Superior Group (SGC) Laps the Stock Market: Here's Why

Zacks
07-11

Superior Group (SGC) ended the recent trading session at $11.12, demonstrating a +2.39% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.28%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.09%.

Heading into today, shares of the uniform maker had gained 3.13% over the past month, lagging the Consumer Discretionary sector's gain of 5.57% and the S&P 500's gain of 4.37%.

The upcoming earnings release of Superior Group will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.07, reflecting a 75% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $135.03 million, up 2.5% from the year-ago period.

SGC's full-year Zacks Consensus Estimates are calling for earnings of $0.49 per share and revenue of $559.79 million. These results would represent year-over-year changes of -32.88% and -1.04%, respectively.

Investors might also notice recent changes to analyst estimates for Superior Group. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Superior Group boasts a Zacks Rank of #4 (Sell).

Investors should also note Superior Group's current valuation metrics, including its Forward P/E ratio of 22.05. This represents a premium compared to its industry average Forward P/E of 14.43.

Meanwhile, SGC's PEG ratio is currently 2.21. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Textile - Apparel industry currently had an average PEG ratio of 2.09 as of yesterday's close.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 219, putting it in the bottom 12% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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Superior Group of Companies, Inc. (SGC) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

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