Why Proto Labs Skyrocketed 80% in 2013 and What it Means for 2014

By Steve Heller – Dec 31, 2013 at 4:13PM

NYSE: PRLB

Proto Labs

Market Cap

$826M

Today's Change

(1.07%) $0.34

Current Price

$32.10

Price as of April 23, 2024, 4:00 p.m. ET

Proto Labs seems to be in a excellent position to benefit in 2014.

Proto Labs (PRLB 1.07%) had an incredible 2013, its stock surging 80% over the year.

As a rapid manufacturing company, it's easy to see why Proto Labs got caught up in the 3-D printing craze, despite using traditional manufacturing processes to quickly produce parts for its customers. As a result, the stock experienced significant P/E multiple expansion over the last year, but the good news is that its business has been faring quite well.

The company reported record revenue during its third quarter, driven by strong gains in customers and customer spending. At the same time, Proto Labs' CEO Brad Cleveland announced his departure, which first spooked investors, but it seems a CEO change could ultimately benefit the business over the long term.

In the following video, 3-D printing analyst Steve Heller sheds light on Proto Labs' year and what investors can look forward to in 2014.

Fool contributor Steve Heller owns shares of Proto Labs. The Motley Fool recommends Proto Labs. The Motley Fool owns shares of Proto Labs. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.