Lakeland Industries (LAKE) is a Zacks Rank #1 (Strong Buy) that has a D for Value and a D for Growth. This company makes suits used in clean ups big and small. Their products range from toxic waste clean up garments to Fireland Fyrepel products that are used for fire and heat protection. The company also makes special safety gloves and medical woven cloth garments. Let’s learn more about why this stock is the Bull of the Day.
Description
Lakeland Industries, Inc. engages in the manufacture and sale of safety garments and accessories for the industrial and public protective clothing market. It operates through the Domestic and International geographical segments. The firm's products include disposable protective clothing, chemical protective clothing, woven protective clothing, fire protective gear, heat protective clothing, reflective protective clothing, hand and arm protection, arc or fire-retardant rated rainwear, and fire-retardant protective clothing. The company was founded in April 1982 and is headquartered in Huntsville, AL.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
Lakeland Industries (LAKE ) has missed the Zacks Consensus Estimate in three of the last four quarters. The company most recently posted EPS of $0.36 per share when the Zacks Consensus Estimate was calling for a loss of $0.04. That 40 cent beat translates into a 1000% positive earnings surprise.
Over the last four quarters the average positive surprise works out to be 106%.
Earnings Estimates Revisions
Earnings estimate revisions is what the Zacks Rank is all about.
Estimates are moving higher for Lakeland Industries (LAKE).
The full year 2025 has increased from $0.18 to $0.50 over the last 60 days.
2026 has increased from $1.23 to $1.28 over the same time period.
Growth
There is good growth projected for Lakeland Industries (LAKE). This fiscal year analysts are expecting $213M in revenue which would be good for 27% topline growth.
Next fiscal year, the consensus is calling for $240 M and that would be good for 12.7% sales growth.
Valuation
The valuation for Lakeland Industries (LAKE) is compelling in terms of price to book. I see a price to book multiple of 1.06x which means investors are barely paying a premium over the cost of the assets on hand. The forward PE if 32x is a little high, but the growth the company is expected to show makes up for that high multiple. Price to sales comes in at 0.82x which suggests the market doesn’t give the company full credit for each dollar of sales the company posts. Part of the reason for that is the negative operating margins the company has shown over the last few quarters.
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Lakeland Industries, Inc. (LAKE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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