Put This Stock at the Top of Your Bargain-Hunting Watch List

by Sam Collins | October 1, 2013 7:08 am

Put This Stock at the Top of Your Bargain-Hunting Watch List

Proto Labs (PRLB[1]) — This company manufactures computer numerical control (CNC) machined and injection molded custom parts for prototyping and short-run production. At the forefront of the 3-D printing industry, it has a high P/E ratio, and therefore, could become very volatile.

The company earned $1.07 per share in 2012 and is projected to earn $1.43 in 2013 and $1.73 in 2014.

Technically, PRLB is in a powerful bull channel with a top around $80 and support at $70.50. This stock should not be chased, but in an uncertain stock market, it will almost certainly appear on the lists of savvy buyers who will bargain-hunt during a general market correction.

A pullback to $70 could be the level to make a one-third commitment, continuing to add on further declines to its 200-day moving average at $55. Long term, PRLB could provide an enormous return.

10 01 13 prlb 300x197 Put This Stock at the Top of Your Bargain Hunting Watch List
Click to Enlarge

chart key 300x84 Put This Stock at the Top of Your Bargain Hunting Watch List[2]

Endnotes:
  1. PRLB: http://studio-5.financialcontent.com/investplace/quote?Symbol=PRLB
  2. [Image]: http://investorplace.com/wp-content/uploads/2013/05/chart-key.gif

Source URL: http://investorplace.com/2013/10/trade-of-the-day-proto-labs-prlb/
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