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Why Proto Labs Stock Popped 13% Today

By Rich Smith - Updated Jan 7, 2021 at 4:50PM

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What's good for 3D Systems might be good for Proto Labs, too.

What happened

Shares of 3D prototyping company Proto Labs (PRLB 1.17%) joined a broad rally among 3D printing stocks of all stripes Thursday, rushing ahead to close the day up 13%.

So what

In the absence of any other news, Proto Labs' share price strength appears to trace back directly to preliminary fourth-quarter earnings results published by 3D printer maker 3D Systems (DDD -0.62%) this morning.

In that announcement, 3D Systems noted that sales for the fiscal fourth quarter seem likely to land at least 21% higher than analysts had forecast. What's more, the company says it might finally break a string of quarterly financial losses that has stretched back, uninterrupted, for four straight years.

3D printer

A 3D printer. Image source: Getty Images.

Now what

So an announcement like that might make investors in other 3D printing stocks feel just a bit more optimistic about their own chances. And even if 3D Systems' good news doesn't spread to other stocks in the sector, here's another reason for optimism:

Unlike 3D Systems, Proto Labs itself has been profitable for every year of its existence as a publicly traded company. And that's an even better reason to like the stock than anything 3D Systems might have to say.

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Stocks Mentioned

Proto Labs, Inc. Stock Quote
Proto Labs, Inc.
$48.40 (1.17%) $0.56
3D Systems Corporation Stock Quote
3D Systems Corporation
$9.64 (-0.62%) $0.06

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