Analysts Still Like Xometry (XMTR) Even After Its Rally, Here’s Why Farooq Mon, November 9, 2026 at 1:48 PM EST 4 min read XMTR +5.14% ^GSPC +2.35% Trade Xometry on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
We just published a list of the 10 Best All-Time High Stocks to Buy According to Wall Street and Xometry (NASDAQ:XMTR) ranked 9th on this list.
Wall Street's leadership changed hands over the past month. The technology and chip stocks that carried the market through most of 2026 lost ground, while healthcare, financials, real estate, utilities and consumer-focused stocks took over.
The scoreboard showed it in mid-October. Healthcare led gains among the S&P 500's 11 sectors and hit a record high, financials rose 1%, real estate climbed 1.7% and utilities added 1.2%, while technology slipped 0.3%. The S&P 500 value index gained 0.9% that day as its growth counterpart dipped 0.2%. Jim Baird, chief investment officer at Plante Moran Financial Advisors, tied the move to doubts about AI payoffs: "Investors are looking for other opportunities outside of tech, and healthcare is one of the beneficiaries of that."
The rotation sped up in November. On Monday, investors moved into consumer cyclical, financial services and consumer defensive stocks, and the main technology sector fund was down 2.4% by mid-afternoon. Last Thursday, the Philadelphia Semiconductor Index fell as much as 11%, its worst showing since March 2020, and the Nasdaq Composite slid into a correction, a drop of at least 10% from its record close in early October. The VIX, Wall Street's fear gauge, jumped more than 65% in a day. In short, money moved toward companies with steadier earnings and away from the most crowded trades.
Sameer Samana, senior global market strategist at Wells Fargo Investment Institute, said the pain was concentrated: "Anything related to AI is down more than anything not related to AI." Our ranking of stocks sitting near all-time highs that Wall Street favors looks at names that have held up through the swings.
Samana described the shift as a change of buyers. The first wave of AI investors chased growth, he said, while a newer group wants companies with healthy cash flow, and he noted that many AI stocks are still not cheap. Will Compernolle, a macro strategist at FHN Financial, said the selling in chipmakers was sending money into Treasuries, and that investors were also rotating from chipmakers into the biggest spenders on AI data centers.
We covered the group that led October's gains in our list of healthcare stocks that hedge funds favor. Not everyone reads the selloff as a verdict on the economy. Charlie McElligott, a cross-asset strategist at Nomura, said it reflected hedge funds locking in their 2026 gains rather than a worsening in fundamentals.
Xometry made it to our list because it has an average upside potential of 8%. Xometry has now grown revenue about 40% for two quarters running, and this time the growth came with a profit. Chief Financial Officer James Miln noted that sales growth held at that pace for the second quarter in a row. Third-quarter revenue reached a record, led by the marketplace side, where buyers post designs for custom parts and manufacturers bid to make them. Sales that grow this fast tend to eat into profit, which is why strong growth that also pays off matters.
The turn to profit is the newer part of the story. The company reported net income of $1.9 million, against a net loss of $11.6 million a year earlier. Chief Executive Officer Sanjeev Singh Sahni said the company's key growth initiatives drove the record results, and the marketplace's gross margin also hit a record.
Management lifted its full-year outlook as a result. It now expects revenue growth of at least 37%, up from the 33% to 34% it forecast before, along with adjusted EBITDA of $68 million to $68.5 million for the year. Investors who followed the stock through its loss-making years now have a company that is growing and earning at once.
While we acknowledge the potential of XMTR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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This article is originally published at Insider Monkey.
