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Proto Labs: Growth Doesn't Justify Valuation

While Proto Labs (PRLB) doesn't get the attention of the stocks in the 3D printing sector, it doesn't prevent the stock from attracting the same lofty valuations. The on-demand manufacturer of custom parts for prototyping and short-run production recently reported solid Q414 numbers sending the stock higher.

Sure most of the gains were only a rebound following the Stratasys (SSYS) induced selloff, but at least the stock now sits at higher levels. The question is whether investors should now load up on the stock after roughly 15 months of consolidation.

Good Growth, But Not Enough

The headline numbers grabbed a lot of positive attention, but the under the surface growth wasn't nearly as impressive. What really grabbed the headlines was revenue of $56.1 million beating analyst estimates of $54.4 million. The number was boosted by $3.9 million of revenue from the acquisition of additive manufacturer Fineline reducing the organic growth… Read More …