Why Lakeland Industries (LAKE) Stock Skyrocketed Today

NEW YORK (TheStreet) -- Shares of protective equipment manufacturer Lakeland Industries Inc  (LAKE)  skyrocketed 16.22% to close at $15.26 today, after the New York City Department of Health and Mental Hygiene confirmed that a health care worker is being tested for Ebola.

In a statement, the department said: "Today, EMS HAZ TAC Units transferred to Bellevue Hospital a patient who presented a fever and gastrointestinal symptoms. "

The DOHMH added that the patient is a health care worker who returned to the U.S. within the past 21 days from one of the three countries currently facing the outbreak of this virus, and was transported by a specially trained HAZ TAC unit wearing personal protective equipment.

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

After consulting with the hospital and the Centers for Disease Control, DOHMH said it has decided to conduct a test for the Ebola virus due to the patient's recent travel history, pattern of symptoms, and past work.

Lakeland Industries manufactures and sells a line of safety garments and accessories for the industrial protective clothing markets, including gear that healthcare workers can use to prevent contracting the Ebola virus. The company announced global availability of the suits in September.

Shares of Lakeland Industries are lower by 1.7% to $15 in after-hours trading.

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

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

More from Markets

Is Nvidia Still Tech's Most Explosive Stock? A Bull and Bear Debate

Is Nvidia Still Tech's Most Explosive Stock? A Bull and Bear Debate

Nvidia, Nordstrom, Elon Musk and Google - 5 Things You Must Know

Nvidia, Nordstrom, Elon Musk and Google - 5 Things You Must Know

Stock Futures Edge Lower Amid Disappointing Tech Guidance

Stock Futures Edge Lower Amid Disappointing Tech Guidance

3 Growing Risks That Could Blow Up Your Stock Portfolio Before 2019

3 Growing Risks That Could Blow Up Your Stock Portfolio Before 2019

Elon Musk Tells New York Times Tweet Was Attempt at Transparency

Elon Musk Tells New York Times Tweet Was Attempt at Transparency