In the latest close session, Signet (SIG) was down 3.01% at $95.88. The stock's performance was behind the S&P 500's daily gain of 1.66%. Meanwhile, the Dow gained 1.19%, and the Nasdaq, a tech-heavy index, added 2.78%.
The stock of jewelry company has risen by 16.77% in the past month, leading the Retail-Wholesale sector's gain of 0.61% and the S&P 500's loss of 1.49%.
The upcoming earnings release of Signet will be of great interest to investors. The company is expected to report EPS of $1.69, up 4.97% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $1.53 billion, reflecting a 0.41% fall from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.65 per share and a revenue of $6.84 billion, representing changes of +10.94% and +0.37%, respectively, from the prior year.
Any recent changes to analyst estimates for Signet should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.84% higher. As of now, Signet holds a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Signet is currently being traded at a Forward P/E ratio of 9.28. This indicates a discount in contrast to its industry's Forward P/E of 23.36.
Also, we should mention that SIG has a PEG ratio of 1.03. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Retail - Jewelry industry was having an average PEG ratio of 1.32.
The Retail - Jewelry industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 24, placing it within the top 10% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Signet Jewelers Limited (SIG): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).