(NEW YORK)--With new coronavirus cases spiking in parts of the US now may be time to revisit face mask and PPE providers for possible play on renewed COVID-19 outbreak.
Recent data shows coronavirus cases are starting spiking in several US states including Utah, Arizona, Texas, Florida, and North Carolina. With protests continuing across the US we could see an even bigger spike in COVID-19 cases in the coming days, which could put Personal Protective Equipment (PPE) stocks back on trader wish list.
Below are three face mask and PPE providers traders should watch.
Lakeland Industries (LAKE)
Lakeland recently saw its stock soar after reporting that sales and profits for their protective gear remained strong amid the ongoing Covid-19 outbreak. Now with data showing a new spike in Coronavirus cases in several US states the outlook for demand for PPE may have only increased that much more.
Lakeland CEO Charles Roberson commented that, "Our fiscal 2021 first quarter performance was extraordinary with record setting financial results that validate our belief that owning our own manufacturing and having a resilient supply chain are essential to being a global leader in the PPE (personal protection equipment) market."
Alpha Pro Tech (APT)
The postive news from LAKE helped spill over to this other popular face mask and PPE provider, Alpha Pro Tech. In April, APT saw its stock soared after seeing an "exponential" jump in orders even into 2021.
Ludlow Research made note to their subscribers that LAKE positive earnings, positive demand for face masks and PPE, and increased cases of COVID-19 in Western US could put APT in-play in the short-term. The firm issued a speculative target fo $20+ based on growing cases of COVID-19, strong product demand outlook, and potential increase in retail demand from traders.
GTX Corp (GTXO)
GTXO recently announce that the Company's GPS SmartSole and Personal Protective Equipment (PPE) products were now available for purchase on the General Services Administration (GSA) Schedule. As a member of the SoCal Bio Partnership for Pandemics Countermeasure Taskforce, GTXO is using its extensive manufacturing experience to source and distribute U.S. Food and Drug Administration ('FDA') and European CE mark certified PPE across its wide network of channel partners in order to make available products that are in high demand.
While many traders were riding the reopening plays, which were great traders to say the least, the renewed spike on COVID-19 cases could swing retail interest out of those plays and back towards COVID plays, such as face mask and PPE providers.
How far these new cases increase is yet to be determined, but with recent re openings and protests across the country we could see cases increase faster in coming days, which could put renewed buyer interest in this sector.
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