A strong stock as of late has been Proto Labs (PRLB). Shares have been marching higher, with the stock up 10.7% over the past month. The stock hit a new 52-week high of $70 in the previous session. Proto Labs has gained 34.8% since the start of the year compared to the 16.1% move for the Zacks Industrial Products sector and the 29.4% return for the Zacks Rubber - Plastics industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 1, 2026, Proto Labs reported EPS of $0.54 versus consensus estimate of $0.4.
For the current fiscal year, Proto Labs is expected to post earnings of $2.07 per share on $576.01 in revenues. This represents a 24.7% change in EPS on a 8.04% change in revenues. For the next fiscal year, the company is expected to earn $2.22 per share on $610.2 in revenues. This represents a year-over-year change of 7.25% and 5.94%, respectively.
Valuation Metrics
Proto Labs may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Proto Labs has a Value Score of D. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 32.9X current fiscal year EPS estimates, which is a premium to the peer industry average of 23.9X. On a trailing cash flow basis, the stock currently trades at 29.3X versus its peer group's average of 9.7X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Proto Labs currently has a Zacks Rank of #1 (Strong Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Proto Labs meets the list of requirements. Thus, it seems as though Proto Labs shares could have potential in the weeks and months to come.
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Proto Labs, Inc. (PRLB): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).