We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why Signet (SIG) Stock Appears to be a Lucrative Pick
Read MoreHide Full Article
Signet Jewelers Limited’s (SIG - Free Report) sturdy omnichannel endeavors make it a top-notch player even in such a volatile backdrop. This Zacks Rank #1 (Strong Buy) stock is performing pretty impressively on the bourses, thanks to solid growth in its e-commerce business and smooth progress in the Inspiring Brilliance strategy. Sturdy gains from growth initiatives like unique banner value propositions, marketing efforts and advanced connected-commerce capabilities are catalysts. You can see the complete list of today’s Zacks #1 Rank stocks here.
The aforesaid strengths have aided the shares of this jewelry retailer to comfortably outpace the industry over the past three months. The stock has rallied 25.1% against the industry’s 2.9% fall in the said time frame.
Additionally, analysts seem pretty optimistic about the owner of Zales and Jared brands. Over the past 30 days, the Zacks Consensus Estimate for earnings per share (EPS) of $11.86 for fiscal 2023 and $11.09 for fiscal 2024 witnessed an uptick from $11.27 and $10.62, respectively. A Value Score of A with a projected long-term earnings growth rate of 8% further demonstrates the stock’s potential. Let’s analyze this further.
A Glance at Strategies
Signet has been integrating its physical stores with advanced virtual experiences through data-driven in-store consultations and services like buy online, pickup in-store and curbside options. The company’s connected commerce strategy helps in combining customer experiences, leveraging in-store and online as well as mobile and ubiquitous delivery.
Management had earlier added several features and capabilities to its digital platform, offering a seamless customer experience. Further, SIG had rolled out Google Business Messages and Apple Business Chat features, allowing customers to engage virtual jewelry consultants in real-time or offline from search results or maps.
Digital business is the key driver for Signet. Management is focused on enhancing the data-analytics capabilities with higher precision. Signet has been leveraging the analytics capability to optimize the process of adding product assortments.
In addition, e-tags are innovative and come across as valuable technology. This is helping the company cater to customers’ needs more aptly. We expect the momentum in SIG’s digital business to continue driving the overall results ahead.
Image Source: Zacks Investment Research
Additionally, Signet’s Inspiring Brilliance strategy has been driving the overall results. This growth strategy focuses on expanding big banners, boosting services, broadening the Accessible Luxury and Value segments, as well as accelerating digital commerce, among others.
As part of the Inspiring Brilliance growth strategy, the company makes use of data-driven insights for targeting new and existing customers. It is working toward evolving its Customer First strategy to a consumer-inspired experience, which includes tailored merchandise assortments and expanded services, offering more innovative and personalized experiences.
Signet’s acquisition of Diamonds Direct USA Inc is an added positive. Diamonds Direct is known for its unique bridal-focused collections and shopping experience. This has now become the company’s highly-personalized bridal destination, offering customers valuable bridal experiences. Signet has also been boosting customization services.
Also, the company’s acquisition of Blue Nile appears encouraging. Blue Nile is the pioneer in online diamond marketplace shopping and the acquisition has enhanced the company’s portfolio and its customer base. These buyouts are boosting the company’s sales and profitability.
All in all, Signet appears to be an excellent pick on the back of the aforementioned catalysts.
3 Other Top Retail Stocks
We highlighted three other top-ranked stocks, namely Tecnoglass (TGLS - Free Report) , Chico's FAS and Wingstop (WING - Free Report) .
Tecnoglass manufactures and sells architectural glass and windows, and aluminum products for the residential and commercial construction industries. TGLS currently sports a Zacks Rank of 1.
The Zacks Consensus Estimate for Tecnoglass’ current financial-year sales and EPS suggests growth of 43.4% and 82.2%, respectively, from the year-ago reported figures. TGLS has a trailing four-quarter earnings surprise of 26.9%, on average.
Chico's FAS, an omnichannel specialty retailer, currently sports a Zacks Rank of 1. CHS has a trailing four-quarter earnings surprise of 87.5%, on average.
The Zacks Consensus Estimate for Chico's FAS’s current financial-year sales and EPS suggests growth of 19.6% and 127.5%, respectively, from the year-ago reported figures.
Wingstop, which franchises and operates restaurants, currently carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 5.8%, on average.
The Zacks Consensus Estimate for Wingstop’s current financial-year sales and EPS suggests growth of 25.5% and 23%, respectively, from the year-ago reported numbers. WING has an expected EPS growth rate of 12% for three-five years.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
Here's Why Signet (SIG) Stock Appears to be a Lucrative Pick
Signet Jewelers Limited’s (SIG - Free Report) sturdy omnichannel endeavors make it a top-notch player even in such a volatile backdrop. This Zacks Rank #1 (Strong Buy) stock is performing pretty impressively on the bourses, thanks to solid growth in its e-commerce business and smooth progress in the Inspiring Brilliance strategy. Sturdy gains from growth initiatives like unique banner value propositions, marketing efforts and advanced connected-commerce capabilities are catalysts. You can see the complete list of today’s Zacks #1 Rank stocks here.
The aforesaid strengths have aided the shares of this jewelry retailer to comfortably outpace the industry over the past three months. The stock has rallied 25.1% against the industry’s 2.9% fall in the said time frame.
Additionally, analysts seem pretty optimistic about the owner of Zales and Jared brands. Over the past 30 days, the Zacks Consensus Estimate for earnings per share (EPS) of $11.86 for fiscal 2023 and $11.09 for fiscal 2024 witnessed an uptick from $11.27 and $10.62, respectively. A Value Score of A with a projected long-term earnings growth rate of 8% further demonstrates the stock’s potential. Let’s analyze this further.
A Glance at Strategies
Signet has been integrating its physical stores with advanced virtual experiences through data-driven in-store consultations and services like buy online, pickup in-store and curbside options. The company’s connected commerce strategy helps in combining customer experiences, leveraging in-store and online as well as mobile and ubiquitous delivery.
Management had earlier added several features and capabilities to its digital platform, offering a seamless customer experience. Further, SIG had rolled out Google Business Messages and Apple Business Chat features, allowing customers to engage virtual jewelry consultants in real-time or offline from search results or maps.
Digital business is the key driver for Signet. Management is focused on enhancing the data-analytics capabilities with higher precision. Signet has been leveraging the analytics capability to optimize the process of adding product assortments.
In addition, e-tags are innovative and come across as valuable technology. This is helping the company cater to customers’ needs more aptly. We expect the momentum in SIG’s digital business to continue driving the overall results ahead.
Image Source: Zacks Investment Research
Additionally, Signet’s Inspiring Brilliance strategy has been driving the overall results. This growth strategy focuses on expanding big banners, boosting services, broadening the Accessible Luxury and Value segments, as well as accelerating digital commerce, among others.
As part of the Inspiring Brilliance growth strategy, the company makes use of data-driven insights for targeting new and existing customers. It is working toward evolving its Customer First strategy to a consumer-inspired experience, which includes tailored merchandise assortments and expanded services, offering more innovative and personalized experiences.
Signet’s acquisition of Diamonds Direct USA Inc is an added positive. Diamonds Direct is known for its unique bridal-focused collections and shopping experience. This has now become the company’s highly-personalized bridal destination, offering customers valuable bridal experiences. Signet has also been boosting customization services.
Also, the company’s acquisition of Blue Nile appears encouraging. Blue Nile is the pioneer in online diamond marketplace shopping and the acquisition has enhanced the company’s portfolio and its customer base. These buyouts are boosting the company’s sales and profitability.
All in all, Signet appears to be an excellent pick on the back of the aforementioned catalysts.
3 Other Top Retail Stocks
We highlighted three other top-ranked stocks, namely Tecnoglass (TGLS - Free Report) , Chico's FAS and Wingstop (WING - Free Report) .
Tecnoglass manufactures and sells architectural glass and windows, and aluminum products for the residential and commercial construction industries. TGLS currently sports a Zacks Rank of 1.
The Zacks Consensus Estimate for Tecnoglass’ current financial-year sales and EPS suggests growth of 43.4% and 82.2%, respectively, from the year-ago reported figures. TGLS has a trailing four-quarter earnings surprise of 26.9%, on average.
Chico's FAS, an omnichannel specialty retailer, currently sports a Zacks Rank of 1. CHS has a trailing four-quarter earnings surprise of 87.5%, on average.
The Zacks Consensus Estimate for Chico's FAS’s current financial-year sales and EPS suggests growth of 19.6% and 127.5%, respectively, from the year-ago reported figures.
Wingstop, which franchises and operates restaurants, currently carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 5.8%, on average.
The Zacks Consensus Estimate for Wingstop’s current financial-year sales and EPS suggests growth of 25.5% and 23%, respectively, from the year-ago reported numbers. WING has an expected EPS growth rate of 12% for three-five years.