Superior Group: Earnings Performance and Stock Outlook

A recent report highlights Superior Group's upcoming earnings, with expectations of no growth in EPS and a revenue increase. The company's stock performance lags behind the sector, while analysts maintain a cautious outlook indicated by a Zacks Rank of 'Sell'.

Date: 05-10-2024

AI Rating: 5

In the latest report, Superior Group (SGC) closed at $15.08, marking a daily increase of +0.8%. However, this performance lags behind the S&P 500's daily gain of 0.9%. Over the past month, SGC’s stock has appreciated by 3.31%, which is less than the Consumer Discretionary sector's gain of 4.88%.

Investors will be particularly attentive to the upcoming earnings report, where analysts predict earnings of $0.19 per share, reflecting no growth from the previous year. The consensus revenue estimate is $142.56 million, indicating a 4.72% year-over-year increase.

The full-year projections from Zacks Consensus Estimates indicate expected earnings of $0.74 per share and total revenue of $563.94 million, signifying year-over-year growth of +37.04% in earnings and +3.8% in revenue, respectively.

Additionally, SGC currently holds a Zacks Rank of #4 (Sell), a sign of caution as there have been no recent improvements in the EPS estimates. The Zacks model's adjustments typically reflect on the stock's future performance, hinting at a potential negative outlook for SGC.

From a valuation standpoint, Superior Group is trading at a Forward P/E ratio of 20.31, which indicates it is trading at a premium when compared to the industry average Forward P/E of 18.77. This could be seen as a potential contributing factor for investor hesitation. Furthermore, SGC has a PEG ratio of 2.03, aligning with the sector’s average.

In conclusion, while there are expectations for modest revenue growth, the lack of improvement in earnings projections combined with a Zacks Rank of 'Sell' and a relatively high P/E ratio creates a cautious environment for investors, potentially leading to subdued stock performance in the near term.

Stocks: SGC