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SGUStar Group L.P.Sell5.8·$13.07
SellModerate Confidence
Investment thesis

Star Group L.P. shows an attractive headline valuation (0.46 PEG, best-in-class peer margins) and a bullish technical breakout, but the engine flags it as a potential cyclical trap given the wide forward-vs-trailing P/E gap, three consecutive earnings misses, an expected ~66% earnings decline at a cyclical peak, and a recent news-driven downgrade to a more cautious stance.

Thesis pillars

  • Cyclical Trap Valuation Warning→Stable
  • Consecutive Earnings Misses Cyclical Peak→Stable
  • Earnings Quality Red Flag→Stable
  • +2 more pillars — see the Why tab for full reasoning

Pillars as of Jul 5, 2026, based on the 10-K filed Dec 9, 2025

Full reasoning →

Open full analysis

Star Group L.P. (SGU) Stock Analysis

Breakout setup · Inst Constrain edge

SellVALUE-TRAP 1/5ValueGrowthQualityModerate Confidence

Energy · Oil & Gas Refining & Marketing

Sell if holding. Multiple concerning factors at $13.07: Earnings expected to decline ~61% (cyclical peak); Near 52-week high (3.4% away).

Star Group, L.P., together with its subsidiaries, provides home heating oil and propane products and services to residential and commercial customers in the United States. It offers gasoline and diesel fuel; and installs, maintains, and repairs heating and air conditioning... Read more

$13.07+15.0% A.UpsideScore 5.8/10#11 of 15 Oil & Gas Refining & Marketing
QualityF-score7 / 9FCF yield9.14%
IncomeYield6.04%(5y avg 5.64%)Payout33.15%sustainable
Stop $12.69Default target $15.03A.R:R 0.0:1

Sell if holding. Multiple concerning factors at $13.07: Earnings expected to decline ~61% (cyclical peak); Near 52-week high (3.4% away). Chart setup: Golden cross, above all MAs, RSI 62, MACD bullish. Score 5.8/10, moderate confidence.

Passes 7/8 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 39d clear, semi cycle peak clear, materials cycle peak clear). Suitability: aggressive.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-10-29
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Mon, Dec 7, 202639d to earnings· next earnings call

Thesis

Rewards
Sector modifier (Energy): +1.2
Attractive valuation
Margin of safety: 62%
Risks
Earnings expected to decline ~61% (cyclical peak)
Near 52-week high (3.4% away)
V7 low-quality RISK_OFF penalty: -0.5 (Q=4.4)

Key Metrics

P/E (TTM)5.8
P/E (Fwd)14.9
Mkt Cap$429M
EV/EBITDA4.0
Profit Mgn4.5%
ROE24.1%
Rev Growth17.2%
Beta0.30
Dividend6.04%
Rating analysts5

Quality Signals

Piotroski F7/9MoatNarrow

Options Flow

P/C66.00bearish
IV135%elevated

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy

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About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

1 floor-breaker·1 ceiling hit

Technicals below the gate floor. Component breakdown shows what dragged the score down.static

Bollinger
0.0
Support Resistance
0.8
52w Position
9.9
GatesA.R:R UPSIDE_EXHAUSTED (upside=0.0%)Momentum 6.5>=5.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 39d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARBreakoutSuitability: Aggressive
RSI
62 · Neutral
↑ 20D MA↑ 50D MA↑ 200D MAGOLDEN CROSSSupport $12.47Resistance $13.12

Price Targets

$13
$15
A.R:R0.0:1

Position Sizing

ConvictionNone
Suggested %0%
Max %0%
RegimeRisk-Off

Risk Alerts

! Cyclical trap - fwd PE 15x vs trail 6x (2.6x)
! News modifier -1: HOLD_IF_HOLDING → SELL_IF_HOLDING

Earnings

B
M
M
M
1/4 beats
Next Earnings2026-12-07 (39d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is SGU stock a buy right now?

Sell if holding. Multiple concerning factors at $13.07: Earnings expected to decline ~61% (cyclical peak); Near 52-week high (3.4% away). Chart setup: Golden cross, above all MAs, RSI 62, MACD bullish. Prior stop was $12.69. Score 5.8/10, moderate confidence.

What is the SGU stock price target?

Default target: $15.03 (+15.0% upside). Prior stop was $12.69. Stop-loss: $12.69.

What are the risks of investing in SGU?

Earnings expected to decline ~61% (cyclical peak); Near 52-week high (3.4% away); V7 low-quality RISK_OFF penalty: -0.5 (Q=4.4).

Is SGU overvalued or undervalued?

Star Group L.P. trades at a P/E of 5.8 (forward 14.9). TrendMatrix value score: 8.7/10. Verdict: Sell.

What do analysts say about SGU?

5 analysts cover SGU with a consensus score of 4.0/5.

What does Star Group L.P. do?Star Group, L.P., together with its subsidiaries, provides home heating oil and propane products and services to...

Star Group, L.P., together with its subsidiaries, provides home heating oil and propane products and services to residential and commercial customers in the United States. It offers gasoline and diesel fuel; and installs, maintains, and repairs heating and air conditioning equipment and ancillary services. As of September 30, 2025, the company served approximately 406,400 full-service residential and commercial home heating oil and propane customers and 63,200 customers on a delivery only basis. It sells gasoline and diesel fuel to approximately 27,700 customers. The company was formerly known as Star Gas Partners, L.P. and changed its name to Star Group, L.P. in October 2017. The company was incorporated in 1995 and is based in Stamford, Connecticut.

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