We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should Value Investors Buy Signet Jewelers (SIG) Stock?
Read MoreHide Full Article
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Signet Jewelers (SIG - Free Report) is a stock many investors are watching right now. SIG is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.
Investors should also recognize that SIG has a P/B ratio of 2.15. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. SIG's current P/B looks attractive when compared to its industry's average P/B of 2.72. SIG's P/B has been as high as 3.04 and as low as 1.65, with a median of 2.06, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SIG has a P/S ratio of 0.65. This compares to its industry's average P/S of 0.69.
Finally, investors will want to recognize that SIG has a P/CF ratio of 5.74. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. SIG's P/CF compares to its industry's average P/CF of 8.03. SIG's P/CF has been as high as 7.79 and as low as 4.34, with a median of 5.72, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Signet Jewelers is likely undervalued currently. And when considering the strength of its earnings outlook, SIG sticks out at as one of the market's strongest value stocks.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should Value Investors Buy Signet Jewelers (SIG) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Signet Jewelers (SIG - Free Report) is a stock many investors are watching right now. SIG is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.
Investors should also recognize that SIG has a P/B ratio of 2.15. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. SIG's current P/B looks attractive when compared to its industry's average P/B of 2.72. SIG's P/B has been as high as 3.04 and as low as 1.65, with a median of 2.06, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SIG has a P/S ratio of 0.65. This compares to its industry's average P/S of 0.69.
Finally, investors will want to recognize that SIG has a P/CF ratio of 5.74. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. SIG's P/CF compares to its industry's average P/CF of 8.03. SIG's P/CF has been as high as 7.79 and as low as 4.34, with a median of 5.72, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Signet Jewelers is likely undervalued currently. And when considering the strength of its earnings outlook, SIG sticks out at as one of the market's strongest value stocks.