Pro Picks: Invest like Wall Street Titans With 5 Sparklers, Led by Sigma Jewelers
Thomas Monteiro | May 26, 2023 05:20PM ET
Want to invest alongside Wall Street’s biggest players? The latest 13F filings have just dropped, revealing immediate insight into what the moguls are buying. We’ve starred five of these stocks inparticular for our VIP list of Pro Picks, only available to InvestingPro data suggesting that they’re poised to beat the S&P 500.
And at the top of the list is Signet Jewelers (NYSE:SIG), which was snapped up by The Big Short’s Michael Burry last quarter for a sizable stake in his portfolio.
This week’s Pro Picks are backed by top Wall Street analysts, as well. And their impressive raw metrics point to robust companies that are pumping out big profits, with juicy returns for shareholders to pocket. They have each earned a magnificent InvestingPro health score of 2.75 or more out of 5, or a Great Performance rating - which, for the last 7 years, has indicated outperformance vs. the market.
Michael Burry has made a $9.7 million investment in Signet Jewelers through his Scion Capital hedge fund, equating to an ample 9.1% of his portfolio. And it’s no wonder: The jewelry retailer is simply crushing it, boasting 375% growth in cumulative diluted earnings per share over the past three years, as well as outstanding free cash flow yield.
Meanwhile, both analysts and InvestingPro’s fair value algorithm agree that this gem is undervalued. Each puts share upside at roughly 34% above current levels. And Signet has been diligently returning cash to shareholders, bumping up its share-buyback program yet again in March to an authorization of $775 million. It also hiked its dividend for the second year running, now paying out a 1.3% annual yield to investors.
Shares are up more than 7% for the year, and look to have plenty of runway left.
Want to see the full list of this month's Pro Picks poised to beat the market? Start a 7-day free trial to unlock must-have insights and data. And while you’re here, dig into InvestingPro’s wealth of tools and screeners to begin building a lucrative portfolio.
If you're already an InvestingPro subscriber, this week's full Pro Picks list is available here.
Data as of May 25, 2023.
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