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Signet (SIG) closed the most recent trading day at $109.13, moving +0.89% from the previous trading session. This move outpaced the S&P 500’s daily loss of 0.46%. Meanwhile, the Dow lost 0.7%, and the Nasdaq, a tech-heavy index, lost 0.68%.
Coming into today, shares of the jewelry company had gained 20.09% in the past month. In that same time, the Retail-Wholesale sector gained 2.35%, while the S&P 500 gained 4.05%.
Investors will be hoping for strength from Signet as it approaches its next earnings release, which is expected to be December 2, 2021. On that day, Signet is projected to report earnings of $0.67 per share, which would represent year-over-year growth of 509.09%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.45 billion, up 11.59% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.07 per share and revenue of $7.16 billion. These totals would mark changes of +377.25% and +36.93%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Signet. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Signet is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note Signet’s current valuation metrics, including its Forward P/E ratio of 10.74. For comparison, its industry has an average Forward P/E of 18.92, which means Signet is trading at a discount to the group.
Investors should also note that SIG has a PEG ratio of 1.34 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. The Retail – Jewelry was holding an average PEG ratio of 1.34 at yesterday’s closing price.
The Retail – Jewelry industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 22, putting it in the top 9% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Signet Jewelers Limited (SIG): Free Stock Analysis Report
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