In the latest trading session, Signet (SIG) closed at $80, marking a +1.28% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.89%. Meanwhile, the Dow lost 1.3%, and the Nasdaq, a tech-heavy index, lost 0.17%.
Coming into today, shares of the jewelry company had lost 5.45% in the past month. In that same time, the Retail-Wholesale sector lost 6.12%, while the S&P 500 lost 1.79%.
Signet will be looking to display strength as it nears its next earnings release. In that report, analysts expect Signet to post earnings of $3.90 per share. This would mark a year-over-year decline of 6.02%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.45 billion, up 11.91% from the year-ago period.
Any recent changes to analyst estimates for Signet should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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. The Zacks Consensus EPS estimate has moved 2.48% higher within the past month. Signet is currently a Zacks Rank #1 (Strong Buy).
Investors should also note Signet's current valuation metrics, including its Forward P/E ratio of 7.09. Its industry sports an average Forward P/E of 14.52, so we one might conclude that Signet is trading at a discount comparatively.
It is also worth noting that SIG currently has a PEG ratio of 0.89. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SIG's industry had an average PEG ratio of 0.89 as of yesterday's close.
The Retail - Jewelry industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 4, which puts it in the top 2% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Signet Jewelers Limited (SIG) : Free Stock Analysis Report
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