Last Updated: 07 Nov 2024
Executive Summary
Lakeland Industries Inc. (LAKE) is a leading manufacturer of industrial protective clothing and accessories. Despite facing challenges in recent quarters, the company remains financially sound with a strong balance sheet and positive cash flow. Analysts maintain a bullish outlook on LAKE, with a target price of $27, suggesting a potential upside of over 33%.
Company Overview
Headquartered in Decatur, Alabama, Lakeland Industries serves the industrial and public protective clothing markets worldwide. The company's products include disposable and reusable protective suits, gloves, boots, and other accessories designed to protect workers from hazardous materials and environments.
Fundamental Analysis
Revenue: LAKE's revenue for the trailing twelve months (TTM) is $137.7 million, showing a modest growth of 0.165% year-over-year.
Earnings: The company reported diluted earnings per share (EPS) of $0.27 for the TTM, representing a 0.222% increase from the previous year.
Profitability: Lakeland's profit margin is 1.39%, while its operating margin is -0.0231%.
Valuation: The stock is currently trading at a price-to-earnings (PE) ratio of 75.81, which is significantly higher than the industry average.
Dividend: LAKE pays a quarterly dividend of $0.12 per share, resulting in a dividend yield of 0.0061%.
Technical Analysis
Moving Averages: The stock's 50-day moving average is $20.6, while its 200-day moving average is $19.7.
Support and Resistance: The stock has support at $19.5 and resistance at $21.5.
Momentum: The relative strength index (RSI) is at 49, indicating neutral momentum.
Short Term Outlook
In the short term, LAKE is expected to continue trading within its current range. The stock may face some resistance at its current price, but a breakout above $21.5 could lead to further gains.
Long Term Outlook
Analysts are optimistic about Lakeland Industries' long-term prospects. The company's strong brand recognition, diversified product portfolio, and focus on innovation are expected to drive growth in the years to come.
Analyst Recommendations
Of the analysts covering LAKE, two have a "Buy" rating, while none have a "Strong Buy," "Hold," "Sell," or "Strong Sell" rating. The consensus analyst target price is $27, implying a potential upside of 33.6%.
