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Bear of the Day: Signet Jewelers (SIG)

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This market rally can make anyone feel like Warren Buffet. Stocks are pretty much moving in one direction, up. That can lull investors into a false sense of security. If there’s one thing this market has taught us, it’s that nothing lasts forever, the good times nor the bad.

There is a way to save yourself from the frustration of long-term losses though. That is by looking with stocks with thriving long-term profits. The Zacks Rank not only offers up ways to find those stocks with the strongest earnings trends, it also helps you avoid stocks where the trend has shifted.

One such stock with a negative shift in its earnings trend is Signet Jewelers (SIG - Free Report) . Signet Jewelers Limited operates as a diamond jewelry retailer. It operates primarily under the Kay Jewelers, Kay Jewelers Outlet, Jared The Galleria Of Jewelry, Jared Vault, Zales Jewelers, Zales Outlet, Diamonds Direct, James Allen, Banter by Piercing Pagoda, and Peoples Jewellers names, as well as operates online through JamesAllen.com and Rocksbox. 

Currently, the stock is a Zacks Rank #5 (Strong Sell). The reason for the unfavorable rank is analysts coming in an cutting their estimates for the current year and next year. The bearish moves have slashed the current year Zacks Consensus Estimate from $12.47 down to $11.76 while next year’s number is off from $12.93 to $11.17. That means that the company is expecting an earnings contraction of 4.23% this year and 5.06% next year.

The Retail – Jewelry industry ranks in the Bottom 13% of our Zacks Industry Rank. Right now, there are no stocks in the industry which ranked higher than a Zacks Rank #3 (Hold). Those stocks include Brilliant Earth (BRLT - Free Report) and Envela (ELA - Free Report) .


In-Depth Zacks Research for the Tickers Above


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Signet Jewelers Limited (SIG) - free report >>

Envela Corporation (ELA) - free report >>

Brilliant Earth Group, Inc. (BRLT) - free report >>

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