Here's Why Signet (SIG) is a Strong Value Stock
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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
Signet (SIG)
Founded in 1950 and headquartered in Hamilton, Bermuda, Signet Jewelers Limited (SIG) is a retailer of diamond jewelry, watches and other products. The company operates in the United States, Canada, the U.K., the Republic of Ireland and the Channel Islands. It is often considered to be the leading retailer of diamond jewelry. We note that Signet had 2,668 stores as of Aug. 3, 2024.
SIG sits at a Zacks Rank #3 (Hold), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Retail - Jewelry industry's P/E of 20.6X, shares of Signet are trading at a forward P/E of 9.1X. SIG also has a PEG Ratio of 1.1, a Price/Cash Flow ratio of 6.1X, and a Price/Sales ratio of 0.6X.
A company's earnings performance is important for value investors as well. For fiscal 2025, two analysts revised their earnings estimate higher in the last 60 days for SIG, while the Zacks Consensus Estimate has increased $0.20 to $10.80 per share. SIG also holds an average earnings surprise of 28.1%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding SIG to their portfolios.
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Signet Jewelers Limited (SIG) : Free Stock Analysis Report