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Stratasys (SSYS) Expands Portfolio With New Kimya Offerings

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Stratasys’ (SSYS - Free Report) subsidiary, MakerBot, recently announced that ARMOR Group’s Kimya ABS composite materials will be offered on MakerBot METHOD X 3D printer with MakerBot LABS GEN 2 Experimental Extruder.

Additionally, in October, MakerBot extended its materials portfolio to include Nylon 12 Carbon Fiber. The recently added Kimya tools further drive the expansion of MakerBot’s materials portfolio by bringing the total count of materials to 23.

New Capabilities Fuel METHOD Printers’ Performance

The three new Kimya ABS composite materials available to print on METHOD 3D printers are Kimya ABS Kevlar, Kimya ABS-ESD and Kimya ABS-EC.

Kimya ABS Kevlar is designed to provide greater precision and dimensional stability. Kimya ABS-ESD’s electrostatic discharge feature provides protection to electronics systems. Kimya ABS-EC is impact resistant and has great usage in the automotive and electronics industry.

Notably, the new capabilities, which include 3D printing with composite materials, facilitate time saving and cost reduction for customers compared to parts which are printed using desktop 3D printers. Further, these tools are expected to aid the performance of METHOD printers by providing higher precision and greater strength to the 3D printed parts.

Meanwhile, Stratasys’s shares are down 7.8% year to date against the Zacks Computer - Peripheral Equipment industry’s rally of 42.4%.

Robust Product Portfolio Drives Recovery

Notably, growing traction of Stratasys’ 3D printing portfolio and in-office rapid prototyping services across automotive, aerospace, defense, electronic, medical, education and consumer goods segments serves as a key catalyst.

The company’s products facilitate prototyping with reduced development time and upfront costs, thereby enhancing user experience. Moreover, polymer technology-related innovations in Fused Deposition Modeling (“FDM”) and PolyJet lines are expected to aid customer acquisition.

Further, in November, Stratasys collaborated with nTopology to provide a series of accessible, customizable Design for Additive Manufacturing workflows to the customers. The companies jointly developed FDM Assembly Fixture Generator, which helps engineers to automate their designs and enhance productivity.

Moreover, strong demand for the company’s J750 Digital Anatomy 3D printers by healthcare institutions and medical service providers is a major growth driver. Further, enhancements such as ultra-realistic simulation and realism with advanced bone capabilities are key positives.

Additionally, solid adoption of Stratasys’s 3D printing solutions among aerospace companies such as Boeing, Boom Supersonic, United Launch Alliance and automotive companies like Ford Motors, General Motors and Volkswagen, drives customer base expansion.

Furthermore, Stratasys’ recently announced acquisition of Origin, a 3D printing start-up, bodes well for the company’s focus to gain leadership in the polymer additive manufacturing market and is likely to aid top-line growth in the long haul.

Zacks Rank & Stocks to Consider

Stratasys currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are Arrow Electronics (ARW - Free Report) , Microsoft Corporation (MSFT - Free Report) and CDW Corporation (CDW - Free Report) . Arrow Electronics sports a Zacks Rank #1 (Strong Buy) while Microsoft and CDW carry a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for CDW, Microsoft and Arrow Electronics is currently pegged at 13.1%, 12.5% and 9.8%, respectively.

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