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Lakeland Industries (LAKE) Gains But Lags Market: What You Should Know

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Lakeland Industries (LAKE - Free Report) closed the most recent trading day at $29.15, moving +0.21% from the previous trading session. This move lagged the S&P 500's daily gain of 1.95%. Meanwhile, the Dow gained 1.85%, and the Nasdaq, a tech-heavy index, added 1.55%.

Heading into today, shares of the safety garments manufacturer had lost 14.52% over the past month, lagging the Industrial Products sector's gain of 2.07% and the S&P 500's loss of 2.45% in that time.

Investors will be hoping for strength from LAKE as it approaches its next earnings release. The company is expected to report EPS of $0.72, up 380% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $35.8 million, up 26.95% from the year-ago period.

Investors might also notice recent changes to analyst estimates for LAKE. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. LAKE currently has a Zacks Rank of #3 (Hold).

Digging into valuation, LAKE currently has a Forward P/E ratio of 15.81. For comparison, its industry has an average Forward P/E of 22.75, which means LAKE is trading at a discount to the group.

The Security and Safety Services industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 69, putting it in the top 28% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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