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Tiffany (TIF) Gains As Market Dips: What You Should Know

Zacks Equity Research

In the latest trading session, Tiffany (TIF) closed at $78.14, marking a +0.48% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.58%. Elsewhere, the Dow lost 1.99%, while the tech-heavy Nasdaq lost 1.63%.

Heading into today, shares of the luxury jeweler had lost 24.02% over the past month, lagging the Retail-Wholesale sector's loss of 5.53% and the S&P 500's loss of 6.62% in that time.

Investors will be hoping for strength from TIF as it approaches its next earnings release, which is expected to be March 15, 2019. The company is expected to report EPS of $1.72, up 2.99% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.39 billion, up 3.86% from the year-ago period.

TIF's full-year Zacks Consensus Estimates are calling for earnings of $4.79 per share and revenue of $4.52 billion. These results would represent year-over-year changes of +15.98% and +8.5%, respectively.

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It is also important to note the recent changes to analyst estimates for TIF. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, the Zacks Consensus EPS estimate has moved 0.61% lower. TIF currently has a Zacks Rank of #3 (Hold).

Digging into valuation, TIF currently has a Forward P/E ratio of 16.22. Its industry sports an average Forward P/E of 12.09, so we one might conclude that TIF is trading at a premium comparatively.

Also, we should mention that TIF has a PEG ratio of 1.42. 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. Retail - Jewelry stocks are, on average, holding a PEG ratio of 1.17 based on yesterday's closing prices.

The Retail - Jewelry industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 105, putting it in the top 41% 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.

To follow TIF in the coming trading sessions, be sure to utilize Zacks.com.


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