3 Health Services Stocks Nudging The Industry Higher

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 61 points (0.4%) at 16,694 as of Thursday, May 29, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,757 issues advancing vs. 1,207 declining with 183 unchanged.

The Health Services industry as a whole closed the day up 0.3% versus the S&P 500, which was up 0.4%. Top gainers within the Health Services industry included VirtualScopics ( VSCP), up 2.8%, American Caresource Holdings ( ANCI), up 7.8%, Lakeland Industries ( LAKE), up 2.3%, Vision-Sciences Inc (DE ( VSCI), up 5.4% and AdCare Health Systems ( ADK), up 3.3%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

Lakeland Industries ( LAKE) is one of the companies that pushed the Health Services industry higher today. Lakeland Industries was up $0.17 (2.3%) to $7.50 on heavy volume. Throughout the day, 16,429 shares of Lakeland Industries exchanged hands as compared to its average daily volume of 7,100 shares. The stock ranged in a price between $7.30-$7.50 after having opened the day at $7.33 as compared to the previous trading day's close of $7.33.

Lakeland Industries, Inc., together with its subsidiaries, manufactures and sells safety garments and accessories for the industrial protective clothing market worldwide. Lakeland Industries has a market cap of $39.0 million and is part of the health care sector. Shares are up 39.4% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Lakeland Industries a buy, no analysts rate it a sell, and none rate it a hold.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates Lakeland Industries as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from TheStreet Ratings analysis on LAKE go as follows:

  • 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. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, LAKELAND INDUSTRIES INC swung to a loss, reporting -$4.88 versus $0.21 in the prior year.
  • 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 748.8% when compared to the same quarter one year ago, falling from $0.28 million to -$1.84 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Textiles, Apparel & Luxury Goods industry and the overall market, LAKELAND INDUSTRIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for LAKELAND INDUSTRIES INC is rather low; currently it is at 24.10%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -8.05% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$3.40 million or 671.81% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here: Lakeland Industries Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

If you liked this article you might like

Biotech Movers: Red Hill Jumps After Securing Rights Sell GERD Treatment

5 Stocks Everyone Hates -- but You Should Love

Strong On High Volume: Lakeland Industries (LAKE)

Lakeland Industries (LAKE) Is Weak On High Volume Today

Lakeland Industries (LAKE) Stock Gains in After-Hours Trading on Earnings Beat