Signet (SIG) ended the recent trading session at $93.06, demonstrating a +2.87% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.62%. Meanwhile, the Dow gained 0.58%, and the Nasdaq, a tech-heavy index, added 0.83%.
Heading into today, shares of the jewelry company had gained 5.83% over the past month, outpacing the Retail-Wholesale sector's loss of 0.96% and the S&P 500's gain of 0.8%.
Investors will be eagerly watching for the performance of Signet in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.32, reflecting a 11.86% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.56 billion, showing a 1.06% escalation compared to the year-ago quarter.
SIG's full-year Zacks Consensus Estimates are calling for earnings of $10.3 per share and revenue of $6.85 billion. These results would represent year-over-year changes of +7.29% and +0.46%, respectively.
It is also important to note the recent changes to analyst estimates for Signet. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.82% decrease. Currently, Signet is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Signet is currently being traded at a Forward P/E ratio of 8.79. This denotes a discount relative to the industry average Forward P/E of 20.31.
It's also important to note that SIG currently trades at a PEG ratio of 1.04. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Jewelry was holding an average PEG ratio of 2.12 at yesterday's closing price.
The Retail - Jewelry industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 96, finds itself in the top 40% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Signet Jewelers Limited (SIG): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).