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Superior Group (SGC) Stock Sinks As Market Gains: Here's Why

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Superior Group (SGC - Free Report) closed the most recent trading day at $15.78, moving -0.5% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 1%. Meanwhile, the Dow gained 0.78%, and the Nasdaq, a tech-heavy index, added 1.51%.

The uniform maker's shares have seen a decrease of 2.7% over the last month, surpassing the Consumer Discretionary sector's loss of 4.58% and falling behind the S&P 500's loss of 2.14%.

Analysts and investors alike will be keeping a close eye on the performance of Superior Group in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.18, showcasing a 18.18% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $146.16 million, showing a 0.73% drop compared to the year-ago quarter.

It's also important for investors to be aware of any recent modifications to analyst estimates for Superior Group. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Superior Group boasts a Zacks Rank of #3 (Hold).

Looking at valuation, Superior Group is presently trading at a Forward P/E ratio of 16.43. This expresses a premium compared to the average Forward P/E of 16.08 of its industry.

Meanwhile, SGC's PEG ratio is currently 1.64. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Textile - Apparel was holding an average PEG ratio of 1.79 at yesterday's closing price.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 50, putting it in the top 20% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow SGC in the coming trading sessions, be sure to utilize Zacks.com.


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