Bull of the Day: Proto Labs (PRLB)

The market has been flirting with highs again. When that happens, investors tend to chase whatever’s moving. But that’s not how you win long term. When volatility creeps back in, and it always does, you want stocks with real earnings momentum underneath the hood. The last couple of weeks, the market has begun to show signs of volatility, so it’s really a great time to laser in your focus on names with strong earnings momentum.

Strong earnings momentum like today’s Bull of the Day, Proto Labs (PRLB). Proto Labs is a digital manufacturing company specializing in rapid prototyping and low-volume production. Through CNC machining, injection molding, sheet metal fabrication, and industrial 3D printing, they help engineers go from design to production faster than traditional manufacturers. In a world obsessed with supply chain resilience and speed to market, that’s not a bad place to be.

Over the last week, a couple of analysts have really upped the ante on the current year numbers. It’s taken our Zacks Consensus Estimate up from $1.59 to $1.80 for the current year. Next year’s number is at $1.94. That means we are forecasting 8.43% earnings growth this year and 8.06% next year. That’s on revenue growth of 5.95% this year and 5.98% next year.

Manufacturing is quietly undergoing a digital transformation. Companies want shorter lead times, more customization, and less inventory risk. Proto Labs sits right at that intersection. This isn’t a flashy AI darling. It’s not a meme stock. It’s an infrastructure play on modern manufacturing.

Proto Labs, Inc. Price and Consensus

Proto Labs, Inc. price-consensus-chart | Proto Labs, Inc. Quote

Technically speaking, the stock has been building a base after prior declines. When you combine improving technical structure with rising earnings estimates, that’s often when institutional money starts to lean in.

The stock is really moving in the right direction as these earnings estimates have gone the same way. A consistent track record of earnings beats is underlying the move higher as well. The company has not missed earnings expectations since late 2021.

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This article originally published on Zacks Investment Research (zacks.com).

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