Keep an Eye on These NYSE-Listed Stocks – SIG, CHS

Signet Jewelers Limited

Signet Jewelers Limited (NYSE: SIG) is a diamond jewelry retailer. Its product mix includes bridal, fashion, watches, and other items. Purchases in the bridal category include engagement, wedding, and anniversary gifts. It is divided into three segments: North America, International, and Other.

Key Highlights:

• The company reported a 49.72% increase in sales to USD 7.83 billion in FY22 (ended January 29, 2022) from USD 5.23 billion in FY21 (ended January 30, 2021).
• SIG reported an increase in net income to USD 769.9 million in FY22 from a loss of USD 15.2 million in FY21.
• The company is operating at a longer cash conversion cycle of 96.3 days in FY22 compared to an industry median of 49.8 days.
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, with an RSI level of 52.01, approaching the overbought zone.
• Stock is leaning towards the mid-band of the 52-week range of USD 50.01 to USD 111.92.
• SIG's stock price has been relatively volatile throughout the year and has surged 36.04% in the past twelve months.

Conclusion:

Considering the company's topline performance, bottom-line fluctuations, long cash conversion days, macroeconomic headwinds, current trading levels, and hyped technical indicators, we recommend a "Watch" rating on the stock at the closing price of USD 77.68, down 1.88% as of March 25, 2022.

Three-Year Technical Price Chart (as of March 25, 2022). Source: REFINITIV, Analysis by Kalkine Group

Technical Analysis Summary:

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Note 1: The reference data in this report has been partly sourced from REFINITIV.  

Note 2: Investment decision should be made depending on the investors' appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above. 

Chico's FAS, Inc.

Chico's FAS, Inc. (NYSE: CHS) is an apparel store that sells women's clothing and accessories through a portfolio of private-label brands. Chico's, White House/Black Market, and Soma Intimates are among the brands available. The brands primarily target women over the age of 35 with moderate to high-income levels.

Key Highlights:

• The company reported a significant increase in net sales to USD 1.81 billion in FY22 (ended January 29, 2021) from USD 1.32 billion in FY21 (ended January 30, 2021).
• CHS reported a massive increase in net income to USD 46.22 million in FY22, from a loss of USD 360.14 million in FY21.
• The company's EBITDA margin has improved yearly, although it is still 6.9% in FY22, compared to the industry median of 10.6%.
• Stock is currently trading between its crucial short-term (50-day) and long-term (200-day) SMA support levels.
• Stock is leaning towards the mid-band of the 52-week range of USD 2.67 to USD 7.29.
• CHS's stock price has fallen 31.46% in the past nine months.

Conclusion:

Considering the company's improving fundaments, industry lagging margins, macro headwinds, and other technical indicators, we recommend a "Watch" rating on the stock at the closing price of USD 4.75, down 0.84% as of March 25, 2022.

Three-Year Technical Price Chart (as of March 25, 2022). Source: REFINITIV, Analysis by Kalkine Group

Technical Analysis Summary:

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Note 1: The reference data in this report has been partly sourced from REFINITIV.  

Note 2: Investment decision should be made depending on the investors' appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above.

Disclaimer

References to ‘Kalkine’, ‘we’, ‘our’ and ‘us’ refer to Kalkine Limited.

This website is a service of Kalkine Limited. Kalkine Limited is a private limited company, incorporated in England and Wales with registration number 07903332. Kalkine Limited is authorised and regulated by the Financial Conduct Authority under reference number 579414.

The article has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. No advice or information, whether oral or written, obtained by you from Kalkine or through or from the service shall create any warranty not expressly stated. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation.

Kalkine does not offer financial advice based upon your personal financial situation or goals, and we shall NOT be held liable for any investment or trading losses you may incur by using the opinions expressed in our publications, market updates, news alerts and corporate profiles. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. Kalkine’s non-personalised advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested.

Kalkine Media Limited, an affiliate of Kalkine Limited, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.