Betting on the Diamond Industry with Signet Jewelers Stock

SIG has tacked on 77% in the last 12 months

facebook X logo linkedin

Signet Jewelers Limited (NYSE:SIG) is the world's largest diamond jewelry retailer operates approximately 3,300 international stores, including name brands like Kay Jewelers, Zales, Jared, H.Samuel, Ernest Jones, Peoples Jewellers, Piercing Pagoda, and Off the back of four consecutive earnings beats, Signet Jewelers will be reporting its fourth-quarter earnings this week on December 3 before the opening bell. The company will be looking to inch closer to profitability after its earnings tumbled as a result of the coronavirus pandemic.

Signet Jewelers stock is up a massive 77% year-over-year. The shares have more than quadrupled off their record lows below $6 from March, and scored an annual high of $32.22 as recently as Nov. 24. Since early August, SIG's channel of higher highs has seen pullbacks caught by its ascending 30-day moving average.

SIG Stock Chart

Signet Jewelers has beat expectations on all of its four most recent quarterly earnings reports. In the fourth quarter of 2019, Signet Jewelers beat expectations by $0.32. In the first quarter of 2020, the company beat expectations by a margin of $0.20. Even a second-quarter loss of -$1.59 for SIG stock still beat expectations by a large margin of $1.23. In its most recent quarterly report, the company beat its earnings target by $0.94. For Thursday morning's report, Signet Jewelers is expected to report a loss of -$0.71.

Signet Jewelers last paid a dividend of $0.37 in the first quarter of 2020. Prior to the coronavirus pandemic, the company had consistently grown its dividend since 2011.

Signet Jewelers stock is, at the very least, a gamble for long-term investors. The diamond industry as a whole has been on the decline for years, but is unlikely to vanish altogether. Despite the risks, there still lies a decent chance that Signet Jewelers stock continues running up after its massive bearish form.

After half a decade of bearishness, Signet Jewelers stock might have finally bottomed out back in March, and has thus now entered a recovery phase. Although the company is still generating net losses, Signet Jewelers stock has soared in price over the past few months. However, Signet Jewelers stock still seems to be a mixed bag from a fundamentals perspective. Although some of the negative marks the company presents are because of the pandemic, there are a few other worrisome details. Aside from its massive revenue drop for the current year, Signet Jewelers' revenue has been on the decline since at least 2016. The company has also been very inconsistent with its net income. Ultimately, Signet Jewelers has experienced huge losses in net profit for the past few years.

On the flipside, the company currently holds a respectable balance sheet. Signet Jewelers has $1.2 billion in cash and $3 billion in debt. Its price-to-book value ratio is 1.80, which means the company’s stock trades very close to its actual value in equity. Furthermore, Signet Jewelers stock has an amazing forward price-earnings ratio of 5.97.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI