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3D Printing Innovator Molds Breakout After Fashioning 1,413% Run From IPO Low

Kornit Digital (KRNT) is making 3D printing fashionable and sustainable. Based in Israel, the company’s innovations in digital textile printing technology also have KRNT stock walking down the runway toward a new breakout, with analysts expecting 833% earnings growth in Q2.




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Kornit develops and manufactures industrial digital printing technologies for the garment, apparel and textile industries. It offers complete solutions, including digital printing systems, inks and software. Founded in 2002, Kornit has approximately 500 employees operating in five offices around the world.

Viewing sustainability as a core value, Kornit has invested heavily in minimizing its environmental footprint and producing zero wastewater.

While Kornit doesn’t have the name recognition of highflying tech names, the stock has quietly produced a red carpet-worthy performance. KRNT stock has soared as much as 1,413% from its post-IPO low in May 2016 through June of this year.

Kornit Digital has also earned a spot on the IBD Breakout Stocks Index.


Who Joins 3D Printing Innovator Kornit On The IBD Breakout Stocks Index?


Sustainable, Eco-Friendly 3D Printing For Garments And Apparel

In April, Kornit Digital announced MAX technology, which brings sustainable, retail quality on-demand production to the mainstream. The technology delivers previously unattainable retail quality print applications on multiple fabric types.

A key feature of MAX technology is XDi, which delivers revolutionary 3D printing capabilities that can simulate embroidery, vinyl, and heat transfer in a single, waste-free digital process. Using XDi, brands can expand their offerings to include innovative decorations without the cost of operating analog technologies.

Kornit plans to roll out the MAX technology to additional lucrative market segments, including team sports and athleisure. The company is also targeting diverse categories of fashion and home décor applications.

The first product with MAX technology is now commercially available. Known as Atlas MAX, it’s a carbon-neutral, industrial-scale direct-to-garment (DTG) production system.

Providing retail quality, color-matching capabilities with exceptional durability, Atlas MAX is delivered with XDi technology built-in for 3D printing capabilities.

With a market capitalization of $5.1 billion, KRNT stock actually outranks leading pure-play 3D printing players 3D Systems (DDD) ($4.8 billion), Protolabs (PRLB) ($2.6 billion) and Stratasys (SSYS) ($1.6 billion).

3D Printing Helps Kornit Mold New Buy Point And Big Expectations

With its 1,413% rebound after an initial slump following its April 2015 IPO, Kornit Digital is now molding a deep cup with handle showing a 122.66 buy point. The stock is trading 3% below the entry.

While forming that chart pattern, KRNT stock has recaptured its 10-week moving average and its relative strength line has reversed higher.

The stock’s resurgence has come as the company’s fundamentals have found new strength. After three quarters of flat growth or losses, Kornit has delivered two quarters of accelerating earnings growth. In Q1, it posted 173% EPS growth, albeit based on the prior-year quarter that showed a loss.

In addition to expectations of 833% earnings growth in Q2, analysts see Kornit delivering a 343% EPS increase for the full year.

Revenue has also bounced back, with two quarters of acceleration including a 152% spike last quarter.

IBD Breakout Opportunities ETF

The IBD Breakout Opportunities ETF from Innovator Capital Management tracks the IBD Breakout Stocks Index. As with other index ETFs, this allows you to essentially invest in the entire index in addition to or rather than buying individual stocks. Learn more here about the ETF and Innovator funds.

Follow Matthew Galgani on Twitter at @IBD_MGalgani.

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