Connect with us

Hi, what are you looking for?

Stock

Should I buy Signet Jewelers shares in July 2022?

Signet Jewelers Limited (NYSE: SIG) reported strong first-quarter results this month, but the company’s shares are still not able to stabilize.

The company’s management updated financial guidance for the second fiscal quarter and for the full 2023 fiscal year.

Store sales continue to grow

Signet Jewelers is the world’s largest retailer of diamond jewelry that operates approximately 2,800 stores with brands in the US, UK, and Canada.

The most popular brands of this company are Kay Jewelers, Zales, Diamonds Direct, Jared, Banter by Piercing Pagoda, JamesAllen.com, Rocksbox, Peoples Jewellers, H.Samuel and Ernest Jones.

Signet Jewelers reported first-quarter results at the beginning of this month; total revenue has increased by 8.9% Y/Y to $1.84 billion, while the non-GAAP earnings per share were $2.86 (beats by $0.48).

Positive information is that store sales grew 2.5% from the prior year as international sales accelerated while non-GAAP operating margin expanded in the face of growing inflation and supply chain problems. CEO Virginia C. Drosos said:

Our scale, strong balance sheet, and diversified banner portfolio provide flexibility to navigate macro-level uncertainties, deliver consistent annual double-digit operating margin, and continue investing in differentiated capabilities to widen our competitive advantages.

The company’s management updated financial guidance for the second fiscal quarter and for the full 2023 fiscal year. Total revenue for the second fiscal quarter should be between $1.79 billion and $1.82 billion vs. a consensus of $1.81 billion, while the income from operations should be between $188 million and $204 million.

Total revenue for the full fiscal year should be between $8.03 billion and $8.25 billion vs. a consensus of $8.03 billion, while the income from operations should be between $921 million and $974 million.

It is also important to mention that Signet declared a $0.20/quarterly share dividend which will be payable on August 26 to stockholders of record as of July 29, 2022.

Fundamentally looking, Signet Jewelers trades at less than three times TTM EBITDA, and with the market capitalization of $2.74 billion, shares of this company represent a good opportunity for long-term investors.

Technical analysis

Signet Jewelers’ stock price has fallen more than 25% from its recent highs above $80 registered in April, and the current share price could be a good entry price for long-term investors.

Data source: tradingview.com

If the price jumps above $65, it will signal to trade Signet Jewelers shares, and the next target could be $70.

The important support level stands at $50, and if the price falls below this level, it would be a “sell” signal, and we have the open way to $45.

Summary

Signet Jewelers Limited reported strong first-quarter results this month and the company’s management updated financial guidance for the full fiscal year. Signet Jewelers’ stock price has fallen more than 25% from its recent highs above $80 registered in April, and the current share price could be a good entry price for long-term investors.

The post Should I buy Signet Jewelers shares in July 2022? appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

You May Also Like

Investing

Maxing out your 401k retirement account is no easy feat. While people’s income and financial responsibilities differ, saving $20,500 per year boils down to...

Economy

Americans aged about 45 or older may dimly recall a song from the mid-1970s called “Convoy.” It was a campy part of the genre...

Stock

Tech companies and specifically social media giants have seen the prices of their shares drop in the past few months. Snap stock, for example,...

Investing

Most people are familiar with income taxes and sales taxes. Income taxes are automatically withheld from pay or paid by independent contractors, self-employed individuals...

Dislaimer: Investmentsspirit.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


Copyright © 2022 Investments Spirit