Out Fox The $treet

As Proto Labs ( NYSE: PRLB     ) gains day after day, investors need to be reminded of  ExOne 's   ( NASDAQ: XONE     ) stock collapse in the related rapid prototyping sector. Like ExOne , Proto Labs stock soared to $80 from below $30 during the last year. . But after ExOne shares' major collapse in the last month, Proto Labs' investors need to understand that further stock gains could set it up for a similar fate. Proto Labs is a quick-turn manufacturer of custom parts for prototyping, while ExOne develops machines for producing additive manufacturing parts -- commonly referred to as 3D printers. In general terms, these two stocks work to improve the process of developing new products. Both companies' quick revenue growth has led to massive share-price gains that their respective fundamentals probably don't support. Read the full article here . Disclosure: No positions mentioned. Please review the disclaimer page for more details....

The 3D printing and rapid prototyping sector entered 2013 as one of the hottest sectors. After a new IPO, finalization of a game-changing merger, continuous questions regarding the sector leader, and a rocky few months, the sector presents a different picture as the first quarter comes to an end. While the equity markets might have taken a pause as the sector got overheated, designers are moving full steam ahead into this area. Nike ( NKE ) recently unveiled its first football cleats featuring a 3D-printed plate. The plate is crafted using Selective Laser Sintering technology that uses high-powered lasers to fuse small particles of materials into 3D shapes. Read the full article at Seeking Alpha. Disclosure: No stocks mentioned. Please review the disclaimer page for more details. 

While the whole market is going crazy over 3D printing and rapid prototyping technologies, Proto Labs (NYSE: PRLB ) remains a relatively unknown equity. The stock regularly trades fewer than 100,000 shares in a day, while sector leaders 3D Systems (NYSE: DDD ) and Stratasys (NASDAQ: SSYS ) regularly trade over 1M shares in a day. The company is a leading online and technology-enabled quick-turn manufacturer. Its motto is “Real Parts, Real more » Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

Demand for software companies that cater to business clients remains strong, but not enough workdays exist in a year to make Workday  (NYSE: WDAY ) attractive at current market multiples. The company went public in mid-October at highly unappealing multiples that leave limited upside for the retail investor buying now. The provider of enterprise cloud-based applications for customers to manage critical business functions trades at around 20x 2013 revenue targets. A more » Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

The 3D Modeling/Rapid Prototyping (RP) technology sector promises to change the world. The RP technology allows for a design tool that greatly improves the product development cycle by allowing rapid creation of models for testing. Read this article for more information on the sector and leaders. Unfortunately the concept has limited commercial production capabilities and material challenges. Over time, these will naturally become less and less of a problem. For now though, several sectors such as aviation parts and medical devices can benefit greatly from the ability to RP. Not to mention, any wealthy person that wants to make their own iPhone case at home. The 3D Printing concept has been around for awhile, but it is just now becoming a mainstream reality with sub $10,000 commercial printers and sub $1,300 home printers. Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

Impressive stuff from 3D Systems (DDD). Watch the below video as the CEO showcases the new 3D home printer with Blomberg West. Definitely need to keep an eye on this stock along with Proto Labs (PRLB) that recently went public. This real time printing and creation of manufacturing products has the potential for huge growth. Right now though, 3D Systems trades at 24x forward earnings with only 15% long term earnings growth. Clearly for now the stock doesn't match the growth rate. The question is whether the company has created a product that will dramatically increase growth or whether this product is ultimately a novelty product. This is clearly worth more research. Maybe a weekend project. Disclosure: No positions mentioned. Please read the disclaimer page for more details.