The Best Nuclear Armageddon Pure-Play In The Market?

In a new report, Singular Research analyst Rishabh Jain explains why investors don’t need to wait until the apocalypse to buy Lakeland Industries, Inc. LAKE. Lakeland designs and manufactures protective clothing for disaster situations, including chemical, heat, and flame resistant protective gear.

“LAKE has become a go-to manufacturer in crisis situations, owing to its ability to deliver high quality product on very short notice,” Jain explains.

Related Link: How Has The Market Selloff Changed The Fundamentals Of Tech Giants?

Jain also likes Lakeland’s limited competition and consistent market share gains in recent years. Because of the small market, Lakeland also enjoys strong pricing power for its products which has allowed the company to pad its margins. Jain also points out that this pricing power allows Lakeland to raise prices during times of high demand.

Despite forex headwinds and major slowdown in the global oil & gas market, Lakeland has also demonstrated consistently strong revenue and earnings growth and is now well-positioned for the eventual recovery of the oil market. Jain also notes that any number of unexpected global emergencies could also serve as an instant catalyst for the stock.

Finally, the company’s decision to withdraw from the Brazil market, where it lost $34 million in the past three years, has removed a significant thorn in its side.

Singular has initiated Lakeland with a Buy rating and set a $17.50 price target for the stock.

LAKE