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Here's Why Superior Group (SGC) Fell More Than Broader Market

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Superior Group (SGC - Free Report) ended the recent trading session at $10.89, demonstrating a -1.8% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.5%. Meanwhile, the Dow lost 0.38%, and the Nasdaq, a tech-heavy index, lost 0.5%.

The uniform maker's stock has dropped by 17.91% in the past month, falling short of the Consumer Discretionary sector's loss of 0.89% and the S&P 500's gain of 2.74%.

The investment community will be paying close attention to the earnings performance of Superior Group in its upcoming release. The company's upcoming EPS is projected at $0.22, signifying a 33.33% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $144.42 million, down 3.52% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.47 per share and a revenue of $571.54 million, representing changes of -35.62% and +1.04%, respectively, from the prior year.

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 such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Superior Group holds a Zacks Rank of #3 (Hold).

In terms of valuation, Superior Group is presently being traded at a Forward P/E ratio of 23.43. This expresses a premium compared to the average Forward P/E of 15.53 of its industry.

We can additionally observe that SGC currently boasts a PEG ratio of 2.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Textile - Apparel industry held an average PEG ratio of 2.34.

The Textile - Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 185, placing it within the bottom 26% of over 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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