In the latest close session, Signet (SIG) was up +2.03% at $87.03. The stock outpaced the S&P 500's daily gain of 0.38%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 0.62%.
The jewelry company's shares have seen a decrease of 3.1% over the last month, not keeping up with the Retail-Wholesale sector's gain of 0.54% and the S&P 500's gain of 1.61%.
Investors will be eagerly watching for the performance of Signet in its upcoming earnings disclosure. On that day, Signet is projected to report earnings of $1.67 per share, which would represent year-over-year growth of 3.73%. At the same time, our most recent consensus estimate is projecting a revenue of $1.53 billion, reflecting a 0.59% fall from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.57 per share and a revenue of $6.84 billion, representing changes of +10.1% and +0.43%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Signet. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Signet presently features a Zacks Rank of #2 (Buy).
From a valuation perspective, Signet is currently exchanging hands at a Forward P/E ratio of 8.07. This signifies a discount in comparison to the average Forward P/E of 24.28 for its industry.
It's also important to note that SIG currently trades at a PEG ratio of 0.9. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Retail - Jewelry industry was having an average PEG ratio of 1.28.
The Retail - Jewelry industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 29, positioning it in the top 12% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SIG in the coming trading sessions, be sure to utilize Zacks.com.
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Signet Jewelers Limited (SIG): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).