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Why Signet (SIG) Dipped More Than Broader Market Today

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In the latest trading session, Signet (SIG - Free Report) closed at $59.54, marking a -1.51% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 1.46%. At the same time, the Dow added 0.65%, and the tech-heavy Nasdaq lost 3.07%.

Prior to today's trading, shares of the jewelry company had lost 26.25% over the past month. This has lagged the Retail-Wholesale sector's gain of 2.27% and the S&P 500's gain of 1.08% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Signet in its upcoming earnings disclosure. The company is predicted to post an EPS of $6.39, indicating a 5.05% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $2.33 billion, reflecting a 6.71% fall from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.73 per share and revenue of $6.68 billion, indicating changes of -15.81% and -6.83%, respectively, compared to the previous year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Signet. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 11.6% lower. Right now, Signet possesses a Zacks Rank of #5 (Strong Sell).

Looking at its valuation, Signet is holding a Forward P/E ratio of 6.92. This indicates a discount in contrast to its industry's Forward P/E of 21.71.

It's also important to note that SIG currently trades at a PEG ratio of 3.91. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Retail - Jewelry stocks are, on average, holding a PEG ratio of 4.29 based on yesterday's closing prices.

The Retail - Jewelry industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 216, positioning it in the bottom 14% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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