Why Lakeland Industries (LAKE) Stock Is Plunging Today

NEW YORK (TheStreet) -- Shares of protective equipment manufacturer Lakeland Industries  (LAKE) plunged 14.02% to $14.60 on Monday after a Dallas judge confirmed 43 people who came into contact with Ebola patient Thomas Eric Duncan had been officially cleared after 21 days without symptoms.

Dallas County Judge Clay Jenkins, who is overseeing response efforts in the Texas city, said another person would be cleared Monday and four others would soon be cleared after the 21-day monitoring period.

The World Health Organization also announced Nigeria and Senegal are now free of the Ebola virus.

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Lakeland makes hazmat suits that healthcare workers can use to prevent contracting the Ebola virus. The company announced global availability of the suits in September.

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 300.19%, 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

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