Superior Group (SGC) Stock Drops Despite Market Gains: Important Facts to Note
Shares of the uniform maker have appreciated by 7.51% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 4.15%, and the S&P 500's gain of 4.2%.
Analysts and investors alike will be keeping a close eye on the performance of Superior Group in its upcoming earnings disclosure. The company is expected to report EPS of $0.05, up 25% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $134.2 million, up 1.86% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.41 per share and revenue of $559.79 million. These totals would mark changes of -43.84% and -1.04%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Superior Group. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Superior Group currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Superior Group is holding a Forward P/E ratio of 26.41. This denotes a premium relative to the industry average Forward P/E of 14.28.
It is also worth noting that SGC currently has a PEG ratio of 2.64. 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 was holding an average PEG ratio of 2.03 at yesterday's closing price.
The Textile - Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 222, placing it within the bottom 11% of over 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Superior Group of Companies, Inc. (SGC) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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