Stratasys Ltd. (SSYS - Free Report) has been scaling new heights across all its business segments. In the past few months, the company has inked strategic partnerships as well as launched diverse products, which reflect its solid fundamentals.
Last week, Stratasys entered into a new strategic partnership with Schneider Electric per which the French multi-national company will incorporate the 3D printing company’s technology into its manufacturing processes. By implementing 3D printing, Schneider Electric intends to achieve efficiency goals.
It should be noted that Schneider Electric has already been using Stratasys’ 3D printing in its product development, prototypes and industrialization. Therefore, the recent agreement will strengthen the relationship of the two companies.
Schneider Electric has made savings of up to 90% in both time and money since it deployed 3D printing solutions across its production operations in Grenoble, France, as per Stratasys. Schneider Electric is committed to creating “Factory of the Future” and the recent deal with Stratasys is believed to be a major step in that direction.
3D Printing Market
The 3D printing market presents a favorable long-term investment opportunity as a large number of engineers, designers, architects and entrepreneurs are resorting to 3D solutions for their primary designing and product modeling.
According to market research firm CONTEXT, over half a million 3D printers have already been shipped across the globe between the 1980s and mid-2015, and the industry is currently on track to ship its millionth unit by 2017. Data from the Wohlers Report 2014 revealed that the worldwide 3D printing industry is expected to grow from $3.07 billion in 2013 to $12.8 billion by 2018, and exceed $21 billion by 2020 at a CAGR of 34%.
As the industry leader in 3D printing, this is encouraging information for Stratasys, as it will be able to grab a large share of this market. Stratasys has entered into several strategic partnerships with the likes of The Boeing Co. (BA - Free Report) , Ford Motor Co. (F - Free Report) and Siemens to tap this opportunity.
We believe the recent deal with Schneider Electric is a strategic move by Stratasys to expand its geographic reach and drive market penetration.
The partnership spells opportunities for Stratasys’ 3D printing business and will further strengthen its base. We believe that the company’s portfolio of new and innovative products will help it in the long run to generate incremental sales.
Stratasys has a Zacks Rank #3 (Hold). A better-ranked stock worth considering in the broader technology sector is Ambarella Inc. (AMBA - Free Report) , which sports a Zacks Rank #1 (Strong Buy). The stock has witnessed upward estimate revisions in the last 30 days and has a long-term EPS growth rate of 14.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
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