Share price of protective-clothes maker Lakeland Industries Inc. (LAKE) has surged 31.9% over the last 2 days and 15.9% in the last 24 hours alone, to eventually close at $11.62 yesterday. The strong upside came soon after the death of the first patient diagnosed with the Ebola virus in the U.S.
Lakeland produces hazmat suits that healthcare providers wear while treating patients detected with infectious diseases. With the alarming outbreak of the Ebola virus, demand for such suits is bound to experience a further upswing. The speculated demand rise can be seen as a logical explanation of the company's shares trending upward.
Per reliable sources, the Liberian national diagnosed with Ebola last month had succumbed to death soon after reaching Texas. He had been kept in a hospital's isolation room in Dallas for almost two weeks.
So far, the deadly virus has claimed 3,865 lives, mostly in Liberia, Sierra Leone and Guinea in the latest Ebola outbreak in West Africa. This is being considered the largest and most complex outbreak since the virus was first discovered in 1976.
Unfortunately, no vaccine for Ebola virus is available yet. During the current outbreak, already, approximately 55% of those infected with the virus have been killed. On Aug 8, the Director-General of World Health Organization (WHO) declared the Ebola outbreak a Public Health Emergency of International Concern.
Based on its diverse global operations and the versatile range of its protective apparels, management expects demand for its hazmat suits to gain accretion, up from current numbers experienced in the international market. Notably, last month, Lakeland increased its manufacturing capacity in response to the increasing demand for hazmat suits being used by health workers handling patients infected with the Ebola virus.
Stocks to Consider
Some well-placed stocks worth considering in the medical sector are ICU Medical, Inc. (ICUI), OraSure Technologies, Inc. (OSUR) and ZELTIQ Aesthetics, Inc. (ZLTQ). All three sport a Zacks Rank #1 (Strong Buy).
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