Canada-headquartered Alpha Pro Tech (NYSEAMERICAN:APT) is among the most active businesses in the personal protective equipment (PPE) space. For obvious reasons, the trading volume of APT stock increased in the wake of the coronavirus pandemic last year.
It’s amazing to consider how much has changed since the pandemic came to North America. Vaccines are available to some people, and the sense of panic has subsided somewhat.
Alpha Pro Tech’s skeptics might contend that their business model of making and selling PPE won’t allow for growth in the coming months and years.
The data, however, might paint a different picture. And if we can back up the thesis that Alpha Pro Tech can thrive in a post-pandemic world, then there could be a rare and worthy investment opportunity here.
APT Stock at a Glance
From a technical standpoint, the story of APT stock is quite fascinating. It started off 2020 modestly, clinging to the $3.50 level for a couple of weeks.
In hindsight, we now know that the stock price wasn’t destined to stay at that low level. The share price touched $7 before the end of January 2020, and even hit $25 in February of that year.
It wasn’t exactly smooth sailing after that, as APT stock swung down to the $10 area in June before blasting back up to around $25 in August.
The remainder of the year was marked by more sizable price swings. Fast-forward to March 19 of this year, and we can observe that the stock price was back down to $10.75.
On that same day, the trailing 12-month price-to-earnings ratio of APT stock was 5.54x. This suggests that the stock price was low compared to Alpha Pro Tech’s earnings per share.
That’s one thing that long-term investors should keep an eye out for: a stock that’s trading at a reasonable valuation. But again, the doubters will raise the question of whether there’s still going to be a market for PPE.
Tracking the PPE Market
Yet, those doubters’ concerns can be quelled simply by looking at the experts’ projections.
According to Grand View Research, the global PPE market size was valued at $77.36 billion in 2020. But then, prospective Alpha Pro Tech investors will want to know whether the industry will scale up in the future.
The answer is yes, it absolutely will. As Grand View Research reports, that same global PPE market is anticipated to grow at a compound annual growth rate (CAGR) of 7.3% during the time frame of 2020 to 2028.
Moreover, in 2028, that market is expected to increase to a whopping $112.07 billion.
Alpha Pro Tech is already a known and respected name in this niche. The company manufactures not only face masks and shields, but also protective equipment to cover practically every part of you, from your sleeves to your shoes.
Multiple Records
So, we’ve established that there’s plenty of money to be made in PPE. But then, has Alpha Pro Tech been successful in capitalizing on this opportunity?
Again, the answer is a definite yes. This is proven through the company’s recently reported fiscal data, which indicates both an exceptional full-year 2020 as well as a very strong fourth quarter.
In fact, for the fourth quarter, Alpha Pro Tech reported record net sales of $29 million, as well as record net income of $7.4 million.
Starting to see a pattern here? It’s one record after another. Plus, the full year of 2020 yielded multiple records for Alpha Pro Tech:
- Net sales of $102.7 million
- Net income of $27.1 million
- Face mask sales of $41.8 million
The Takeaway
Alpha Pro Tech shares are super cheap now, and don’t necessarily reflect the value of a company that’s posting blockbuster PPE sales.
Therefore, if you’d like to align your portfolio with the fast-growing PPE market, consider a position in APT stock.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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