For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Signet (SIG) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question.
Signet is a member of our Retail-Wholesale group, which includes 189 different companies and currently sits at #14 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Signet is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for SIG's full-year earnings has moved 1.3% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, SIG has moved about 3% on a year-to-date basis. At the same time, Retail-Wholesale stocks have gained an average of 0.7%. As we can see, Signet is performing better than its sector in the calendar year.
Another Retail-Wholesale stock, which has outperformed the sector so far this year, is Dillard's (DDS). The stock has returned 0.8% year-to-date.
In Dillard's' case, the consensus EPS estimate for the current year increased 10.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Signet belongs to the Retail - Jewelry industry, a group that includes 5 individual companies and currently sits at #24 in the Zacks Industry Rank. On average, this group has gained an average of 8.6% so far this year, meaning that SIG is slightly underperforming its industry in terms of year-to-date returns.
In contrast, Dillard's falls under the Retail - Regional Department Stores industry. Currently, this industry has 4 stocks and is ranked #69. Since the beginning of the year, the industry has moved -2.9%.
Investors interested in the Retail-Wholesale sector may want to keep a close eye on Signet and Dillard's as they attempt to continue their solid performance.
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Signet Jewelers Limited (SIG): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).