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

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

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.

PRLB Chart
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Chart Key[2]

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

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