Proto Labs (PRLB) — 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.