Signet (SIG) closed at $75.30 in the latest trading session, marking a -4.8% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 1.6%. Elsewhere, the Dow saw a downswing of 1.23%, while the tech-heavy Nasdaq depreciated by 2.24%.
Heading into today, shares of the jewelry company had lost 5.9% over the past month, lagging the Retail-Wholesale sector's gain of 2.64% and the S&P 500's gain of 2.25%.
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 $1.21 per share, which would represent a year-over-year decline of 3.2%. In the meantime, our current consensus estimate forecasts the revenue to be $1.5 billion, indicating a 0.44% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.12 per share and a revenue of $6.76 billion, representing changes of +2.01% and +0.8%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Signet. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Signet is holding a Zacks Rank of #2 (Buy) right now.
With respect to valuation, Signet is currently being traded at a Forward P/E ratio of 8.67. This denotes a discount relative to the industry average Forward P/E of 17.2.
It is also worth noting that SIG currently has a PEG ratio of 0.71. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Jewelry was holding an average PEG ratio of 2.06 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 60, finds itself in the top 25% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Signet Jewelers Limited (SIG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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