Signet Jewelers (SIG): Heavy Pre-Market Activity

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Signet Jewelers ( SIG) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Signet Jewelers as such a stock due to the following factors:

  • SIG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $144.1 million.
  • SIG traded 397,811 shares today in the pre-market hours as of 8:03 AM, representing 25.3% of its average daily volume.

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More details on SIG:

Signet Jewelers Limited engages in the retail sale of jewelry and watches in the United States, the United Kingdom, the Republic of Ireland, and the Channel Islands. The company operates through US and UK divisions. The stock currently has a dividend yield of 0.8%. SIG has a PE ratio of 17.7. Currently there are 6 analysts that rate Signet Jewelers a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Signet Jewelers has been 1.1 million shares per day over the past 30 days. Signet Jewelers has a market cap of $6.4 billion and is part of the services sector and specialty retail industry. The stock has a beta of 1.63 and a short float of 4.1% with 2.06 days to cover. Shares are up 0.7% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Signet Jewelers as a buy. 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 solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • SIG's revenue growth has slightly outpaced the industry average of 6.8%. Since the same quarter one year prior, revenues slightly increased by 7.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • SIG's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, SIG has a quick ratio of 1.52, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Compared to its closing price of one year ago, SIG's share price has jumped by 27.24%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SIG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • SIGNET JEWELERS LTD' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SIGNET JEWELERS LTD increased its bottom line by earning $4.36 versus $3.72 in the prior year. This year, the market expects an improvement in earnings ($4.53 versus $4.36).
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Specialty Retail industry and the overall market on the basis of return on equity, SIGNET JEWELERS LTD has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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