Are you a value investor? This 1 stock could be the perfect choice

Making full use of the opportunities offered by the stock market and investing with confidence are common goals for both new and old investors.

Achieving these goals is made easier by the Zacks Style Scores, a unique set of guidelines that rate stocks based on popular investment methodologies, namely value, growth and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which can beat the market over the long term.

Why investors should pay attention to this value stock

Unlike growth or momentum investors, value investors are concerned with finding good stocks at good prices and figuring out which companies are trading below their true value before the broader market notices. The Value Style Score uses metrics such as P/E, PEG, price-to-sales and price-to-cash flow to select the most attractive and cheapest stocks.

Seal (SIG)

Signet Jewelers Limited (SIG) was founded in 1950 and is headquartered in Hamilton, Bermuda. The company is a retailer of diamond jewelry, watches, and other products. The company operates in the United States, Canada, the United Kingdom, the Republic of Ireland, and the Channel Islands. It is often considered the leading retailer of diamond jewelry. We note that as of May 4, 2024, Signet had 2,676 stores.

SIG has a Value Style Score of A and a VGM Score of B and carries a Zacks Rating of Rank #3 (Hold). Signet shares trade at an earnings multiple of 8.2X, as well as a PEG ratio of 0.9, a price-to-cash-flow ratio of 5.4X and a price-to-sales ratio of 0.6X.

A company’s earnings performance is also important for value investors. For fiscal year 2025, one analyst has revised his earnings forecast for SIG upwards in the last 60 days, while the Zacks Consensus Estimate rose from $0.00 to $10.60 per share. SIG also has an average earnings surprise of 29.3%.

Given its solid Zacks Rank, notable earnings and valuation metrics, and impressive Value and VGM Style Scores, investors should take the time to consider SIG for their portfolio.

Want the latest recommendations from Zacks Investment Research? Download the 7 best stocks for the next 30 days today. Click here to get this free report

Signet Jewelers Limited (SIG): Free Stock Analysis Report

To read this article on Zacks.com, click here.

Zacks Investment Research