NEW YORK (TheStreet) -- Shares of Lakeland Industries Inc. (LAKE) - Get Lakeland Industries, Inc. Report are climbing higher by 14.14% to $24.26 in pre-market trading on Wednesday morning, as the maker of protective gear gets a boost from the confirmation of a third case of Ebola in the U.S.
A Texas Health Presbyterian Hospital worker reported running a fever on Tuesday and was immediately placed in isolation, tests conducted later that day confirmed that the hospital employee, who helped care for the late Thomas Eric Duncan, has Ebola, CNN.com reports.
Concerns over the spreading of the Ebola Virus have had strong reactions on stocks, with some like Lakeland Industries and other safety garment makers rising, while airline stocks have slumped.
As a result of the Ebola worries, Lakeland has seen a 208% stock surge and a rise in value to $115 million, Bloomberg reports.
"Lakeland is clearly is benefiting from the scare surrounding the Ebola virus. It's difficult to make an educated judgment on whether or not this will make a fundamental change as to the direction of the company," Bryant Saydah, the VP of institutional equity trading at Juda Group told Bloomberg.
Separately, TheStreet Ratings team rates LAKELAND INDUSTRIES INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate LAKELAND INDUSTRIES INC (LAKE) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to its closing price of one year ago, LAKE's share price has jumped by 247.45%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- LAKELAND INDUSTRIES INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, LAKELAND INDUSTRIES INC turned its bottom line around by earning $0.00 versus -$4.88 in the prior year.
- Net operating cash flow has significantly decreased to -$1.90 million or 459.11% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry. The net income has significantly decreased by 109.3% when compared to the same quarter one year ago, falling from $4.17 million to -$0.39 million.
- You can view the full analysis from the report here: LAKE Ratings Report