shares trade an average of 686,000 shares per day, and the company has a market cap of $3.9 billion. What's a wedding without a ring, after all? Gold prices have fallen to fresh lows for this year, and a combinations of lower gold prices with increased demand are the proposals jewelers long for. Keep an eye especially close on gold and other metal prices.
Overall, Signet shares are performing well on a larger time frame, although recently they took a dip. Signet is reporting earnings this month, so expect some volatility in price. Analyst estimates are coming in between 90 cents and $1.01 per share. Signet pays a 48 cent dividend yielding 1%.
(NILE - Get Report)
operates as an online retailer of diamonds and fine jewelry. Blue Nile shares trade an average of 344,000 shares per day and the company has a market cap of $398 million. Like Signet, Blue Nile is front and center for companies to benefit from increases in marriages.
Blue Nile is firing on all cylinders. Investors saw a record year in 2011 -- $348 million in sales. Blue Nile trades at an extraordinarily rich premium with a forward price-to-earnings multiple of 37.
Not everyone is convinced Blue Nile makes a wise investment; short interest is a massive 29% of the float. Shorts have done well with Blue Nile, making recent 52-week lows. Price weakness is not surprising considering Blue Nile has come up short in the past four quarters. If Blue Nile improves margins, it may once again prove to be a sweetheart of an investment. Wall Street is expecting 0.07 cents per share this quarter based on earnings estimates.
, through its subsidiaries, operates as a specialty retailer of fine jewelry. Zale shares trade an average of 242,000 shares per day, and the company has a market cap of $79 Million. Zale is expected to report last fiscal quarter's results before the opening bell May 23.
On average, analysts expect a drop of 94 cents in earnings per share compared with last quarter's results of 78 cents. The reporting quarter's mean estimate is for a loss of 16 cents per share.
Wall Street is expecting results within -28 cents and -0.07 cents per share.
While losing money in the past three out of four quarters, the last quarter was profitable, and Zale did manage to beat earnings by a penny. Short interest is much lower with Zale than Blue Nile at 11%, but such a large short interest is decidedly bearish, and the shorts clearly have made the right call up to now. Don't be surprised if Zale is beated again if gold prices continue lower.
In the meantime, Signet appears to be the prettiest of the jewelers.