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.
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