Lakeland Industries (LAKE) Is Weak On High Volume Today

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.

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 $2.6 million.
  • LAKE has traded 133,643 shares today.
  • LAKE is trading at 16.75 times the normal volume for the stock at this time of day.
  • LAKE is trading at a new low 6.12% 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. manufactures and sells a range of safety garments and accessories for the industrial and public protective clothing market in the United States and internationally. LAKE has a PE ratio of 9. Currently there is 1 analyst that rates Lakeland Industries a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Lakeland Industries has been 105,100 shares per day over the past 30 days. Lakeland has a market cap of $86.3 million and is part of the health care sector and health services industry. The stock has a beta of 0.23 and a short float of 7.7% with 2.27 days to cover. Shares are up 36% year-to-date as of the close of trading on Monday.

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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 revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive.

Highlights from the ratings report include:
  • LAKE's revenue growth has slightly outpaced the industry average of 9.4%. Since the same quarter one year prior, revenues rose by 10.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Compared to its closing price of one year ago, LAKE's share price has jumped by 58.52%, 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's earnings per share declined by 35.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in 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. This year, the market expects an increase in earnings to $0.96 from $0.00.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength 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 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 36.2% when compared to the same quarter one year ago, falling from -$1.84 million to -$2.50 million.

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