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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 at $11.26 in the latest trading session, marking a -5.85% move from the prior day. This move lagged the S&P 500's daily gain of 0.49%. Meanwhile, the Dow gained 0.38%, and the Nasdaq, a tech-heavy index, added 0.72%.

Coming into today, shares of the uniform maker had lost 3.08% in the past month. In that same time, the Consumer Discretionary sector gained 1.34%, while the S&P 500 gained 2.99%.

Market participants will be closely following the financial results of Superior Group in its upcoming release. The company's earnings per share (EPS) are projected to be $0.22, reflecting a 33.33% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $144.42 million, showing a 3.52% drop compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.47 per share and a revenue of $571.54 million, signifying shifts of -35.62% and +1.04%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for Superior Group. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, Superior Group is carrying a Zacks Rank of #3 (Hold).

Looking at valuation, Superior Group is presently trading at a Forward P/E ratio of 25.27. This valuation marks a premium compared to its industry average Forward P/E of 16.03.

One should further note that SGC currently holds a PEG ratio of 2.53. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Textile - Apparel industry stood at 2.53 at the close of the market yesterday.

The Textile - Apparel industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 169, positioning it in the bottom 32% 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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