeking high transparency and mobility in a stock trading program
• Those attracted to commission-free trades
• Those seeking a free version of a high-quality trading program

Pros

• 24/7 live customer support
• Uses ZeroWeb technology, a powerful level 2 online platform with direct market access
• Mobile app allows users to access stocks and trade in real-time while on the go

Cons

• Enforces Pattern Day Trading restrictions (accounts need to maintain a daily equity balance of at least $25k)
• Mobile app could offer more features

Features to Look for in 3D Printing Stocks

1. Multiple applications: While an exciting arena, one of the biggest challenges facing 3D printing stocks is broader market acceptance and integration. Cost difficulties remain, especially in the pandemic-disrupted economy. Therefore, it’s vital that competitors in this market segment feature wide-ranging applications. Look for organizations that have multiple revenue streams from several industries, such as technology, healthcare, defense and transportation, among other fields.
2. Right timing: The excitement of 3D printing stocks doesn’t just stem from its implications for society at large. Yes, the equity units of individual sector players left a poor track record of volatility. Even today, 3D printing stocks are incredibly cyclical. Therefore, if you’re thinking about placing a wager, do so at either the beginning of a rally or after a seismic collapse — never as the stock nears what seems like a spike high.
3. Fiscal endurance: What draws contrarians and speculators alike to 3D printing stocks is that the sector — while rich in history — is still young. Many companies are jockeying for position, which suggests that the right investment now could yield huge long-term profitability. Nevertheless, 3D printers are mired in a war of attrition. Therefore, you should consider companies that have at least some strength in the balance sheet or better yet, positive earnings per share.

Dramatic Upside if You Can Handle the Heat

Evolving from a fantastical idea to a niche product line to an innovation that has wide-reaching utilitarian applications, 3D printing and the broader additive manufacturing industry are already changing multiple paradigms. Moving well beyond hobbyist use, today’s leading AM machines can address medical needs right on the stop with custom-manufactured solutions.

This dynamic sparked incredible returns for the best 3D printing stocks. At the same time, the market segment is undergoing teething issues, which gives the sector its characteristic boom-bust extremes. But with the AM industry at a relative lull, speculators may have another shot at additive glory.

Frequently Asked Questions

The post Best 3D Printing Stocks by Joshua Enomoto appeared first on Benzinga. Visit Benzinga to get more great content like this.