Lakeland Industries (LAKE) Weak On High Volume

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.

Trade-Ideas LLC identified Lakeland Industries ( LAKE) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Lakeland Industries as such a stock due to the following factors:

  • LAKE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.7 million.
  • LAKE has traded 425,522 shares today.
  • LAKE is trading at 2.05 times the normal volume for the stock at this time of day.
  • LAKE is trading at a new low 10.20% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on LAKE:

Lakeland Industries, Inc., together with its subsidiaries, manufactures and sells safety garments and accessories for the industrial protective clothing market worldwide.

The average volume for Lakeland Industries has been 3.9 million shares per day over the past 30 days. Lakeland has a market cap of $60.3 million and is part of the health care sector and health services industry. The stock has a beta of 0.22 and a short float of 29.4% with 0.90 days to cover. Shares are up 113.5% year-to-date as of the close of trading on Tuesday.

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

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Lakeland Industries as a hold. 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 ratings report include:
  • Compared to its closing price of one year ago, LAKE's share price has jumped by 122.22%, 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.

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

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