Signet's Turnaround Still Looks Underappreciated

Jewelry stocks don't get a lot of attention on Wall Street, and it's easy to see why. It's a highly fragmented, slow-growth, mature industry, and only a handful of pure-play jewelry stocks are available on the market.

Signet Jewelers (NYSE: SIG), the parent of well-known brands like Kay, Zales, and Jared, is the world's biggest diamond retailer and has quietly undergone an impressive turnaround in the last few years. Even after a recent pullback, the stock is up nearly 300% over the last three years, thanks to its Inspiring Brilliance strategy that's cut costs by closing stores and streamlining expenses and focused on driving online sales, expanding profit margins along the way.

Like other consumer discretionary products, the company did benefit from some pandemic tailwinds as stimulus checks helped promote spending at some of its lower-end brands, but the structural improvements the company has made look built to last beyond the health crisis, and its first-quarter earnings report helps show why.

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Source Fool.com