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Bull of the Day: Signet Jewelers (SIG)

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The Zacks Retail – Jewelry industry is currently ranked in the top 24% (60 out of 250) of all Zacks Industries.

According to studies, 50% of a stock's price movement can be attributed to its group, making it clear why it’s critical for investors to target stocks in a thriving industry.

A company residing in the industry, Signet Jewelers (SIG - Free Report) , has seen its near-term earnings outlook turn visibly bright over the last several months, landing the stock into the highly-coveted Zacks Rank #1 (Strong Buy).

Signet Jewelers is the world’s largest retailer of diamond jewelry, with its locations primarily operating under the banners of Kay Jewelers, Zales, and Jared, to name a few.

Let’s take a closer look at how the company currently stacks up.

Strong Share Performance & Sound Valuation

Signet Jeweler shares have been notably strong over the last three months, penciling in a sizable 25% gain and crushing the S&P 500’s performance.

Zacks Investment Research
Image Source: Zacks Investment Research

Clearly, buyers have stepped up.

Despite the strong share performance as of late, the company’s valuation multiples aren’t stretched; SIG shares currently trade at a 0.4X forward price-to-sales ratio, nearly in line with its five-year median and nowhere near its Zacks Retail and Wholesale sector average.

Zacks Investment Research
Image Source: Zacks Investment Research

Signet Jewelers carries a Style Score of a “B” for Value.

Robust Quarterly Performance

The company has consistently exceeded quarterly estimates, beating top and bottom line estimates in ten consecutive quarters.

Impressively, SIG posted a steep 150% EPS beat and reported sales nearly 8% above expectations in its latest quarter. Below is a chart illustrating the company’s revenue on a quarterly basis.

Zacks Investment Research
Image Source: Zacks Investment Research


Dividends provide a massive boost to any portfolio, allowing investors to reap a steady income stream.

And for those who seek income, SIG has that covered; the company’s annual dividend currently yields 1.2%, modestly above its Zacks sector average. SIG carries a sustainable 7% payout ratio.

Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.

Additionally, the top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.

Signet Jewelers (SIG - Free Report) would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).

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