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Signet (SIG) Advances But Underperforms Market: Key Facts

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The latest trading session saw Signet (SIG - Free Report) ending at $100.83, denoting a +0.04% adjustment from its last day's close. The stock lagged the S&P 500's daily gain of 0.4%. Meanwhile, the Dow experienced a rise of 0.09%, and the technology-dominated Nasdaq saw an increase of 0.63%.

Shares of the jewelry company have appreciated by 3.74% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 3.32% and lagging the S&P 500's gain of 3.76%.

The upcoming earnings release of Signet will be of great interest to investors. It is anticipated that the company will report an EPS of $0.29, marking a 20.83% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.36 billion, indicating a 2% decrease compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.80 per share and a revenue of $6.84 billion, indicating changes of +4.15% and -4.59%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for Signet. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Signet is currently sporting a Zacks Rank of #3 (Hold).

Looking at valuation, Signet is presently trading at a Forward P/E ratio of 9.34. For comparison, its industry has an average Forward P/E of 20.55, which means Signet is trading at a discount to the group.

It's also important to note that SIG currently trades at a PEG ratio of 1.14. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Retail - Jewelry industry stood at 2.13 at the close of the market yesterday.

The Retail - Jewelry industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 226, this industry ranks in the bottom 11% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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