Is Signet Jewelers Stock Built to Withstand More Downside?
Signet Jewelers (SIG) stock is down 9.8% in 21 trading days. The recent slide reflects renewed concerns around cautious holiday guidance and online integration challenges, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Signet Jewelers stands today.
- Size: Signet Jewelers is a $3.7 Bil company with $6.8 Bil in revenue currently trading at $89.19.
- Fundamentals: Last 12 month revenue growth of -1.6% and operating margin of 7.9%.
- Liquidity: Has Debt to Equity ratio of 0.36 and Cash to Assets ratio of 0.05
- Valuation: Signet Jewelers stock is currently trading at P/E multiple of 24.8 and P/EBIT multiple of 7.2
- Has returned (median) 48.1% within a year following sharp dips since 2010. See SIG Dip Buy Analysis.
These metrics point to a Weak operational performance, alongside Low valuation – making the stock Fairly Priced. For details, see Buy or Sell SIG Stock
That brings us to the key consideration for investors worried about this fall: how resilient is SIG stock if markets turn south? This is where our downturn resilience framework comes in. Suppose SIG stock falls another 20-30% to $62 – can investors comfortably hold on? Turns out, the stock has fared much worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
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2022 Inflation Shock
- SIG stock fell 54.2% from a high of $109.80 on 18 November 2021 to $50.25 on 24 May 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
- The highest the stock has reached since then is $109.49 on 2 June 2024 , and currently trades at $89.19
| SIG | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -54.2% | -25.4% |
| Time to Full Recovery | Not Fully Recovered | 464 days |
2020 Covid Pandemic
- SIG stock fell 80.6% from a high of $30.13 on 16 January 2020 to $5.84 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 23 November 2020
| SIG | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -80.6% | -33.9% |
| Time to Full Recovery | 245 days | 148 days |
2018 Correction
- SIG stock fell 88.5% from a high of $95.63 on 4 January 2017 to $11.01 on 4 September 2019 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 1 November 2021
| SIG | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -88.5% | -19.8% |
| Time to Full Recovery | 789 days | 120 days |
2008 Global Financial Crisis
- SIG stock fell 88.3% from a high of $51.64 on 7 May 2007 to $6.06 on 2 February 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 25 October 2012
| SIG | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -88.3% | -56.8% |
| Time to Full Recovery | 1361 days | 1480 days |
Feeling jittery about SIG stock? Consider portfolio approach.
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