Trade-Ideas LLC identified

Proto Labs

(

PRLB

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Proto Labs as such a stock due to the following factors:

  • PRLB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $28.9 million.
  • PRLB has traded 169,811 shares today.
  • PRLB is up 3% today.
  • PRLB was down 13.1% yesterday.

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More details on PRLB:

Proto Labs, Inc., together with its subsidiaries, operates as an online and technology-enabled manufacturer of custom parts for prototyping and short-run production. PRLB has a PE ratio of 35. Currently there are 3 analysts that rate Proto Labs a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Proto Labs has been 315,400 shares per day over the past 30 days. Proto has a market cap of $1.6 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 0.86 and a short float of 25.4% with 10.47 days to cover. Shares are down 16.3% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Proto Labs as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, premium valuation and disappointing return on equity.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 12.3%. Since the same quarter one year prior, revenues rose by 24.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • PRLB has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 5.33, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for PROTO LABS INC is rather high; currently it is at 59.87%. Regardless of PRLB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PRLB's net profit margin of 14.69% compares favorably to the industry average.
  • PRLB has underperformed the S&P 500 Index, declining 13.25% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.

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