NEW YORK (TheStreet) --Shares of both Tiffany (TIF) - Get Tiffany & Co. Report and Signet Jewelers (SIG) have fallen double digits over the past year, and investors are skeptical as both report earnings Thursday morning before the bell. Tiffany is set to report its 2016 second quarter results, and Signet will report fiscal 2017 second quarter results.
Wednesday afternoon's CNBC "Fast Money Halftime Report" panel debated which name, ahead of earnings, they would be more bullish on.
While recognizing its been a terrible year for both, CEO of Lebenthal Asset Management Jim Lebenthal believes Tiffany is the name investors should be in.
"The reason you want to own Tiffany is that global expansion is going to continue. In a couple of years, they should earn $4.50 a share, and this is a stock that traditionally trades in the mid-20s, yes that's a little bit of a premium, but it's a premium for the brand. And if you put 24 times on $4.50 you're over 100, and that's a better than 50% rise in the next two years," Lebenthal explained.
One point to note about Lebenthal's optimism on Tiffany is that it is not based on tomorrow's earnings.
Pushing back on Lebenthal's optimism was the co-founder of Najarian Family and Advisors Office Jon Najarian, who prefers Signet because the average consumer may not be willing to pay Tiffany's price.
Shares of both Tiffany and Signet were higher during mid-afternoon trading on Wednesday.