Why Signet Jewelers (SIG) Stock Is Continuing To Soar Today

NEW YORK (TheStreet) --Shares of Signet Jewelers Ltd. (SIG) are higher by 6.91% to $115.49 on heavy volume in mid-afternoon trading on Thursday.

The jewelry company is continuing a gain it began in pre-market trading after announcing its total sales for the fiscal 2015 second quarter jumped 39% to $1.23 billion, from $880.2 million for the same period last year.

So far, 2.57 million shares of Signet have exchanged hands as compared to its average daily volume of 636,000 shares.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

The company attributes its increase in sales to its $1.46 billion acquisition of the jewelry retailer Zale Corp. (ZLC) , which created one of the world's largest jewelry retailers, according to MarketWatch.

Signet's adjusted earnings per share grew to $1 for the most recent quarter, from 98 cents per share for the fiscal 2014 second quarter.

Net income dropped to $58 million, or 72 cents per share, compared to $67.4 million, or 84 cents per share for the year ago quarter.

Separately, TheStreet Ratings team rates SIGNET JEWELERS LTD as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate SIGNET JEWELERS LTD (SIG) 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 growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

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