Proto Labs Inc (PRLB): Today's Featured Industrial Goods Winner

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Proto Labs ( PRLB) pushed the Industrial Goods sector higher today making it today's featured industrial goods winner. The sector as a whole closed the day down 0.4%. By the end of trading, Proto Labs rose $0.90 (1.3%) to $70.64 on heavy volume. Throughout the day, 847,989 shares of Proto Labs exchanged hands as compared to its average daily volume of 445,300 shares. The stock ranged in a price between $67.02-$70.80 after having opened the day at $69.17 as compared to the previous trading day's close of $69.74. Other companies within the Industrial Goods sector that increased today were: Erickson Air-Crane ( EAC), up 18.0%, Astrotech Corporation ( ASTC), up 10.6%, 3D Systems Corporation ( DDD), up 6.0% and Fuelcell Energy ( FCEL), up 5.9%.

Proto Labs, Inc., together with its subsidiaries, manufactures computer numerical control (CNC) machined and injection molded custom parts for prototyping and short-run production. Proto Labs has a market cap of $1.8 billion and is part of the industrial industry. The company has a P/E ratio of 55.4, above the S&P 500 P/E ratio of 17.7. Shares are up 76.9% year to date as of the close of trading on Monday. Currently there are 6 analysts that rate Proto Labs a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet 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 impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation.

On the negative front, UQM Technologies ( UQM), down 9.8%, Highway Holdings ( HIHO), down 8.7%, Broadwind Energy ( BWEN), down 5.5% and India Globalization Capital ( IGC), down 5.4% , were all laggards within the industrial goods sector with Reliance Steel and Aluminum ( RS) being today's industrial goods sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the industrial goods sector could consider Industrial Select Sector SPDR ( XLI) while those bearish on the industrial goods sector could consider ProShares Short Dow 30 ( DOG).

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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