Are Investors Undervaluing Lakeland Industries (LAKE) Right Now?

LAKE

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is Lakeland Industries (LAKE - Free Report) . LAKE is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 9.41, which compares to its industry's average of 19.10. Over the past 52 weeks, LAKE's Forward P/E has been as high as 16.11 and as low as 9.02, with a median of 13.36.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. LAKE has a P/S ratio of 1. This compares to its industry's average P/S of 1.74.

These are only a few of the key metrics included in Lakeland Industries's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, LAKE looks like an impressive value stock at the moment.

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