This 3D Printing Stock Could Double in the Next Year

Proto Labs is on the rise, and investors should get on board now

   
This 3D Printing Stock Could Double in the Next Year

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 be volatile.

Recently reported Q3 earnings were up 28% year over year at $0.37 per share, missing consensus estimates by a penny. The company is projected to earn $1.45 per share in 2013, up from $1.07 in 2012, and $1.78 in 2014.

On Oct. 1, the Trade of the Day said, “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.”

On Oct. 29, I again covered PRLB, saying, “On Oct. 9, the stock fell to a low of $68.29, and then quickly reversed. Trade of the Day followers should now be long a one-third position.

“Following the pullback, PRLB broke above its bull channel, and so it is appropriate to add another one-third to the position. A final third should be added on either a break to a new high or a pullback to the 50-day moving average at $76 as a long-term investment.”

On Oct. 31, the stock fell to a low of $71.19, so readers should now own a full position. For traders who missed the correction, they can enter a buy order at $82 for a trade to $95. But long-term investors should buy PRLB at the current price for a possible double within one year.11 12 13 rprlb 300x197 This 3D Printing Stock Could Double in the Next Year
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chart key 300x84 This 3D Printing Stock Could Double in the Next Year


Article printed from InvestorPlace Media, http://investorplace.com/2013/11/trade-day-proto-labs-prlb-2/.

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