Signet (SIG) Outpaces Stock Market Gains: What You Should Know
Zacks Investment Research | Feb 06, 2020 05:45AM ET
In the latest trading session, Signet (SIG) closed at $26.55, marking a +1.12% move from the previous day. This move outpaced the S&P 500's daily gain of 0.33%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 0.67%.
Prior to today's trading, shares of the jewelry company had gained 36.51% over the past month. This has outpaced the Retail-Wholesale sector's gain of 2.88% and the S&P 500's gain of 3.24% in that time.
Investors will be hoping for strength from SIG as it approaches its next earnings release. On that day, SIG is projected to report earnings of $3.47 per share, which would represent a year-over-year decline of 12.37%.
It is also important to note the recent changes to analyst estimates for SIG. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 12.25% higher. SIG is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note SIG's current valuation metrics, including its Forward P/E ratio of 7.16. For comparison, its industry has an average Forward P/E of 15.03, which means SIG is trading at a discount to the group.
We can also see that SIG currently has a PEG ratio of 0.9. 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 was holding an average PEG ratio of 1.7 at yesterday's closing price.
The Retail - Jewelry industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 21% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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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