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Signet (SIG) Rallies 21.4% in Past Six Months: Here's Why
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Signet Jewelers Limited (SIG - Free Report) seems a promising pick, thanks to steady growth in its e-commerce business and advancements made with respect to the Inspiring Brilliance strategy. Sturdy gains from growth initiatives like unique banner value propositions, innovation, marketing efforts and advanced connected-commerce capabilities are added positives. Shares of this jewelry retailer have appreciated 21.4% in the past six months against the industry’s 9.3% decline. Let’s delve deeper.
Strategic Details
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 further 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. SIG had also 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.
In fact, digital business is the key driver for Signet. Management is focused on enhancing data-analytics capabilities with higher precision. Signet has been leveraging the analytics capability to optimize the process of adding product assortments. Additionally, e-tags are innovative, helping the company cater to customers’ needs more aptly. We expect the momentum in SIG’s digital business to continue to drive its overall results.
Image Source: Zacks Investment Research
Speaking of Signet’s Inspiring Brilliance strategy, this initiative 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. The company’s acquisition of Blue Nile seems encouraging too. Blue Nile is the pioneer in online diamond marketplace shopping and the acquisition has enhanced the company’s portfolio and customer base. These buyouts are boosting the company’s sales and profitability.
A Value Score of A coupled with a projected long-term earnings growth rate of 8% further speaks volumes.
The Zacks Consensus Estimate for earnings per share (EPS) of $11.86 for fiscal 2023 and $11.09 for fiscal 2024 witnessed a rise of 5.2% and 4.4%, respectively, over the past 30 days.
All in all, Signet appears to be a lucrative stock pick given all the aforementioned catalysts.
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 11.2% and 9%, 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 sports a Zacks Rank of 1 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 18.4% and 16.1%, respectively, from the year-ago reported figures.
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Signet (SIG) Rallies 21.4% in Past Six Months: Here's Why
Signet Jewelers Limited (SIG - Free Report) seems a promising pick, thanks to steady growth in its e-commerce business and advancements made with respect to the Inspiring Brilliance strategy. Sturdy gains from growth initiatives like unique banner value propositions, innovation, marketing efforts and advanced connected-commerce capabilities are added positives. Shares of this jewelry retailer have appreciated 21.4% in the past six months against the industry’s 9.3% decline. Let’s delve deeper.
Strategic Details
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 further 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. SIG had also 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.
In fact, digital business is the key driver for Signet. Management is focused on enhancing data-analytics capabilities with higher precision. Signet has been leveraging the analytics capability to optimize the process of adding product assortments. Additionally, e-tags are innovative, helping the company cater to customers’ needs more aptly. We expect the momentum in SIG’s digital business to continue to drive its overall results.
Image Source: Zacks Investment Research
Speaking of Signet’s Inspiring Brilliance strategy, this initiative 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. The company’s acquisition of Blue Nile seems encouraging too. Blue Nile is the pioneer in online diamond marketplace shopping and the acquisition has enhanced the company’s portfolio and customer base. These buyouts are boosting the company’s sales and profitability.
What’s More?
Additionally, analysts seem pretty optimistic about this Zacks Rank #1 (Strong Buy) stock. You can see the complete list of today’s Zacks #1 Rank stocks here.
A Value Score of A coupled with a projected long-term earnings growth rate of 8% further speaks volumes.
The Zacks Consensus Estimate for earnings per share (EPS) of $11.86 for fiscal 2023 and $11.09 for fiscal 2024 witnessed a rise of 5.2% and 4.4%, respectively, over the past 30 days.
All in all, Signet appears to be a lucrative stock pick given all the aforementioned catalysts.
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 11.2% and 9%, 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 sports a Zacks Rank of 1 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 18.4% and 16.1%, respectively, from the year-ago reported figures.