Yahoo Finance Bull of the Day: Signet Jewelers (SIG)
The Zacks Retail – Jewelry industry is currently ranked in the top 24% (60 out of 250) of all Zacks Industries.
According to studies, 50% of a stock's price movement can be attributed to its group, making it clear why it’s critical for investors to target stocks in a thriving industry.
A company residing in the industry, Signet Jewelers SIG, has seen its near-term earnings outlook turn visibly bright over the last several months, landing the stock into the highly-coveted Zacks Rank #1 (Strong Buy).
Signet Jewelers is the world’s largest retailer of diamond jewelry, with its locations primarily operating under the banners of Kay Jewelers, Zales, and Jared, to name a few.
Let’s take a closer look at how the company currently stacks up.
Strong Share Performance & Sound Valuation
Signet Jeweler shares have been notably strong over the last three months, penciling in a sizable 25% gain and crushing the S&P 500’s performance.
Image Source: Zacks Investment Research
Clearly, buyers have stepped up.
Despite the strong share performance as of late, the company’s valuation multiples aren’t stretched; SIG shares currently trade at a 0.4X forward price-to-sales ratio, nearly in line with its five-year median and nowhere near its Zacks Retail and Wholesale sector average.
Image Source: Zacks Investment Research
Signet Jewelers carries a Style Score of a “B” for Value.
Robust Quarterly Performance
The company has consistently exceeded quarterly estimates, beating top and bottom line estimates in ten consecutive quarters.
Impressively, SIG posted a steep 150% EPS beat and reported sales nearly 8% above expectations in its latest quarter. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Dividends
Dividends provide a massive boost to any portfolio, allowing investors to reap a steady income stream.
And for those who seek income, SIG has that covered; the company’s annual dividend currently yields 1.2%, modestly above its Zacks sector average. SIG carries a sustainable 7% payout ratio.
Image Source: Zacks Investment Research
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
Additionally, the top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Signet Jewelers SIG would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).
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Signet Jewelers Limited (SIG) : Free Stock Analysis Report
