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

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Superior Group (SGC - Free Report) closed the latest trading day at $14.02, indicating a +0.72% change from the previous session's end. The stock exceeded the S&P 500, which registered a gain of 0.45% for the day. Meanwhile, the Dow experienced a drop of 0.23%, and the technology-dominated Nasdaq saw an increase of 0.84%.

Shares of the uniform maker have appreciated by 6.99% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 3.49% and the S&P 500's gain of 2.54%.

Market participants will be closely following the financial results of Superior Group in its upcoming release. The company's upcoming EPS is projected at $0.19, signifying steadiness compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $142.56 million, showing a 4.72% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $0.74 per share and a revenue of $563.92 million, demonstrating changes of +37.04% and +3.79%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for Superior Group. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.34% decrease. Right now, Superior Group possesses a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Superior Group has a Forward P/E ratio of 18.9 right now. This indicates a premium in contrast to its industry's Forward P/E of 16.32.

Meanwhile, SGC's PEG ratio is currently 1.89. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Textile - Apparel was holding an average PEG ratio of 1.88 at yesterday's closing price.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 178, finds itself in the bottom 30% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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