Is Proto Labs (PRLB) Stock Outpacing Its Industrial Products Peers This Year?

For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group that are outperforming their peers. Proto Labs (PRLB) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Industrial Products peers, we might be able to answer that question.

Proto Labs is a member of our Industrial Products group, which includes 183 different companies and currently sits at #7 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Proto Labs is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for PRLB's full-year earnings has moved 23.2% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, PRLB has returned 14.2% so far this year. At the same time, Industrial Products stocks have gained an average of 8.8%. This means that Proto Labs is performing better than its sector in terms of year-to-date returns.

RBC Bearings (RBC) is another Industrial Products stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 22.2%.

For RBC Bearings, the consensus EPS estimate for the current year has increased 5.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Proto Labs belongs to the Rubber - Plastics industry, which includes 3 individual stocks and currently sits at #6 in the Zacks Industry Rank. This group has gained an average of 13.7% so far this year, so PRLB is performing better in this area.

On the other hand, RBC Bearings belongs to the Manufacturing - General Industrial industry. This 42-stock industry is currently ranked #59. The industry has moved +3.7% year to date.

Proto Labs and RBC Bearings could continue their solid performance, so investors interested in Industrial Products stocks should continue to pay close attention to these stocks.

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This article originally published on Zacks Investment Research (zacks.com).

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