Advertisement
New Zealand markets closed

  • NZX 50

    11,805.09
    -141.34 (-1.18%)
     

  • NZD/USD

    0.5959
    +0.0009 (+0.15%)
     

  • NZD/EUR

    0.5550
    +0.0010 (+0.17%)
     

  • ALL ORDS

    7,837.40
    -100.10 (-1.26%)
     

  • ASX 200

    7,575.90
    -107.10 (-1.39%)
     

  • OIL

    84.11
    +0.54 (+0.65%)
     

  • GOLD

    2,352.70
    +10.20 (+0.44%)
     

  • NASDAQ

    17,430.50
    -96.30 (-0.55%)
     

  • FTSE

    8,078.86
    0.00 (0.00%)
     

  • Dow Jones

    38,085.80
    -375.12 (-0.98%)
     

  • DAX

    17,917.28
    -171.42 (-0.95%)
     

  • Hang Seng

    17,660.31
    +375.77 (+2.17%)
     

  • NIKKEI 225

    37,934.76
    +306.28 (+0.81%)
     

  • NZD/JPY

    93.2900
    +0.7940 (+0.86%)
     

Falling Earnings Estimates Signal Weakness Ahead for Signet Jewelers (SIG)

Zacks Equity Research
Updated

Similar to wise buying decisions, exiting certain underperformers at the right time helps maximize portfolio returns. Selling off losers can be difficult, but if both the share price and estimates are falling, it could be time to get rid of the security before more losses hit your portfolio.

One such stock that you may want to consider dropping is Signet Jewelers Limited SIG, which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year. A Zacks Rank #5 (Strong Sell) further confirms weakness in SIG.

A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen four estimates moving down in the past 30 days, compared with just one upward revision. This trend has caused the consensus estimate to trend lower, going from $7.15 a share a month ago to its current level of $6.42.

Also, for the current quarter, Signet Jewelers has seen two downward estimate revisions versus one revision in the opposite direction, dragging the consensus estimate down to $4.17 a share from $4.50 over the past 30 days.  

ADVERTISEMENT

The stock also has seen some pretty dismal trading lately, as the share price has dropped 25.7% in the past month.

Signet Jewelers Limited Price and Consensus

Signet Jewelers Limited Price and Consensus | Signet Jewelers Limited Quote

So it may not be a good decision to keep this stock in your portfolio anymore, at least if you don’t have a long time horizon to wait.

If you are still interested in the Retail - Jewelry industry, you may instead consider a better-ranked stock - Movado Group Inc. MOV. The stock currently holds a Zacks Rank #1 (Strong Buy) and may be a better selection at this time. You can see the complete list of today’s Zacks #1 Rank stocks here.

Wall Street’s Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

Click for details >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Signet Jewelers Limited (SIG) : Free Stock Analysis Report
 
Movado Group Inc. (MOV) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research