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Is Lakeland Industries (LAKE) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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 to watch right now is Lakeland Industries (LAKE). LAKE is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 20.44 right now. For comparison, its industry sports an average P/E of 20.86. Over the last 12 months, LAKE's Forward P/E has been as high as 37.98 and as low as 12.56, with a median of 17.56.

Investors should also recognize that LAKE has a P/B ratio of 1.53. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.14. LAKE's P/B has been as high as 1.99 and as low as 0.95, with a median of 1.10, over the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. LAKE has a P/S ratio of 1.22. This compares to its industry's average P/S of 1.63.

Value investors will likely look at more than just these metrics, but the above data helps show that Lakeland Industries is likely undervalued currently. And when considering the strength of its earnings outlook, LAKE sticks out at as one of the market's strongest value stocks.


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