Valentine’s Day is quickly approaching. This is the time of the year when certain companies benefit as people buy gifts for their significant others.
Clearly, it’s a positive for jewelry stocks. Other supportive factors include the upcoming stimulus payments, high savings rates, and expectations of an increase in spending in the coming months as the pandemic recedes.
Below, we provide a look at three jewelry stocks with the potential to pop this Valentine’s Day and also in the weeks and months that follow: Signet Jewelers (SIG), Movado Group (MOV), and Fossil Group (FOSL).
Signet Jewelers (SIG)
SIG is a specialty retail jewelry business. SIG sells jewelry, watches, and other sundries given as gifts. The company has operations in the United States, the Republic of Ireland, Canada, the Channel Islands, and the United Kingdom. This Bermuda-based business was launched way back in 1950.
SIG’s specialty is diamond jewelry, making it one of the better stocks for Valentine’s Day investors. SIG has a forward P/E ratio of 10.64, meaning it is likely undervalued even though it is trading merely a dollar and change below its 52-week high of $44.26.
SIG has B grades in the Quality, Growth, and Value POWR Rating components. You can find out more about SIG’s Momentum, Sentiment, and Stability components by clicking here. SIG is ranked 6th of nearly 70 publicly traded stocks in the Fashion & Luxury stocks segment. You can learn more about the Fashion & Luxury space by clicking here.
SIG is nearing its 52-week high yet the top analysts insist the stock has more than 7% upside potential, setting a high target price of $45. Though SIG will close 150 stores as a result of the pandemic, those sites are poor performing locations, primarily at malls that are gradually being phased out of existence. All in all, SIG has more than 3,000 stores across the globe, each of which will likely rake in the cash this Valentine’s Day.
Movado Group (MOV)
MOV designs make and distribute high-quality watches. The company’s watches are available at a wide array of prices, meaning they are within the budgetary constraints of everyday people and also pique the interest of the wealthy. MOV watches are sold in North America, South America, Asia, and Europe. MOV’s manufacturing takes place in Switzerland yet its corporate headquarters is in New Jersey.
MOV is currently trading at $21.57, slightly below its 52-week high of $22.98. MOV’s forward P/E ratio is 10.81, indicating it has plenty of runway remaining even though it is nearing its high for the past year. MOV fares well in the POWR Ratings with B grades in the Quality, Value, and Growth Components. You can find out more about MOV’s additional POWR Ratings components of Momentum, Sentiment, and Stability by clicking here.
Of the 66 stocks in the Fashion & Luxury industry, MOV is ranked 5th. If you would like to learn more about the stocks traded in the Fashion & Luxury space, click here. Though watches certainly are not the most popular V-day gift, those looking to splurge on their sweetheart are willing to seriously consider buying a timepiece as it provides significantly more functionality than a piece of jewelry. In other words, MOV might have a solid quarter ahead.
Fossil Group (FOSL)
FOSL is a brand just about everyone recognizes. Whether you are a millennial, a baby boomer, a member of the Generation Z age cohort, or any other age, there is a good chance you not only know about FOSL but have respect for the company’s consumer fashion accessories. FOSL designs develop, make, and distribute these fashionable items. FOSL offerings include jewelry, watches, items made of leather, optical frames, belts, handbags, and all sorts of other fashionable accessories. Examples of FOSL brands include DKNY, Michael Kors, Marc by Marc Jacobs, Diesel, Armani Exchange, and Skagen Denmark.
FOSL is ranked 7th of 66 publicly traded companies in the Fashion & Luxury space. You can learn more about stocks in the Fashion & Luxury industry by clicking here. FOSL has an A grade in its POWR Rating Value component along with B grades in the Quality and Growth components. If you would like to learn more about how FOSL fares in the Momentum, Sentiment, and Stability components, click here.
FOSL is making quite the smooth pivot away from conventional in-store sales while enhancing its balance sheet and streamlining operations. FOSL’s e-commerce sales are up 66% during the pandemic. The company’s third-party web-based marketplaces grew 44% during this period of time. Add in the fact that FSL’s sales growth in mainland China is improving and investors have all the more reason to be bullish about the stock.
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SIG shares were trading at $44.12 per share on Wednesday afternoon, up $1.88 (+4.45%). Year-to-date, SIG has gained 61.79%, versus a 2.51% rise in the benchmark S&P 500 index during the same period.
About the Author: Patrick Ryan
Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More…
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