Due to its superior presence in the industrial market, and a strong market share, Stratasys (SSYS) has outperformed 3D Systems (DDD) in every way this year. Although Stratasys is down 5% this year, it still has strong prospects and has delivered better quarterly reports than its rivals. On the other hand, 3D Systems has plunged almost 60% in 2014 and has lowered its guidance twice in the span of a few months. The company didn't satisfy the analysts estimates in the previous quarter and has been subjected to multiple downgrades in the past few weeks. Therefore, I think Stratasys is the best bet for investors looking to profit from the 3D printing industry. Let's take a look at the reasons why I think Stratasys will perform nicely in the long run.
Optimistic analysts
The stock was upgraded by several analysts firms like Morgan Stanley and Stephens in the last few months. Analysts at Gartner said Stratasys has an advantage over its peers and the shipment of 3D printers is poised to more than double every year from 2015 to 2018. Gartner expects overall end-user spending on 3D printers to grow from $1.6 billion in 2015 to $13.4 billion in 2018.
Advantages
Stratasys should do nicely in the future as it has a robust position in the industrial 3D printing sector. While the company concentrates on the industrial 3D printing business sector, different organizations are going for the consumer market, which is yet to receive this have a huge impact. The company, in Q1, proclaimed its new frameworks called Objet500 and Connex3, Color Multi-material 3D printer. This is the first and last 3D printer to join shade and multi-material 3D and gimmicks an extraordinary triple plane innovation that permits the client to consolidate color with different consolidations of adaptability and transparency.
Great initiatives
The Stratasys-Objet merger yielded great revenue growth. The acquisition of Makerbot, an organization officially heading internationally in the 3D printing market, has also helped Stratasys. Makerbot increased Stratasys' share in the overall consumer sector, likewise adding to its productivity, which will turn out to be advantageous for its long haul development.
The Makerbot stage incorporates three new fifth era Makerbot replicator 3D printers - the Makerbot Replicator Desktop 3D printer, Makerbot Replicator Mini Compact 3D printer, and Makerbot Replicator Z18 3D printer. The Makerbot Replicator Mini won the CES 2014 Editors' Choice Award from Popular Mechanics, the CES 2014 Best in Show honor by Digital Trends and Zdnet and was named the Best of CES 2014.
Conclusion
Given the factors mentioned above, Stratasys is set to dominate the 3D printing industry. The company has performed very nicely this year and has a strong presence in the industrial sector. The company is also expanding its footprints in the customer segment as well. Thus, I think Stratasys is the best pick in the 3D printing industry.
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