Stratasys, Ltd.SSYS recently announced a partnership with the USA Luge team, which marks its entry into the sports industry. The luge team is deploying Stratasys' "applied additive technology solutions" for manufacturing customized racing sleds for athletes participating in the 2018 Winter Games.
Luge is a sport where athletes race feet first and face up in a small one sled meant for one or two people. Stratasys' Fused Deposition Modeling (FDM) based 3D printing process is enabling the team to manufacture and test cost-efficient sleds that suit each athlete. The customization level that can be achieved via the FDM is a positive for lugers.
Per Stratasys' press release, "Additive manufacturing is key for engineering mandrels for the racing team's Doubles Tower - a composite structure at the sled's front, used to accurately position riders' legs during competition." The importance of this additive manufacturing technique is evident from the fact that earlier it took several weeks to create mandrels and make any changes in the structure, but with Stratasys' tools this work can now be completed in a week's time.
The recent deal indicates Stratasys' efforts to expand. The company is already leading in providing 3D printing solutions in the aerospace and automotive industries, given its partnerships with the likes of The Boeing Company BA , Ford Motor Company F , Boom Supersonic and United Launch Alliance.
By collaborating with the U.S. luge team, Stratasys has now forayed into the sports industry, which has been witnessing rapid adoption of 3D printing solutions. The majority of the demand comes from athletes with some form of disability who require tailored gear.
Stratasys seems well poised to capture market share. This will eventually drive revenues over the long run.
Stratasys, Ltd. Revenue (TTM)
Stratasys has a Zacks Rank #3 (Hold).
A top-ranked stock in the broader technology sector is Micron Technology, Inc. MU , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Long-term expected EPS growth rate for Micron is 10%.
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