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In the latest trading session, Signet (SIG) closed at $55.72, marking a -0.5% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.24% for the day. On the other hand, the Dow registered a gain of 0.16%, and the technology-centric Nasdaq increased by 0.08%.
Prior to today's trading, shares of the jewelry company had lost 2.3% over the past month. This has lagged the Retail-Wholesale sector's gain of 5.98% and the S&P 500's gain of 2.37% in that time.
The upcoming earnings release of Signet will be of great interest to investors. The company is expected to report EPS of $6.39, down 5.05% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.33 billion, down 6.71% from the prior-year quarter.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Signet. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Signet boasts a Zacks Rank of #5 (Strong Sell).
Investors should also note Signet's current valuation metrics, including its Forward P/E ratio of 6.29. This signifies a discount in comparison to the average Forward P/E of 14.91 for its industry.
It's also important to note that SIG currently trades at a PEG ratio of 3.55. 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. The Retail - Jewelry industry currently had an average PEG ratio of 4.22 as of yesterday's close.
The Retail - Jewelry industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 180, positioning it in the bottom 29% 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.