Daily Stock Analysis: Superior Group

A new portfolio of stocks I started building September 8, at a one stock per week pace for the next year, is named Vista.  I will select its fifth stock this coming weekend. Vista is the sixth portfolio I've built (at a one dividend dog per-week pace) since 2014. Six portfolios = VI for Vista!

Vista is planned to Look Ahead for Outstanding, Proven, Dividend Winners. (Like Aristocrats)

Today we'll review the fourth of five consumer cyclical sector stock candidates vying to be the sixth selection for the Vista portfolio.

My subject today is a small-cap apparel manufacturer, Superior Group of Companies Inc. Its trading ticker symbol is SGC. This is my first report on Superior Group of Companies Inc for this Vista dog of the week portfolio. In late May I selected it for the Volio portfolio, however.  

Superior Group Of Companies Inc is engaged in the designing, manufacturing, and distribution of uniforms to major domestic retailers, foodservice chains, transportation, and other service industries. 

It provides customer-specific uniform eStores, custom Image apparel, corporate identity apparel, career apparel, and accessories including remote staffing solution and call center operations for the medical and health fields also for industrial, commercial, and leisure. 

The three operating business segments are Uniforms and Related Product, Remote Staffing Solutions, and Promotional Products. 

The company markets its products under the brand names of Fashion Seal Healthcare, HPI Direct, Superior I.D., and UniVogue. Most of its revenue comes from the Uniforms business.

The company was formerly known as Superior Uniform Group, Inc. and changed its name to Superior Group of Companies, Inc. in May 2018.

Superior Group of Companies, Inc. was founded in 1920 and is headquartered in Seminole, Florida.

I use three key data points to gauge dividend equities or funds like Superior Group of Companies Inc:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether a company has made, is making, and will make money. 

SGC Price

Superior's price per share closed at $24.79 yesterday. A year ago its price was $15.74. Price rose $5.05 or just over 32% last year.

If Superior's stock trades in the range of $5 to $30 this next year, its recent $24.79 price might rise by $2.21 to reach $27.00 by October 15, 2021. 

SGC Dividends

Superior's most recently declared quarterly dividend was $0.10 paid on August 25th. Dividends are estimated to total $0.40 per share annually and yield 1.61% at yesterday's $24.79 closing price.

SGC Gains?

Adding the $0.40 annual anticipated dividend to my $2.21 optimistic estimate of Superior's price upside shows a $2.61 potential gross gain, per share, to be reduced by any costs to trade the shares.  

If we put little under $1,000.00 today in Superior Group of Companies Inc (SGC) at $24.79, we would buy 40 shares of SGC stock.

A $10 broker fee paid half at purchase and half at sale would cost us $0.25 per share.

Subtract that $0.25 brokerage cost from my estimated $2.61 gross gain per share results in a net gain of $2.36 X 40 shares = $94.40 for a 9.44% net gain on a $991.60 investment.

So it goes that Superior Group of Companies Inc shows a possible 9.44% net gain including a 1.61% dividend yield. It could be more, it could be less. 

All of the estimates above are speculation based on the past history of Superior Group of Companies Inc. Only time and money invested in this stock will determine its worth.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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