3 Stocks Moving The Health Services Industry Upward

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The three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 13 points (0.1%) at 16,969 as of Wednesday, July 2, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,178 issues advancing vs. 1,877 declining with 123 unchanged.

The Health Services industry as a whole closed the day up 0.1% versus the S&P 500, which was unchanged. Top gainers within the Health Services industry included CAS Medical Systems ( CASM), up 3.5%, Escalon Medical ( ESMC), up 2.2%, Kips Bay Medical ( KIPS), up 2.0%, Lakeland Industries ( LAKE), up 1.7% and American Caresource Holdings ( ANCI), up 5.0%.

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 $0.12 (1.7%) to $7.21 on light volume. Throughout the day, 3,015 shares of Lakeland Industries exchanged hands as compared to its average daily volume of 8,100 shares. The stock ranged in a price between $7.05-$7.21 after having opened the day at $7.05 as compared to the previous trading day's close of $7.09.

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 $38.4 million and is part of the health care sector. Shares are up 34.8% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Lakeland Industries a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Lakeland Industries as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins.

Highlights from TheStreet Ratings analysis on LAKE go as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry. The net income increased by 100.0% when compared to the same quarter one year prior, rising from -$0.84 million to $0.00 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 8.3%. Since the same quarter one year prior, revenues slightly increased by 8.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • LAKELAND INDUSTRIES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past 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.
  • The gross profit margin for LAKELAND INDUSTRIES INC is currently lower than what is desirable, coming in at 31.80%. Regardless of LAKE's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 0.00% trails the industry average.
  • Despite currently having a low debt-to-equity ratio of 0.41, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that LAKE's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.70 is low and demonstrates weak liquidity.

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

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