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Signet (SIG) Stock Gains 129% in a Year: How 2022 Unfolds

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·4 min read
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Signet Jewelers Limited SIG appears promising this year, thanks to its sturdy growth efforts and sound fundamentals. SIG is benefiting from e-commerce growth and advancements in the Inspiring Brilliance strategy. SIG is focused on evolving its channel-agnostic retailer capabilities and combining digital with in-store experiences to gain a substantial competitive edge.

This renowned jewelry retailer’s shares have surged a whopping 129.2% in the past year, outperforming the Zacks Retail - Jewelry industry’s 97.6% rally. Currently, the industry ranks in the top 2% of all the Zacks classified industries. An expected long-term earnings growth rate of 8% with a VGM Score of A for this presently Zacks Rank #1 (Strong Buy) stock further speaks volumes. You can see the complete list of today’s Zacks #1 Rank stocks here.

More on Strategies

Digital business is the key driver. Signet remains focused on enhancing the data- analytics capabilities with higher precision. It has also been adding product assortments. Management looks forward to taking a connected commerce approach to the next phase of growth. During third-quarter fiscal 2022, e-commerce sales jumped 14.4% from the prior-year quarter’s level to $273.1 million.

Signet’s digital commerce strategy bodes well. The strategy helps combining customer experiences, leveraging in store and online traffic as well as mobile and delivery services. Management is consistently integrating its physical stores with advanced virtual experiences through data-driven in-store consultations and services like buy online pickup in-store and curbside options. Such efforts are constantly aiding SIG to aptly cater to customers’ needs.

SIG’s Inspiring Brilliance strategy has been significantly contributing to its performance for sometime now. This growth strategy focuses on expanding big banners, boosting service revenues, broadening the Accessible Luxury and Value segments as well as accelerating digital commerce. As part of this strategy, Signet makes use of data-driven insights for targeting new and existing customers.

SIG is working toward evolving its Customer First strategy into a consumer-inspired experience, which includes tailored merchandise assortments and expanded services, offering more innovative and personalized experiences. Signet steadily broadens assortments across its Zales, Kay and Jared brand lines.

Signet also acquired Diamonds Direct USA Inc., in an all-cash transaction valued at $490 million. Diamonds Direct is known for unique bridal-focused collections and shopping experience. This now became SIG’s highly-personalized bridal destination, offering customers valuable bridal experiences.

Wrapping Up

We note that Signet’s brick-and-mortar and e-commerce businesses have been solid to date. SIG is expected to gain from the robust jewelry category as well. Its merchandise categories and banners have been experiencing growth for a while.

Given all the factors discussed above, Signet is well-poised for growth in 2022 and appears a lucrative investment bet now.

Other Hot Stocks in Retail

Some other top-ranked stocks are Ulta Beauty ULTA, Costco COST and Capri Holdings CPRI.

Ulta Beauty, the leading beauty retailer, presently flaunts a Zacks Rank of 1. ULTA has a trailing four-quarter earnings surprise of 76%, on average.

The Zacks Consensus Estimate for Ulta Beauty’s fiscal 2022 sales and earnings per share (EPS) suggests growth of 6.9% and 5%, respectively, from the corresponding year-ago levels. ULTA has an expected EPS growth rate of 16.5% for three-five years.

Costco, a general merchandise retailer, has a Zacks Rank #2 (Buy) at present. COST has a trailing four-quarter earnings surprise of 8.3%, on average.

The Zacks Consensus Estimate for Costco’s fiscal 2022 sales and EPS suggests growth of 7.6% and 9.5%, respectively, from the year-ago corresponding figures. COST has an expected EPS growth rate of 8.8% for three-five years.

Capri Holdings, a global fashion luxury group, currently carries a Zacks Rank of 2. CPRI’s bottom line outperformed the Zacks Consensus Estimate in all the trailing four quarters, the average being 1,024.9%.

The Zacks Consensus Estimate for Capri Holdings’ current financial year sales and EPS suggests growth of 33.2% and 181.1%, respectively, from the corresponding year-ago numbers. CPRI has an expected EPS growth rate of 32.2% for three-five years.


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Costco Wholesale Corporation (COST) : Free Stock Analysis Report
 
Ulta Beauty Inc. (ULTA) : Free Stock Analysis Report
 
Signet Jewelers Limited (SIG) : Free Stock Analysis Report
 
Capri Holdings Limited (CPRI) : Free Stock Analysis Report
 
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