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Signet (SIG) Surpasses Market Returns: Some Facts Worth Knowing

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In the latest trading session, Signet (SIG - Free Report) closed at $84.76, marking a +1% move from the previous day. This change outpaced the S&P 500's 0.4% gain on the day. Elsewhere, the Dow saw an upswing of 0.47%, while the tech-heavy Nasdaq appreciated by 0.24%.

Shares of the jewelry company witnessed a gain of 2.59% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 4.05%, and the S&P 500's gain of 4.61%.

The investment community will be closely monitoring the performance of Signet in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.21, marking a 3.2% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.5 billion, indicating a 0.44% growth compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.12 per share and a revenue of $6.76 billion, representing changes of +2.01% and +0.8%, respectively, from the prior year.

Any recent changes to analyst estimates for Signet should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Signet is currently a Zacks Rank #2 (Buy).

Digging into valuation, Signet currently has a Forward P/E ratio of 9.2. This valuation marks a discount compared to its industry average Forward P/E of 18.1.

Meanwhile, SIG's PEG ratio is currently 0.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Retail - Jewelry industry had an average PEG ratio of 2.21.

The Retail - Jewelry industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 60, putting it in the top 25% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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