Signet Jewelers (SIG) Moving On Heavy Volume In The Pre-Market Hours

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 $64.4 million.
  • SIG traded 100,379 shares today in the pre-market hours as of 8:54 AM, representing 17.6% of its average daily volume.

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More details on SIG:

Signet Jewelers Limited is engaged 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 0.7%. SIG has a PE ratio of 23.4. 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 634,600 shares per day over the past 30 days. Signet Jewelers has a market cap of $8.7 billion and is part of the services sector and specialty retail industry. The stock has a beta of 1.85 and a short float of 2.3% with 2.82 days to cover. Shares are up 37.8% year-to-date as of the close of trading on Tuesday.

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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, expanding profit margins, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • SIG's revenue growth has slightly outpaced the industry average of 0.6%. Since the same quarter one year prior, revenues slightly increased by 6.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • SIG's debt-to-equity ratio is very low at 0.00 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 2.03, which demonstrates the ability of the company to cover short-term liquidity needs.
  • SIGNET JEWELERS LTD has improved earnings per share by 6.2% 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. During the past fiscal year, SIGNET JEWELERS LTD increased its bottom line by earning $4.57 versus $4.36 in the prior year. This year, the market expects an improvement in earnings ($5.32 versus $4.57).
  • 41.21% is the gross profit margin for SIGNET JEWELERS LTD which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 9.14% is above that of the industry average.
  • Net operating cash flow has significantly increased by 62.97% to $73.50 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 25.53%.

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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