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.
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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