NEW YORK (TheStreet) -- Jewelers Blue Nile (NILE), Zale Corporation (ZLC) and Signet Jewelers (SIG) were dazzling, after Tiffany & Co (TIF) posted a stellar third quarter.

By early afternoon, Tiffany shares had rocketed 8.9% to $88.16, while Signet climbed 1.1% to $77.29. Zale shares added 3.8% to $14.82 and Blue Nile tacked on 4.4% to $48.24.

Before the bell Tuesday, the New York-based retailer reported net income of 73 cents a share, 50% more than a year earlier. Sales of $911.5 million were $22 million higher than what analysts surveyed by Thomson Reuters expected. Comparable-store sales grew 7%, with as much as 29% sales growth in the Asia-Pacific region.

Signet, also reported earnings earlier in the day. It earned 42 cents a share, in line with expectations. Revenue of $771.4 million was 7.7% higher than a year earlier, and $810,000 more than analysts expected. Same-store sales were up 3.2%, while e-commerce sales grew 11.7%.

Shine bright like a diamond, indeed.

TheStreet Ratings team rates Tiffany & Co. as a Buy with a ratings score of A-. The team has this to say about their recommendation:

"We rate Tiffany & Co. (TIF) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

TheStreet Ratings team rates Signet Jewelers Ltd as a Buy with a ratings score of B+. The team has this to say about their recommendation:

"We rate Signet Jewelers Ltd (SIG) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

TheStreet Ratings team rates Zale Corp as a Hold with a ratings score of C. The team has this to say about their recommendation:

"We rate Zale Corp (ZLC) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Zale Corp reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, ZALE CORP turned its bottom line around by earning 2 cents a share vs. -96 cents a share in the prior year. This year, the market expects an improvement in earnings (48 cents vs. 2 cents).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Specialty Retail industry. The net income increased by 59.6% when compared to the same quarter one year prior, rising from -$19.75 million to -$7.98 million.
  • The gross profit margin for Zale Corp is rather high; currently it is at 53.13%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -1.91% trails the industry average.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Specialty Retail industry and the overall market, Zale Corp's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • The debt-to-equity ratio is very high at 2.22 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.06, which clearly demonstrates the inability to cover short-term cash needs.

TheStreet Ratings team rates Blue Nile Inc as a Hold with a ratings score of C+. The team has this to say about their recommendation:

"We rate Blue Nile Inc (NILE) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including poor profit margins and weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • NILE's revenue growth has slightly outpaced the industry average of 7.1%. Since the same quarter one year prior, revenues rose by 10.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • NILE's debt-to-equity ratio is very low at 0.03 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Despite the fact that NILE's debt-to-equity ratio is low, the quick ratio, which is currently 0.65, displays a potential problem in covering short-term cash needs.
  • The gross profit margin for Blue Nile Inc  is rather low; currently it is at 19.69%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.93% trails that of the industry average.
  • Net operating cash flow has significantly decreased to $0.20 million or 95.83% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
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