Strong On High Volume: Lakeland Industries (LAKE)

Trade-Ideas LLC identified Lakeland Industries ( LAKE) as a strong 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 $5.3 million.
  • LAKE has traded 55,362 shares today.
  • LAKE is trading at 6.10 times the normal volume for the stock at this time of day.
  • LAKE is trading at a new high 3.22% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 7. 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 91,400 shares per day over the past 30 days. Lakeland has a market cap of $100.5 million and is part of the health care sector and health services industry. The stock has a beta of 0.55 and a short float of 6.6% with 1.26 days to cover. Shares are up 59.2% year-to-date as of the close of trading on Wednesday.

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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 robust revenue growth, solid stock price performance and notable return on equity. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 9.9%. Since the same quarter one year prior, revenues rose by 29.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 455.55% and other important driving factors, this stock has surged by 60.34% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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.
  • LAKE's debt-to-equity ratio is very low at 0.18 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.88 is somewhat weak and could be cause for future problems.
  • 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, LAKELAND INDUSTRIES INC increased its bottom line by earning $1.31 versus $0.00 in the prior year. For the next year, the market is expecting a contraction of 23.7% in earnings ($1.00 versus $1.31).
  • Net operating cash flow has decreased to -$2.76 million or 45.08% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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