Proto Labs Q3 Earnings: Should You Buy, Sell, or Hold?

Proto Labs (PRLB) has traded at $48.99 per share, gaining 17.7% over the last six months, similar to the S&P 500's 15.3% return. However, the company's long-term sales performance has disappointed, with a 3.3% compounded annual growth rate over the last five years. EPS has declined by 8.7% annually, and previous growth initiatives have lost money with a negative 1.4% five-year average ROIC. The stock currently trades at 30.3× forward P/E, which may indicate that good news is already priced in.