Zacks Investment Research upgraded Lakeland Industries Inc. (LAKE - Free Report) to a Zacks Rank #1 (Strong Buy) on Sep 24, 2016. Going by the Zacks model, companies sporting a Zacks Rank #1 have strong chances of outperforming the broader market in the near term.
Why the Upgrade?
Market sentiments have been favoring Lakeland Industries since the release of its second-quarter fiscal 2017 (ended Jul 2016) results on Sep 14. The company’s share price has risen roughly 7.6% since then. Earnings surprise in the quarter was a positive 150% as earnings of 20 cents per share exceeded the Zacks Consensus Estimate of 8 cents.
Lakeland Industries is focused on increasing its market share through implementation of several growth driving initiatives in new vertical markets and among governmental and multinational end users. The company hopes to boost its sales and profitability, despite several market related headwinds. Also, Lakeland Industries aims at a sound capital allocation policy of rewarding its shareholders handsomely. In the second quarter, the company announced a $2.5 million stock repurchase program.
Impressive results and outlook have made investors optimistic about Lakeland Industries’ prospects. Over the last 60 days, the Zacks Consensus Estimate for Lakeland Industries increased by 42.5% to 57 cents per share for fiscal 2017 and by 6.6% to 81 cents for fiscal 2018. Also, the estimate for the third quarter has grown roughly 18.8% to 19 cents.
Other Stocks to Consider
Lakeland Industries Inc. currently has a market capitalization of $74 million. Other stocks worth mentioning in the protection industry include Alarm.Com Holdings, Inc. (ALRM - Free Report) , Ascent Capital Group, Inc. (ASCMA - Free Report) and Napco Security Technologies, Inc .
Alarm.Com Holdings, a Zacks Rank #2 (Buy) stock, has reported better-than-expected results in the last four quarters, with a positive average surprise of 450.56%. Also, the stock has witnessed upward estimate revisions over the past 60 days.
Ascent Capital Group carries a Zacks Rank #2. The loss per share expectations for 2016 and 2017 has been reduced over the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Napco Security Technologies, a Zacks Rank #2 stock, has witnessed positive revisions in earnings estimates for 2016 over the past 60 days.
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