From General Electric and Dell Technologies to BMW and NASA, top manufacturing and engineering enterprises trust Xometry to meet their on-demand manufacturing needs. This 2021 IPO taps artificial intelligence, or AI, to transform the world's largest industries.
While the AI innovator did not make the latest list of new buys by the best mutual funds, it does sport impressive institutional sponsorship. Columbia Small Cap Growth, T. Rowe Price New Horizons and Alger Small Cap Growth all own shares of XMTR stock.
Plus, 19 funds with an A+ or A rating from IBD have reported positions in Xometry.
With earnings due Nov. 10, the company has forged a spot on the IBD Leaderboard watchlist as it molds a new buy point.
AI Driving Xometry Sales Growth
As a leading AI-enabled marketplace for on-demand manufacturing, Xometry uses proprietary technology to enable buyers to source on-demand manufactured parts and assemblies. The marketplace also empowers sellers of manufacturing services to grow their businesses.
Riding the growth of artificial intelligence, on-demand manufacturing and 3D printing, Xometry has its robotic fingerprints in a wide range of industries. They include the automotive, energy, medical and defense sectors, to name a few.
Customers range from self-funded startups to Fortune 100 companies.
As often happens with IPOs, sales growth has preceded earnings. Xometry generated 89% revenue growth last quarter. Over the last three years, it posted average sales increases of 66%.
On the earnings front, the company is still expected to lose 92 cents per share this year and 31 cents in 2023. However, analysts recently raised 2023 earnings estimates.
Although Xometry leads its machinery and automation group, the lack of earnings growth earns XMTR stock a lackluster 62 Composite Rating.
According to IBD Stock Checkup, the company holds a weak D SMR Rating, which tracks sales growth, profit margins and return on equity. But Xometry's 0% debt-to-equity ratio is a major positive.
XMTR Stock Molds New Buy Point
Xometry is working on a bottoming base that has the elements of a giant cup with handle. The handle is nearly long enough to count as a base all its own.
The potential buy point is 64.45.
XMTR stock has shown signs of accumulation in the right side of the base, including multiple heavy-volume up weeks as shares continue to rise off the May low.
While forming the handle, the relative strength line slipped off its highs but its trending higher again. Earlier this month, Xometry found support at its 10-week moving average, which has been rising strongly.
Boosted by innovations in AI, robotics, 3D printing and more, see if Xometry can issue a strong report next month and craft a new breakout.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
