Signet (SIG) closed at $60.15 in the latest trading session, marking a +1.9% move from the prior day. The stock outpaced the S&P 500’s daily gain of 0.58%. Elsewhere, the Dow gained 0.75%, while the tech-heavy Nasdaq added 0.55%.
Prior to today’s trading, shares of the jewelry company had gained 1.67% over the past month. This has outpaced the Retail-Wholesale sector’s loss of 0.19% and the S&P 500’s loss of 0.84% 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’s earnings per share (EPS) are projected to be $1.01, reflecting a 9.01% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.52 billion, showing a 0.34% escalation compared to the year-ago quarter.
SIG’s full-year Zacks Consensus Estimates are calling for earnings of $8.70 per share and revenue of $6.69 billion. These results would represent year-over-year changes of -2.68% and -0.24%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Signet. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Signet is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Signet is currently being traded at a Forward P/E ratio of 6.79. This denotes a discount relative to the industry’s average Forward P/E of 17.03.
It is also worth noting that SIG currently has a PEG ratio of 0.46. 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 3.1 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 17, putting it in the top 7% of all 250+ industries.
