
For investors, the conversation about value in 3D printing stocks depends on one’s time horizon. Last year, Goldman Sachs named the sector as one of its eight “creative destructor” industries that would remake the global economy. Analyst Cristina Colón presented the following chart showing a 16% 10-year compound annual growth rate.
Goldman Sachs
“3D printing is penetrating the automotive, aerospace, and medical industries, among others,” she wrote. “For example, Boeing now 3D prints 300 distinct airplane parts, noting a 25% to 50% cost savings per part. As materials properties improve and processes become more robust, 3D printing could become increasingly appealing for end-parts production.”
The two largest publicly traded 3D printing firms have seen solid growth in recent years, but they have experienced a difficult 2014. Shares of Stratasys (SSYS), America’s largest 3D printing company, have climbed more than 50% since August 2012 but are down 17% since Jan. 1. Likewise, 3D Systems (DDD) is up nearly 90% since summer 2012 but off approximately 45% this year.
The consensus seems to be this recent performance is not so much a no-confidence vote in the sector but more of a cooling-off period after the extreme run-up in interest that 3D printing saw last year among investors.
RBC Capital’s Amit Daryanani remains bullish on the sector, calling it a “hyper-growth market” in a July note. The most recent evidence one could point to is Amazon’s announcement in July that it would team up with two
Article source: http://www.businessinsider.com/the-case-for-3d-printing-stocks-2014-8

