NEW YORK, June 03, 2026 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into Tennant Company (NYSE:TNC) for potential violations of the federal securities laws.
If you invested in Tennant, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/tennant-company-class-action-lawsuit.
Key Details of the Tennant ($TNC) Class Action Investigation:
Investigation Overview: Securities fraud related to Tennant’s implementation and rollout of its new, company-wide enterprise resource planning (“ERP”) systemStock Decline: February 24, 2026 – 23.4% Stock DropAction: Contact BFA Law to discuss your rights
Why is Tennant Being Investigated for Securities Fraud?
Tennant manufactures industrial cleaning equipment, including large mechanical floor scrubbers and sweepers used in warehouses, retail stores, and other commercial facilities.
BFA is investigating whether Tennant made false and misleading statements to investors regarding the implementation and rollout of a large-scale ERP system. For instance, Tennant assured investors the project was “progressing as we’ve anticipated,” was “on time and on budget,” and that the launch of the ERP in its Asia-Pacific region had been “successful,” with Tennant stating it had “mitigated disruptions and stabilized operations.”
Why did Tennant’s Stock Drop?
On February 24, 2026, Tennant revealed that the rollout of its new ERP system in North America caused severe operational disruptions, including that it was unable to process and ship customer orders following the launch of the system. As a result, Tennant lost roughly $30 million in sales and would need to spend more than $20 million in 2026 to remediate the issues, compared to roughly $5 million the company had planned to spend.
This news caused the price of Tennant stock to drop $19.28 per share, more than 23%, from a closing price of $82.30 per share on February 23, 2026, to $63.02 per share on February 24, 2026.
Click here for more information: https://www.bfalaw.com/cases/tennant-company-class-action-lawsuit.
What Can You Do?
If you invested in Tennant, you may have legal options and are encouraged to submit your information to the firm.
All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, “Litigation Stars” by Benchmark Litigation, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, please visit https://www.bfalaw.com.
NEW YORK, June 10, 2026 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into Tennant Company (NYSE:TNC) for potential violations of the federal securities laws.
If you invested in Tennant, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/tennant-company-class-action-lawsuit.
Key Details of the Tennant ($TNC) Class Action Investigation:
Investigation Overview: Securities fraud related to Tennant’s implementation and rollout of its new, company-wide enterprise resource planning (“ERP”) systemStock Decline: February 24, 2026 – 23.4% Stock DropAction: Contact BFA Law to discuss your rights Why is Tennant Being Investigated for Securities Fraud?
Tennant manufactures industrial cleaning equipment, including large mechanical floor scrubbers and sweepers used in warehouses, retail stores, and other commercial facilities.
BFA is investigating whether Tennant made false and misleading statements to investors regarding the implementation and rollout of a large-scale ERP system. For instance, Tennant assured investors the project was “progressing as we’ve anticipated,” was “on time and on budget,” and that the launch of the ERP in its Asia-Pacific region had been “successful,” with Tennant stating it had “mitigated disruptions and stabilized operations.”
Why did Tennant’s Stock Drop?
On February 24, 2026, Tennant revealed that the rollout of its new ERP system in North America caused severe operational disruptions, including that it was unable to process and ship customer orders following the launch of the system. As a result, Tennant lost roughly $30 million in sales and would need to spend more than $20 million in 2026 to remediate the issues, compared to roughly $5 million the company had planned to spend.
This news caused the price of Tennant stock to drop $19.28 per share, more than 23%, from a closing price of $82.30 per share on February 23, 2026, to $63.02 per share on February 24, 2026.
Click here for more information: https://www.bfalaw.com/cases/tennant-company-class-action-lawsuit.
What Can You Do?
If you invested in Tennant, you may have legal options and are encouraged to submit your information to the firm.
All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, “Litigation Stars” by Benchmark Litigation, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, please visit https://www.bfalaw.com.
Here are three stocks with buy rank and strong income characteristics for investors to consider today, June 11:
Fomento Económico Mexicano, S.A.B. de C.V. (FMX - Free Report) : This Coca-Cola bottling company witnessed the Zacks Consensus Estimate for its current year earnings increasing 26.5% the last 60 days.
This Zacks Rank #1 company has a dividend yield of 2%, compared with the industry average of 0.0%.
Tennant Company (TNC - Free Report) : This cleaning equipment company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.2% the last 60 days.
This Zacks Rank #1 company has a dividend yield of 1.4%, compared with the industry average of 0.0%.
Hewlett Packard Enterprise Company (HPE - Free Report) : This information technology company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5% in the last 60 days.
This Zacks Rank #1 company has a dividend yield of 1.2%, compared with the industry average of 0.0%.
See the full list of top ranked stocks here.
Find more top income stocks with some of our great premium screens.
Last week, I wrote about two “future-proof” stocks to help shield your portfolio against the threats of AI. Artificial intelligence was causing mayhem in the software industry, and former SaaS superstars like Salesforce Inc. (CRM) and SAP SE (SAP) were suddenly looking less shiny. Shares of these firms have fallen 40% or more from their peaks.
I offered fertilizer company The Mosaic Co. (MOS) and Australian whiskey maker Lark Distilling Co. Ltd. (LRK) as defenses from the disruption.
But what about having a good AI offense as well?
That’s more of a challenge. The best time to buy AI chip makers was six months ago when prices were still reasonable.
Since then, memory-chip maker Micron Technology Inc. (MU) has risen 262%, while energy storage firm Fluence Energy Inc. (FLNC) has jumped 111%. The “obvious” plays are now trading at valuations that would make venture capitalists uneasy.
So, it’s challenging… but not impossible.
In a new special presentation, InvestorPlace Senior Analyst Eric Fry says there’s still time to get in on a second AI wave. These are smaller companies that are building the “Golden Rivets,” which are the essential components that power first-wave firms like Micron and Fluence. Without them, it’s like trying to run a race car without fuel.
During the presentation, Eric reveals a whole host of AI bottlenecks – raw materials, digital memory, energy – and identifies the specific companies that are now seeing unprecedented demand thanks to being in the right place at the right time.
You can click here now to watch his FutureProof 2026 event.
Now, to give you a sense of these “Golden Rivet” makers, I’d like to highlight two companies at the forefront of the AI bottlenecks… and that have been overlooked by Wall Street almost entirely so far. You’ll quickly see why I’m so excited for Eric’s picks.
A Dominant Company in the Background Few people have ever heard of copper sulfate plating – the technology that creates the ultrathin wiring in modern chip packages.
Even fewer people have heard of JCU Corp (TYO:4975), the under-the-radar Japanese firm that dominates that industry.
In 2019, the Tokyo-based firm estimated it had a 70% global market share in copper sulfate plating for smartphones and tablets. That figure has likely grown, as shown by JCU’s sky-high operating margins that continue to rise. It’s now on track to earn 40% operating margins this year, up from 27% in 2019.
That level of profitability is rare in manufacturing. It’s even more remarkable given Japan’s traditionally low-margin corporate environment. To give you a sense, JCU earns higher profit margins than Apple Inc. (AAPL) does from selling premium iPhones.
That’s because JCU’s products sit inside a crucial, failure-sensitive part of chipmaking. Here’s a simplified version of how it works…
A chip package starts as a specialized insulating material with tiny holes drilled into it with lasers. The material is then cleaned, chemically treated, and dipped into a copper sulfate bath to deposit an ultrafine copper layer exactly where it’s needed. (This is the step JCU allows.)
After that, the package is sent through an etching process, where excess copper is removed, and the finished piece has silicon components-attached in a die-bonding process. And if a package needs multiple layers, the process starts over again.
This matters because packaging defects can ruin an entire chip. If copper wiring is defective, the final product could perform poorly, degrade over time, or simply not work at all. Data centers would end up with expensive paperweights.
That’s where JCU’s technology comes in. The company offers a precise recipe and control system for copper sulfate plating used to create wiring of 0.8 micrometers and less –almost 10 times finer than what conventional methods can achieve.
In addition, JCU’s historical dominance means that it’s baked into the process of its customers. Chipmakers know how to precisely etch the copper from JCU’s recipe for the right outcome each time. Why should they risk rolling the dice on a new copper sulfate plating system when the current system works so well?
Two factors are now putting JCU on a high growth path.
The first is the rise of 2.5D and 3D chips. Stacked chips require multiple rounds of copper plating. They also have connection areas called “vias” that send electrical signals between layers, which requires a specialized form of plating. JCU has launched a brand called TIPHARES to deal specifically with stacked chips and anticipates strong demand.
The second is that AI data centers have created a shortage in virtually every computer component. GPUs, hard drives, NAND flash memory, and DRAM have seen their prices rise uncontrollably, and some makers have already sold out their entire 2026 inventory.
That means we should expect a ramp-up of production across the entire semiconductor industry, benefiting JCU at every turn. Virtually every modern semiconductor requires packaging of some kind, which all feeds into the demand for this Japanese firm. JCU is a natural bottleneck because the company is so dominant in its niche.
That’s why I believe estimates for JCU’s growth are far too conservative. Analysts are currently estimating just 31.5 billion yen in 2027 revenues (a 5% annual growth rate), which is roughly what JCU was guiding for in 2024… well before the semiconductor shortages began.
To put that into perspective, revenues already rose 14% in 2025 and operating profits surged 31%.
It’s also noteworthy that markets have not yet fully recognized JCU’s value. Shares trade at just 16X forward earnings, which is already ludicrously low for a company with 40% operating margins. Though shares may be difficult for American investors to buy, JCU’s dominance of its industry could make them worth it.
Rolling the Dice Those seeking a higher risk/reward “Golden Rivet” company will find one in Cohu Inc. (COHU).
Cohu is a semiconductor test and inspection equipment maker that competes directly with industry giants Teradyne Inc. (TER) and Advantest Corp. (ATEYY). The two larger firms control over 80% of the overall chip testing equipment market and spend roughly as much on research and development (R&D) annually as Cohu generates in total sales.
Traditionally, that’s left Cohu with scraps. The San Diego-based firm focuses on the less desirable midrange market and on test handlers – the robots that physically transport the chips being tested. Margins in both are lower and far more cyclical, because customers can delay purchases without fear of technologically falling behind.
Since 2000, Cohu has posted 16 years of positive operating income and 10 years of negative income. Automotive, industrial, and mobile manufacturers are notoriously tough customers.
COHU operating margin %
Source: Refinitiv
This cyclicality means Cohu’s shares now trade 40% below their 2021 peak. Revenues have shrunk 48% since 2022 on a cyclical downturn, and net income turned negative starting in 2024. In an earnings call last year, CFO Jeffrey Jones admitted that customers were delaying shipments, forcing the firm to cut 2025 forecasts.
However, insatiable demand for AI chips is changing that picture. Last month, Cohu’s management announced that annual revenue growth had turned positive again, and that margins were on the rise. This was driven by both a cyclical uptick in mid-end customers, as well as strong demand from customers working with AI data centers, high-bandwidth memory, and physical AI applications. System orders (the higher-margin type) rose 47% quarter-on-quarter, and analysts now expect net income to flip positive again this year. Wall Street forecasts profits to double again in 2027.
Cohu has also seen some early success with its new Eclipse platform, which is designed specifically to test AI data center chips. Two major customers have now adopted Eclipse for AI testing, and Cohu’s management recently said they now expect to achieve the “upper end” of revenue forecasts for their high-performance computing (HPC) segment this year. They foresee Eclipse shipments accelerating in the second and third quarters.
This is all excellent news for this traditionally cyclical firm. Hyperscalers like Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN) are projected to spend trillions of dollars through at least 2030 building out AI data centers, and these big spenders have already triggered shortages in the AI chip testing market. In January, Advantest said it was speeding up its expansion plans to keep up and boosted its profit forecast by 21%. Teradyne has reported similarly bullish outlooks.
This is particularly bullish news for Cohu, since its larger rivals are now having trouble keeping up with demand. Customers may switch to the smaller supplier simply to access the AI chip testing they need.
That makes Cohu’s stock worth considering. The lows of cyclical companies might be very low, but that also makes their highs almost stratospheric.
The Golden Rivets The two companies I mentioned here both have some downsides. JCU is potentially a value trap, because it receives virtually no Wall Street coverage and is difficult for American investors to buy. Meanwhile, Cohu is a cyclical play with far higher downside risks. Only active traders should consider such investments.
That’s why I want to make sure you tune in to Eric’s latest presentation, where he talks about 15 separate “Golden Rivet” picks before homing in on his top choices. These are companies like Nvidia Corp. (NVDA), Advanced Micro Devices Inc. (AMD) and Broadcom Inc. (AVGO) that have solved AI bottlenecks… except Eric’s new picks have yet to see the 10X gains those companies have because they’re still early in the cycle.
But don’t wait long. We’ll only be replaying this free presentation until midnight on Wednesday, so be sure to watch his special talk before then.
Until next week,
Thomas Yeung, CFA
Market Analyst, InvestorPlace
P.S. I will be revisiting my top picks for 2026 in the coming weeks as we enter the second quarter. In the meantime, Larimar Therapeutics Inc. (LRMR) is added to that list.
Thomas Yeung is a market analyst and portfolio manager of the Omnia Portfolio, the highest-tier subscription at InvestorPlace. He is the former editor of Tom Yeung’s Profit & Protection, a free e-letter about investing to profit in good times and protecting gains during the bad.
Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:
Cohu (COHU - Free Report) is a leading supplier of semiconductor test and inspection handlers, micro-electro mechanical system (MEMS) test modules, test contactors and thermal sub-systems used by global semiconductor manufacturers and test subcontractors. The Zacks Consensus Estimate for its current year earnings has been revised almost 19.7% downward over the last 60 days.
BBB Foods Inc. (TBBB - Free Report) operates grocery retail stores principally in Mexico. The Zacks Consensus Estimate for its current year earnings has been revised 17.1% downward over the last 60 days.
Amerant Bancorp (AMTB - Free Report) is a bank holding company which provides deposit, credit and wealth management services to individuals and businesses primarily in the U.S., as well as select international clients. The Zacks Consensus Estimate for its current year earnings has been revised almost 11.3% downward over the last 60 days.
Cohu, Inc. (NASDAQ: COHU - Get Free Report)'s share price crossed above its two hundred day moving average during trading on Thursday. The stock has a two hundred day moving average of $25.42 and traded as high as $31.78. Cohu shares last traded at $30.23, with a volume of 556,159 shares changing hands. Analyst Ratings
SAN DIEGO--(BUSINESS WIRE)--Cohu, Inc. (NASDAQ: COHU), a global supplier of equipment and services optimizing semiconductor manufacturing yield and productivity, today announced that two customers have placed follow-on orders totaling $30 million for the Eclipse platform configured with active thermal control for testing of next generation high-performance computing (HPC) processors. The orders, which are expected to be delivered over the next couple of quarters, expand Cohu's presence in the f.
SAN DIEGO--(BUSINESS WIRE)--Cohu, Inc. (NASDAQ: COHU), a global supplier of equipment and services optimizing semiconductor manufacturing yield and productivity, will release financial results for first quarter 2026 on Thursday, April 30, 2026, at 1:00 p.m. Pacific Time/4:00 p.m. Eastern Time. The Company will host a live conference call and webcast with presentation materials to discuss the results at 1:30 p.m. Pacific Time/4:30 p.m. Eastern Time. Interested parties may listen live via webcast.
Cohu (COHU +7.53%) stock is moving higher in Monday's trading. The tech company's share price was up 7% as of 3:15 p.m. ET. Meanwhile, the S&P 500 was down 0.3%, and the Nasdaq Composite was off 0.4%.
Cohu is gaining ground today thanks to bullish coverage from an analyst. With today's pop, the stock is now up roughly 90% across 2026's trading.
Image source: Getty Images.
This analyst firm sees Cohu stock going to $50 Before the market opened this morning, B. Riley published new coverage on Cohu and maintained a buy rating on the stock. The investment firm also raised its one-year target on the stock from $41 per share to $50 per share. As of this writing, the new price target still suggests additional upside of roughly 13%.
Today's Change
(
7.53
%) $
4.10
Current Price
$
58.57
What's next for Cohu? B. Riley's analysts see strong demand in the wafer-fab-equipment space and promising trends in the memory-chip industry creating a favorable backdrop for Cohu. On the heels of today's pop, the company is now valued at roughly $2.1 billion and trades at approximately 4 times this year's expected sales and roughly 83 times expected earnings. With demand stemming from artificial intelligence (AI) creating bullish catalysts in the semiconductor equipment space, Cohu could be poised to serve up more wins.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
On April 28, 2026, Cohu Inc COHU shares fell 4.4% to a current price of $44.15, reflecting a volatile trading environment. The stock's performance has fluctuated significantly over the past year, with a 52-week high of $47.69 and a low of $15.34.
GF Value™ verdict: Current price is $44.15, while GF Value™ estimates fair value at $24.07, indicating the stock is 83.4% overvalued.GF Score™ of 57/100 suggests the stock is rated average based on key performance metrics.Notable signal: Insiders have sold $0.4 million in shares over the last three months, with no insider buying reported. Is COHU Overvalued or Undervalued? Cohu Inc's current share price of $44.15 is significantly higher than its GF Value™ of $24.07. This large discrepancy indicates that the stock is overvalued by approximately 83.4%. The GF Valuation label indicates that COHU is significantly overvalued, which poses a risk for potential investors seeking a margin of safety. A stock valued above its intrinsic worth may not provide adequate returns in the long term, especially if the market corrects such discrepancies.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. The substantial overvaluation suggests that investors may want to exercise caution before entering a position in COHU, as the potential for a market correction could lead to a steep decline in share prices.
How Does COHU's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 83.9x 17.8x Currently, Cohu's forward P/E ratio of 83.9x is significantly above its 5-year median P/E of 17.8x. This analysis supports the GF Value™ verdict, reinforcing the conclusion that COHU is trading at an elevated valuation compared to its historical benchmarks.
What Does COHU's GF Score™ Tell Us? Metric Rating GF Score™ 57/100 Financial Strength 6/10 Profitability 4/10 Growth 1/10 Valuation 1/10 Momentum 9/10 The GF Score™ of 57/100 indicates that Cohu Inc has mixed performance across various metrics. Its strongest area lies in momentum, with a high rank of 9/10, suggesting a favorable short-term price trend. However, the company scores only 1/10 in both growth and valuation, highlighting significant weaknesses in its financial growth prospects and current valuation levels. This mixed score may indicate that while COHU has shown strong recent performance, underlying fundamentals may not support this momentum.
What Are Insiders Doing with COHU Stock? Insider activity over the past three months has shown that insiders sold $0.4 million worth of shares, with no buying activity reported. This selling may signal a lack of confidence in the company's future prospects or a strategy to realize gains after significant price appreciation. Such patterns can raise red flags for external investors, suggesting that insiders may expect potential challenges ahead.
What This Means for Investors Based on the analysis of GF Value™, Cohu Inc COHU is currently overvalued. The significant gap between its market price and intrinsic value suggests that the stock may not present a favorable investment opportunity at this time.
For the complete analysis, visit the Cohu Inc COHU stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is COHU's GF Score™?
Cohu's GF Score™ is 57/100, indicating an average rating based on key performance metrics.
Is COHU overvalued or undervalued?
COHU is overvalued, with a current price of $44.15 compared to a GF Value™ of $24.07, indicating substantial overvaluation.
What is COHU's P/E ratio?
COHU's forward P/E is 83.9x, which is significantly above its historical median of 17.8x, supporting the conclusion that the stock is overvalued.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Ultra Clean Holdings (UCTT - Free Report) came out with quarterly earnings of $0.31 per share, beating the Zacks Consensus Estimate of $0.27 per share. This compares to earnings of $0.28 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +14.82%. A quarter ago, it was expected that this chipmaking equipment services company would post earnings of $0.23 per share when it actually produced earnings of $0.22, delivering a surprise of -4.35%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Ultra Clean, which belongs to the Zacks Electronics - Manufacturing Machinery industry, posted revenues of $533.7 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.55%. This compares to year-ago revenues of $518.6 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Ultra Clean shares have added about 220.1% since the beginning of the year versus the S&P 500's gain of 4.8%.
What's Next for Ultra Clean?While Ultra Clean has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Ultra Clean was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.35 on $548.44 million in revenues for the coming quarter and $1.90 on $2.39 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Manufacturing Machinery is currently in the top 18% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Cohu (COHU - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on April 30.
This maker of semiconductor test equipment is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of +250%. The consensus EPS estimate for the quarter has been revised 28.6% lower over the last 30 days to the current level.
Cohu's revenues are expected to be $122 million, up 26% from the year-ago quarter.
SAN DIEGO--(BUSINESS WIRE)--Cohu, Inc. (NASDAQ: COHU), a global supplier of equipment and services optimizing semiconductor manufacturing yield and productivity, today reported fiscal 2026 first quarter net sales of $125.1 million and GAAP loss of $12.1 million or $0.26 per share. Cohu also reported first quarter 2026 non-GAAP income of $0.6 million or $0.01 per share. GAAP Results (in millions, except per share amounts) Q1 FY 2026 Q4 FY 2025 Q1 FY 2025.
Cohu (COHU - Free Report) came out with quarterly earnings of $0.01 per share, missing the Zacks Consensus Estimate of $0.03 per share. This compares to a loss of $0.02 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -69.97%. A quarter ago, it was expected that this maker of semiconductor test equipment would post earnings of $0.07 per share when it actually produced a loss of $0.15, delivering a surprise of -314.29%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Cohu, which belongs to the Zacks Electronics - Manufacturing Machinery industry, posted revenues of $125.12 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 2.56%. This compares to year-ago revenues of $96.8 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Cohu shares have added about 92.1% since the beginning of the year versus the S&P 500's gain of 4.2%.
What's Next for Cohu?While Cohu has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Cohu was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.16 on $128.75 million in revenues for the coming quarter and $0.57 on $512.45 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Manufacturing Machinery is currently in the top 16% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Kulicke and Soffa (KLIC - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 6.
This semiconductor equipment maker is expected to post quarterly earnings of $0.67 per share in its upcoming report, which represents a year-over-year change of +228.9%. The consensus EPS estimate for the quarter has been revised 0.8% higher over the last 30 days to the current level.
Kulicke and Soffa's revenues are expected to be $230 million, up 42% from the year-ago quarter.
The stock has surged higher in 2026 after being in a downtrend, but valuations have arguably gotten too high relative to earnings growth. The latest report showed several good things, which includes an upgraded FY2026 outlook and strong gains in the top and the bottom line. The latest report also showed earnings are not growing fast enough to meet the current financial model or current elevated valuations.
SAN DIEGO--(BUSINESS WIRE)--Cohu, Inc. (NASDAQ: COHU), a global supplier of equipment and services optimizing semiconductor manufacturing yield and productivity, today announced that a leading semiconductor manufacturer has placed multiple orders totaling approximately $5 million for the DiamondX platform, delivering high-current capability, ultra-low resistance measurement accuracy and scalable multi-site throughput. The systems will support development and manufacturing of next-generation gal.
SAN DIEGO--(BUSINESS WIRE)--Cohu, Inc. (NASDAQ: COHU), a global supplier of equipment and services optimizing semiconductor manufacturing yield and productivity, today announced that management will participate at the following investor conferences:
TD Cowen 54th Annual Technology, Media & Telecom Conference
Location: InterContinental New York Barclay, New York, NY
May 27, 2026
23rd Annual Craig-Hallum Institutional Investor Conference
Location: Depot Renaissance Hotel Minneapolis, MN
May 28, 2026
Stifel 2026 Cross Sector Insight Conference
Location: InterContinental Boston, MA
June 2, 2026
2026 Evercore Global TMT Conference
Location: the Omni San Francisco Hotel in San Francisco, CA
June 3, 2026
Portfolio managers and analysts should contact their respective banking representative to schedule a meeting at these conferences.
Presentation materials will be made concurrently available on the Investor Relations section of the Company’s website, www.cohu.com.
About Cohu:
Cohu (NASDAQ: COHU) was founded in 1947 and is a global technology leader supplying test, automation, inspection & metrology products, software analytics solutions and services to the semiconductor industry. Additional information can be found at www.cohu.com.
For press releases and other information of interest to investors, please visit Cohu’s website at www.cohu.com.
Cohu, Inc. (NASDAQ: COHU), a global supplier of equipment and services optimizing semiconductor manufacturing yield and productivity, today announced that management will participate at the following investor conferences:
TD Cowen 54th Annual Technology, Media & Telecom Conference
Location: InterContinental New York Barclay, New York, NY
May 27, 2026
23rd Annual Craig-Hallum Institutional Investor Conference
Location: Depot Renaissance Hotel Minneapolis, MN
May 28, 2026
Stifel 2026 Cross Sector Insight Conference
Location: InterContinental Boston, MA
June 2, 2026
2026 Evercore Global TMT Conference
Location: the Omni San Francisco Hotel in San Francisco, CA
June 3, 2026
Portfolio managers and analysts should contact their respective banking representative to schedule a meeting at these conferences.
Presentation materials will be made concurrently available on the Investor Relations section of the Company’s website, www.cohu.com.
About Cohu:
Cohu (NASDAQ: COHU) was founded in 1947 and is a global technology leader supplying test, automation, inspection & metrology products, software analytics solutions and services to the semiconductor industry. Additional information can be found at www.cohu.com.
For press releases and other information of interest to investors, please visit Cohu’s website at www.cohu.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260518688544/en/
On May 19, 2026, Cohu Inc COHU shares fell 3.2% to a current price of $42.77. The stock has experienced a volatile year, with a 52-week high of $52.43 and a low of $16.46.
GF Value™ verdict: Current price of $42.77 vs GF Value™ of $25.57 indicates the stock is 67.3% overvalued.GF Score™ of 66/100 suggests an above-average rating, indicating potential for long-term returns.Notable signal: Insiders have sold $0.9M worth of shares in the last 3 months, with no buying activity reported. Is COHU Overvalued or Undervalued? The current market price of Cohu Inc COHU significantly exceeds its GF Value™, which is estimated at $25.57. This suggests that the shares are overvalued by 67.3%, indicating a substantial margin of safety for potential investors. The GF Valuation label categorizes COHU as "Significantly Overvalued," which presents a risk for those considering entry points into the stock. While the company's recent performance may seem appealing, the underlying valuation metrics suggest that a correction could be on the horizon.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given the current valuation, it may be prudent for investors to approach COHU with caution, as the high market price may not be justified by the company's financial fundamentals.
How Does COHU's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 73.9x 17.5x COHU's current P/E ratio of 73.9x is substantially above its 5-year median P/E of 17.5x, indicating that the stock is trading at a premium compared to its historical valuation. This analysis aligns with the GF Value™ verdict of being significantly overvalued, reinforcing the notion that the current price does not reflect the company's historical earning potential.
What Does COHU's GF Score™ Tell Us? Metric Rating GF Score™ 66/100 Financial Strength 6/10 Profitability 4/10 Growth 4/10 Valuation 3/10 Momentum 9/10 The GF Score™ of 66/100 indicates that Cohu Inc COHU is positioned above average relative to its peers, suggesting potential for higher long-term returns. The strongest area is the momentum rank of 9/10, reflecting positive price trends. However, the valuation score of 3/10 raises concerns about its current pricing relative to intrinsic value, emphasizing the need for caution among potential investors.
What Are Insiders Doing with COHU Stock? Recent insider activity shows that insiders have sold $0.9 million worth of shares in the last three months without any recorded buying. This selling pattern may suggest a lack of confidence in the stock's current valuation or future performance, which could be a red flag for potential investors.
The absence of insider buying during this period may indicate that those closest to the company do not see attractive investment opportunities at the current price level.
What This Means for Investors Based on the GF Value™ assessment, Cohu Inc COHU is currently overvalued. With a significant discrepancy between the market price and the estimated intrinsic value, investors may need to exercise caution before entering or increasing their positions in COHU.
For the complete analysis, visit the Cohu Inc COHU stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is COHU's GF Score™?
COHU has a GF Score™ of 66/100, indicating an above-average rating that suggests potential for higher long-term returns based on its performance metrics.
Is COHU overvalued or undervalued?
COHU is currently overvalued, with a GF Value™ of $25.57 compared to its market price of $42.77, suggesting a significant risk for potential investors.
What is COHU's P/E ratio?
COHU's current P/E ratio is 73.9x, which is considerably higher than its 5-year median P/E of 17.5x, indicating that the stock is trading at a premium relative to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
The semiconductor industry is at the heart of the artificial intelligence (AI) revolution. Without advanced chips and networking components for data centers, developers wouldn't have enough computing capacity to build and deploy AI models. Nvidia, Advanced Micro Devices, and Micron Technology are just a few key suppliers of that hardware.
However, many lesser-known companies operate behind the scenes to supply machines and equipment that make the manufacturing process more efficient. Cohu (COHU +7.53%) is one of them -- its testing and handling systems play a central role in the quality control process, ensuring chips are free of defects before they ship to customers.
Cohu stock has exploded higher by 160% over the last 12 months on soaring demand for its equipment. But all of the analysts tracked by The Wall Street Journal think it's still a buy, and their consensus price target suggests more upside is ahead. Is this the ultimate under-the-radar AI opportunity for investors?
Image source: Getty Images.
Cohu's systems are critical to the manufacturing process Cohu sells equipment to chipmakers for the automotive, computing, mobile, industrial, consumer, and AI markets. The AI opportunity might be the largest in the company's history, and I'll go over some numbers in a moment.
Cohu's Eclipse platform handles the data center chips used in AI workloads, including graphics processing units (GPUs), central processors (CPUs), and high-bandwidth memory (HBM). Eclipse autonomously picks up finished semiconductors post-production and places them in test sockets, where it tests them by simulating real-world operating conditions. Automation is key to this testing process because a manual, human-driven alternative would significantly slow down production.
Then there is the Neon inspection and metrology platform, which closely analyzes the physical condition of memory chips. It uses infrared vision and AI software to identify microscopic cracks, imperfections, and other defects in semiconductor wafers, to ensure they are up to standard before shipping to customers. Neon can spot defects as small as 1 micron -- for some perspective, a human hair is around 70 microns thick.
Cohu is investing heavily in the Neon platform because of how quickly the memory market is moving. Manufacturers like Micron Technology are now shipping HBM4 to AI customers, with HBM5 in the pipeline, and every new generation is more complex than the last. During the first quarter of 2026 (ended March 31), orders soared by 64% year over year in Cohu's inspection and metrology business.
Cohu has a massive order pipeline Wall Street's consensus forecast (provided by Yahoo! Finance) suggests Cohu will deliver $558.5 million in total revenue in 2026, which would be a 23% increase from the prior year. That would mark an acceleration from the 13% growth it delivered in 2025, so the business has significant momentum right now.
But that picture could get even better, because Cohu has a $750 million sales pipeline from what it calls the high-performance computing segment, which includes AI accelerators, GPUs, and HBM-related customers. None of that $750 million has shown up in the company's financial statements yet, because the customers are still in the engagement and qualification phases of the sales process.
That means Cohu's revenue is likely to see a significant boost in the near future.
Should investors buy Cohu stock? The Wall Street Journal tracks seven analysts covering Cohu stock, and all seven have given it a buy rating. They have an average price target of $57.43, implying a potential upside of 24% over the next 12 months or so. The Street-high target of $65 implies an even greater potential gain of 40%.
Today's Change
(
7.53
%) $
4.10
Current Price
$
58.57
Those returns don't exactly sound explosive for a booming AI semiconductor company, but it's important to remember that Cohu stock is already up 160% over the last 12 months. Therefore, investors who buy the stock today might want to look beyond the next year to maximize their potential returns, and I'll explain why.
Cohu's business isn't consistently profitable, but that appears likely to change thanks to the incredible sales pipeline I highlighted earlier. As a result, Wall Street thinks the company could generate adjusted (non-GAAP) earnings of $0.58 in 2026, placing its stock at a forward price-to-earnings (P/E) ratio of 79.7. For some perspective, that makes the stock three times as expensive as Nvidia, which trades at a forward P/E ratio of 24.1.
However, the Street thinks Cohu could more than double its adjusted earnings to $1.46 per share in 2027, placing its stock at a forward P/E of 31.6. While that still isn't necessarily cheap, the trajectory of the company's earnings could attract a lot of investor interest going forward, particularly if 2028 and 2029 forecasts come in equally strong.
In summary, Wall Street's price targets for Cohu stock are probably achievable, but investors who take a longer-term view of three to five years could reap even greater rewards.
On June 08, 2026, Cohu Inc COHU shares experienced a notable increase of 5.5%, bringing the current price to $52.49. Despite this recent uptick, the stock has shown volatility, with a 52-week trading range of $17.71 to $58.47.
GF Value™ verdict: The current price is $52.49, significantly above the GF Value™ of $25.91, indicating the stock is 102.6% overvalued.GF Score™ is 58/100, suggesting an average performance across key metrics.Notable signal: Insiders have sold $4.2M worth of shares in the last 3 months, indicating a lack of buying interest from those closest to the company. Is COHU Overvalued or Undervalued? The current market price of Cohu Inc COHU stands at $52.49, substantially exceeding the GF Value™ estimate of $25.91. This suggests that the stock is significantly overvalued, with a margin of safety that is notably absent for potential investors. GF Valuation indicates that the stock is "Significantly Overvalued," which raises concerns about its sustainability at this price point. Such overvaluation implies a higher risk for investors, as the stock price may correct itself towards the intrinsic value over time.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. In the current scenario, potential investors should exercise caution, considering the elevated valuation against the backdrop of the company's fundamentals and market conditions.
How Does COHU's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 90.1x 17.2x Currently, COHU's P/E ratio of 90.1x is significantly above its 5-year median P/E of 17.2x, indicating that the stock is trading at a much higher valuation compared to its historical averages. This analysis aligns with the GF Value™ verdict, reinforcing the notion that COHU is currently overvalued based on its historical valuation metrics.
What Does COHU's GF Score™ Tell Us? Metric Rating GF Score™ 58 Financial Strength 6/10 Profitability 4/10 Growth 4/10 Valuation 1/10 Momentum 6/10 The GF Score™ of 58/100 reflects average performance across the evaluated metrics. Financial strength is relatively strong at 6/10, suggesting a stable balance sheet, while profitability and growth are weaker at 4/10. Notably, the valuation rank is concerning at 1/10, highlighting the stock's overvaluation risk. Momentum shows a score of 6/10, indicating some positive price action recently, but overall, the mixed scores suggest a cautious outlook for COHU.
What Are Insiders Doing with COHU Stock? In the last three months, insiders have sold a total of $4.2 million worth of COHU shares, with no reported buying activity. This pattern suggests a lack of confidence among those with intimate knowledge of the company's operations and future prospects. The absence of insider buying may further indicate that insiders do not perceive the current stock price as an attractive entry point.
What This Means for Investors Based on the GF Value™ assessment, Cohu Inc COHU is currently overvalued. With a significant disparity between the current stock price and the estimated intrinsic value, potential investors should approach with caution and consider the associated risks.
For the complete analysis, visit the Cohu Inc COHU stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is COHU's GF Score™?
COHU's GF Score™ is 58/100, indicating average performance across the key metrics evaluated.
Is COHU overvalued or undervalued?
COHU is overvalued, with a current price of $52.49 significantly exceeding the GF Value™ estimate of $25.91.
What is COHU's P/E ratio?
COHU's P/E ratio is currently 90.1x, which is markedly above its 5-year median P/E of 17.2x, indicating a high valuation relative to its historical performance.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
The crowd on Polymarket is pricing a 100% probability that SpaceX completes its IPO by June 30, with the offering targeted at $135 per share for a $75 billion raise. If that debut lands as a hit, Tesla (NASDAQ:TSLA) CEO Elon Musk gains a fresh public-equity lever to fund Terafab, the chip-manufacturing megafacility outlined in the SpaceX S-1 filing.
According to the filing, Terafab is a Tesla (March) and Intel (NASDAQ:INTC) (April) collaboration aiming to be the world’s largest chip manufacturing facility, with a long-term goal of one terawatt of annual compute production. Its strategy vertically integrates lithography masks, logic and memory fabrication, and advanced packaging. The catch: per the S-1, specific projects development timelines, milestones and capital expenditures “have not yet been determined.”
A successful SpaceX IPO would unlock a new megafab customer for semiconductor equipment makers, who get paid to outfit fabs regardless of chip prices. Below are five U.S.-listed equipment names ranked by exposure to Terafab’s priorities.
1. ASML (ASML) ASML (NASDAQ:ASML | ASML Price Prediction) sits at the top because Terafab can’t fabricate cutting-edge logic without extreme ultraviolet (EUV) lithography, and ASML is the sole supplier. CEO Christophe Fouquet noted that “the semiconductor industry’s growth outlook continues to solidify, driven by ongoing AI-related infrastructure investments. Demand for chips is outpacing supply.”
ASML’s FY2025 revenue hit $37.94 billion, EUV systems grew 39% to $13.47 billion, and year-end backlog reached a record $45.06 billion. ASML stock has climbed 62% year to date.
The bear case: China export controls and tariffs could clip near-term system sales. The valuation also requires AI capex to stay on its current trajectory into 2027 and beyond.
2. Lam Research (LRCX) Lam Research (NASDAQ:LRCX) supplies etch and deposition tools essential for memory chips, including the high-bandwidth memory (HBM) stacks that AI accelerators consume in bulk. Terafab’s focus on memory fabrication and advanced packaging puts Lam Research directly in line for incremental tool orders.
Lam Research’s Q3 FY2026 revenue hit a record $5.84 billion with non-GAAP EPS of $1.47, and June-quarter guidance points to around $6.6 billion. CEO Tim Archer credited “AI-driven demand reshaping the semiconductor industry.”
LRCX stock is up 89% year to date. If Terafab eventually adds significant memory supply, DRAM and NAND prices could weaken, yet Lam Research still collects equipment revenue.
3. Camtek (CAMT) Camtek (NASDAQ:CAMT) is an Israel-based inspection and metrology specialist concentrated in advanced packaging, the third pillar of Terafab’s vertical-integration strategy. CEO Rafi Amit described “an unprecedented start to the year in terms of incoming orders” and called the company “positioned at the epicenter of the AI market.”
Camtek’s Q1 FY2026 revenue came in at $121.66 million with non-GAAP EPS of $0.70, and management guided second-half 2026 to grow over 25% versus the first half. Camtek stock trades at a forward P/E ratio of 47x with a consensus analyst price target of $187.25.
Risks include Middle East geopolitics and Strait of Hormuz supply-chain exposure. CAMT shares are off 18.5% over the past month, a reminder that small-cap equipment names trade with sharp swings.
4. Onto Innovation (ONTO) Onto Innovation (NYSE:ONTO) provides process control, metrology and inspection tools for advanced packaging, HBM and gate-all-around logic, mirroring Terafab’s roadmap. Onto recently signed a $240 million-plus volume purchase agreement with a leading HBM manufacturer through 2027.
Onto Innovation’s Q1 FY2026 revenue reached $291.95 million, and management guided Q2 to $320 million to $330 million. CEO Mike Plisinski pointed to “global AI investment fueling a robust upcycle in semiconductor capital equipment spending.”
ONTO stock carries a trailing P/E ratio of 118x and an analyst target of $351.88. The valuation already prices in robust AI capex, so any delay in Terafab or HBM cooling could compress the multiple.
5. Cohu (COHU) Cohu (NASDAQ:COHU) rounds out the list as the early-cycle test and handling play. About 60% of Cohu’s revenue is recurring, and Cohu’s test-cell utilization rose to 78% at the end of March.
The company’s Q1 FY2026 revenue grew 29% to $125.12 million, though non-GAAP EPS of $0.01 missed the $0.03 estimate. Cohu’s management raised its FY2026 high-performance computing revenue outlook to $80 million to $100 million, against an AI-driven compute addressable market sized at around $750 million.
COHU stock has surged 132% year to date, reflecting cyclical recovery hopes. The bear case: Cohu’s ongoing GAAP losses, customer concentration, and tariff exposure leave little margin for execution slips.
What to Watch Now If SpaceX’s IPO succeeds and Musk uses public equity to advance Terafab, every front-end and back-end equipment vendor with logic, memory and packaging exposure stands to win incremental orders. The five names listed above sit closest to the action across lithography, etch and deposition, packaging inspection, metrology and test.
However, the thesis hinges on two unknowns: whether Terafab is built at the scale described in the S-1, and whether AI capex from buyers like Taiwan Semiconductor Manufacturing (NYSE:TSM), Samsung, and Micron Technology (NASDAQ:MU) stays elevated through 2027 and beyond. Export controls, tariffs, and the China overhang for ASML and Lam Research add uncertainty.
For investors in memory makers, equipment names can offer exposure to the AI buildout while hedging memory-price risk. Watch the SpaceX debut and any disclosure on Terafab capital expenditures and equipment partners.
Prada S.p.A. (OTCMKTS:PRDSF – Get Free Report) shares crossed below its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $5.53 and traded as low as $4.8120. Prada shares last traded at $4.8120, with a volume of 24,304 shares.
Prada Stock Performance The business’s 50 day moving average is $5.08 and its two-hundred day moving average is $5.53.
About Prada (Get Free Report)
Prada S.p.A. is an Italian luxury fashion house known for its high‐end leather goods, ready‐to‐wear clothing, footwear, eyewear, fragrances and accessories. Founded in 1913 by Mario Prada in Milan, the company has grown into one of the world’s most recognizable luxury brands, combining artisanal craftsmanship with contemporary design. Prada’s collections are positioned at the premium end of the market, appealing to a global customer base seeking both timeless elegance and avant‐garde style.
Under the creative direction of Miuccia Prada—who joined the family business in the late 1970s—and the strategic leadership of Patrizio Bertelli, Prada has expanded its product lines and retail footprint.
See Also Five stocks we like better than Prada Receive News & Ratings for Prada Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Prada and related companies with MarketBeat.com's FREE daily email newsletter.
Item 1 of 3 Meryl Streep, Anne Hathaway, Stanley Tucci and Emily Blunt attend the "The Devil Wears Prada 2" European premiere in London, Britain, April 22, 2026. REUTERS/Jack Taylor TPX IMAGES OF THE DAY
[1/3]Meryl Streep, Anne Hathaway, Stanley Tucci and Emily Blunt attend the "The Devil Wears Prada 2" European premiere in London, Britain, April 22, 2026. REUTERS/Jack Taylor TPX IMAGES OF THE DAY Purchase Licensing Rights, opens new tab
LONDON, April 22 (Reuters) - The Devil Wears Prada 2" brings back the flash and fashion of the original film but also offers insight into a transformed media landscape, its stars and makers said at the movie's European premiere in London on Wednesday.
The sequel comes two decades after "The Devil Wears Prada", with filmmaker David Frankel returning to direct from a screenplay by Aline Brosh McKenna.
The Reuters Inside Track newsletter is your essential guide during the World Cup. Sign up here.
It sees Andy Sachs, played by Anne Hathaway, getting laid off from her investigative journalism job and reuniting with her boss from 20 years ago, the feared fashion magazine editor Miranda Priestly, portrayed by Meryl Streep.
Priestly's "Runway" is also grappling with challenges presented by the digital age and the decline of print media.
"It sort of underwrites all the flash and fun and music and the uncertainty of this current moment," said Streep on the red carpet. "The media landscape, but in every form of business, life, music, art, movies, pick a thing, we're all being undermined. That's where the movie kind of starts and it goes from there to see what these characters do with that new landscape."
Unlike the first film, which was based on Lauren Weisberger's novel of the same name, the sequel features an original storyline.
"Everybody's facing challenges, economic challenges. And so it felt like thematically it'd be something that would interest people," said McKenna. The writing came with huge pressure, McKenna said, but she sought to have fun while finding the characters "the way you would an old friend".
Reuniting with much of the original team was "magic", said Hathaway, who had few conditions for reprising her role.
"I just said that I thought Andy hadn't started the family portion of her life, if that ever happened for her. That was my one condition," she said, adding she was open to everything else - unlike Streep, who joked her many stipulations included "no heels over four inches".
Stanley Tucci also returns as Priestly's devoted right-hand man Nigel, while her overworked assistant Emily (Emily Blunt) has moved up to a powerful position in the fashion industry.
Lucy Liu, Kenneth Branagh and Simone Ashley are among new cast members. Celebrity cameos in the sequel, which was shot in New York and Milan, include pop star Lady Gaga and fashion designer Donatella Versace.
"The Devil Wears Prada 2" begins its global theatrical rollout on April 29.
Reporting by Hanna Rantala; Editing by David Gregorio
Our Standards: The Thomson Reuters Trust Principles., opens new tab
HomeIndustriesThe original 2006 movie chronicled the world of fashion magazines at their peak, but since then ad pages and Vogue’s legendary September issue have been cut in halfPublished: April 28, 2026 at 1:45 p.m. ET
Meryl Streep is reprising her role as Miranda Priestly in “The Devil Wears Prada 2,” which is set for wide release in theaters on Friday. Photo: Walt Disney Studios Motion Pictures/Courtesy Everett CollectionWhen “The Devil Wears Prada” first opened in theaters in 2006, magazines like Vogue were fat with ads, famed for their lavish staff expense reports and considered bibles of the fashion world.
The long-awaited sequel is due out from Walt Disney Studios DIS on Friday, but over the past 20 years, the world of fashion magazines has become a far different place.
The fashion house's sales rose 10% on year at constant currency. Excluding the contribution from Versace, retail sales were up 1% compared with the same period a year earlier.
'Devil Wears Prada 2' Producer Wendy Finerman joins 'Fast Money' to talk the kick off to the summer movie season, the state of the entertainment business, and much more.
Disney has proven that you don't need superheroes, explosive action-packed sequences or blue-skinned aliens for a sequel to perform well at the box office.
Over the weekend, the studio released "The Devil Wears Prada 2" under its 20th Century Studios banner to raucous results. The sequel film to 2006's "The Devil Wears Prada" tallied around $77 million domestically during its opening weekend, the third-highest debut of the year. That's nearly triple the $27.5 million that the first film generated during its opening weekend two decades ago, according to data from Comscore.
Internationally, "The Devil Wears Prada 2" secured more than $150 million, bringing its total haul to around $233 million globally for its first three days in theaters. That total is 72% of what the original "The Devil Wears Prada" generated during its entire theatrical run.
"Some things never go out of fashion," Paul Dergarabedian, head of marketplace trends at Comscore told CNBC. "It's difficult to predict whether audiences will embrace or reject a sequel to a beloved original, but the creative teams, the marketing folks and the distribution team of Disney's 20th Century Studios put together an irresistible hit movie that had not just appeal in the United States but also around the world."
watch now
Disney's return to the well for a "The Devil Wears Prada" sequel comes at a time where Hollywood has become more reliant on tried-and-true intellectual property. In fact, the 2026 calendar is filled with titles connected to major franchises like Star Wars, Marvel, DC Comics, Toy Story, Super Mario Bros., Hunger Games, Scream, Scary Movie, Minions, Dune and Jumanji.
There's even a sequel to 1998's "Practical Magic" coming in the fall.
While "The Devil Wears Prada 2" isn't the typical blockbuster movie sequel that usually kicks off the summer movie season, it showcases the fervor of audiences for nostalgic IP.
"Usually the movies that kick off this kind of weekend are what I like to refer to as 'cape' movies," Wendy Finerman, an Academy Award-winner and producer of "The Devil Wears Prada 2," said on CNBC's "Fast Money" Monday.
The characters in this film wear a different kind of cape, she noted, adding it's a story "where you take off the cape and you're more powerful."
The film drove significant attendance from female moviegoers, who represented 76% of tickets sold. It also brought out an older cohort of moviegoers. While the majority of tickets, about 28%, were sold to those age 25 to 34 years old, the second-highest demographic was moviegoers over 55, which accounted for 22% of tickets sold.
"There was a group of people from Boston, friends of mine, 30 women went together," Finerman said. "... Families are going, sisters are going. And the other thing is, and it's not just here, all over the world, people are dressing up. It's become an event. They're wearing red shoes, they're wearing makeup, they're looking like different characters, they're saying certain lines."
"So it's become an event versus just going to the movies," she said.
Correction: This story has been revised to reflect that Disney released "The Devil Wears Prada 2" under its 20th Century Studios banner. A previous version misstated the name of the studio.
In the latest close session, Signet (SIG - Free Report) was up +2.99% at $84.05. The stock exceeded the S&P 500, which registered a gain of 0.61% for the day. Elsewhere, the Dow saw a downswing of 0.23%, while the tech-heavy Nasdaq appreciated by 1.19%.
Heading into today, shares of the jewelry company had lost 7.02% over the past month, lagging the Retail-Wholesale sector's loss of 2.5% and the S&P 500's gain of 4.44%.
Market participants will be closely following the financial results of Signet in its upcoming release. The company plans to announce its earnings on June 2, 2026. The company's upcoming EPS is projected at $1.32, signifying a 11.86% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.56 billion, reflecting a 1.06% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.3 per share and a revenue of $6.85 billion, indicating changes of +7.29% and +0.46%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Signet. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Signet possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, Signet is currently exchanging hands at a Forward P/E ratio of 7.93. This signifies a discount in comparison to the average Forward P/E of 21.48 for its industry.
It's also important to note that SIG currently trades at a PEG ratio of 0.94. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Retail - Jewelry stocks are, on average, holding a PEG ratio of 2.25 based on yesterday's closing prices.
The Retail - Jewelry industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 51, putting it in the top 21% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Signet Jewelers remains a 'buy' despite recent underperformance, supported by stable financials, a strong balance sheet, and compelling valuation. SIG's strategic focus includes portfolio consolidation, digital investments, and expanding higher-margin service revenue to drive long-term value. Management expects Q1 2027 revenue of $1.53–$1.57B and EBITDA of $112–$123M, driven by stronger Valentine's Day demand and higher gold prices.
HAMILTON, Bermuda--(BUSINESS WIRE)--Signet Jewelers Limited ("Signet" or the "Company") (NYSE:SIG) today announced its results for the 13 weeks ended May 2, 2026 ("first quarter Fiscal 2027"). "We drove topline growth in the first quarter with all categories up on a comparable sales basis. We also delivered positive performances for both Valentine's Day in February as well as Mother's Day to start the second quarter," said J.K. Symancyk, Chief Executive Officer. "These early proof points of our.
Signet Jewelers Limited (NYSE:SIG) shares rose nearly 5% after the company reported first quarter financial results that beat earnings expectations and showed steady comparable sales growth, alongside an improved full-year outlook.
The company reported adjusted diluted earnings per share of $1.56, above analyst estimates of $1.32 to $1.38 and up roughly 32% year-over-year.
Revenue came in at approximately $1.55 billion, broadly in line with consensus expectations of $1.56 billion.
Comparable store sales increased 1.8% compared with the prior-year period, driven by an approximately 5% rise in merchandise average unit retail, with gains across both bridal and fashion categories.
The company also updated its fiscal 2027 outlook, narrowing its sales range to $6.7 billion to $6.9 billion, compared with a prior range of $6.6 billion to $6.9 billion. It maintained its same-store sales forecast of a decline of 0.75% to growth of 2.5%.
Adjusted EPS guidance was raised to $9.20 to $11.00 from $8.80 to $10.74, while adjusted EBITDA is now expected between $665 million and $745 million.
Signet said it continues to expect improved profitability and steady execution through the remainder of the fiscal year, supported by cost discipline and demand trends in key gifting and bridal categories.
"We drove topline growth in the first quarter with all categories up on a comparable sales basis,” Signet CEO J.K. Symancyk said in a statement.
“We also delivered positive performances for both Valentine’s Day in February as well as Mother’s Day to start the second quarter. These early proof points of our Grow Brand Love strategy show we can perform and transform at the same time.”
Jefferies wrote that Signet’s Q1 results strengthened its positive view on the stock, pointing to broad-based same-store sales growth and improving mix, with average unit retail rising about 5% across bridal and fashion categories.
The firm highlighted profitability as the key driver in the quarter, noting that adjusted EBITDA outperformance reflected SG&A leverage following last year’s restructuring efforts.
It also pointed to the company’s decision to raise full-year EPS guidance, attributing the update to solid execution in the quarter and stronger-than-expected demand around Mother’s Day.
Jefferies added that free cash flow generation continues to underpin the investment case, with capital returns supported by ongoing buybacks and a newly announced accelerated share repurchase program.
The firm said these factors reinforce its bullish outlook, maintaining that upside potential remains significant if current trends persist.
Signet (SIG - Free Report) came out with quarterly earnings of $1.56 per share, beating the Zacks Consensus Estimate of $1.32 per share. This compares to earnings of $1.18 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +18.18%. A quarter ago, it was expected that this jewelry company would post earnings of $5.96 per share when it actually produced earnings of $6.25, delivering a surprise of +4.87%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Signet, which belongs to the Zacks Retail - Jewelry industry, posted revenues of $1.55 billion for the quarter ended April 2026, missing the Zacks Consensus Estimate by 0.28%. This compares to year-ago revenues of $1.54 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Signet shares have added about 2.3% since the beginning of the year versus the S&P 500's gain of 11%.
What's Next for Signet?While Signet has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Signet was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.70 on $1.54 billion in revenues for the coming quarter and $10.30 on $6.85 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Jewelry is currently in the top 10% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the broader Zacks Retail-Wholesale sector, Macy's (M - Free Report) , has yet to report results for the quarter ended April 2026. The results are expected to be released on June 3.
This department store operator is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of -87.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Macy's' revenues are expected to be $4.62 billion, up 0.5% from the year-ago quarter.
Signet Jewelers Limited delivered solid Q1 results, with EPS up 32% and same-store sales rising 1.8%, supported by effective pricing and resilient consumer demand. SIG maintains a pristine balance sheet—$600M cash, no debt—and continues aggressive buybacks, with an additional $50M accelerated repurchase announced for June. Guidance was raised, with the EPS outlook lifted to $10.10; shares remain attractively valued at ~9x earnings, despite strong capital returns and stable sales.
3 Quiet Outperformers Boosting Dividends as Markets RetreatSignet Jewelers NYSE: SIG said it delivered a stronger-than-expected start to fiscal 2027, with comparable sales growth across every category and adjusted earnings growth that prompted the jeweler to raise the midpoint of its full-year guidance.
Chief Executive Officer J.K. Symancyk told investors on the company’s first-quarter earnings call that Signet posted “another quarter of comp sales growth” while also advancing its multiyear “Grow Brand Love” strategy. He said the company recorded positive comparable sales in each month of the quarter, though trends softened somewhat in the second half before rebounding around Mother’s Day and into the second quarter.
Get Signet Jewelers alerts:
Signet Jewelers Stock Poised for Rebound After Earnings Drop“We’ve now delivered positive comp sales in 15 of the last 17 months, and have seen recently our strongest two-year stacks since pandemic stimulus spending,” Symancyk said.
First-quarter sales rise as AUR increases Chief Operating and Financial Officer Joan Hilson said first-quarter revenue was $1.6 billion, with comparable sales up 1.8%. James Allen represented a one-point drag on comparable sales in the quarter, she said.
The Retail Sector is on the cusp of a major breakoutBy category, bridal and fashion grew in the low single digits, while watches and services posted stronger growth. Average unit retail, or AUR, rose nearly 5% and increased across all categories, including high-single-digit growth in bridal.
Symancyk said Signet saw strength at higher price points, with collections including Shy supporting fashion growth and Neil Lane and Monique Lhuillier helping drive bridal. He also said unit trends improved sequentially by three points compared with the fourth quarter, though lower price points remain more challenged due in part to gold costs.
“If you look at price points above $2,000 in our business, they’re call it mid-ish single digits in terms of unit penetration, but 40-ish% as it relates to revenue,” Symancyk said during the Q&A portion of the call.
Margins pressured by gold, offset by cost discipline Adjusted gross margin was $589 million, with the rate down approximately one percentage point. Hilson said the decline reflected 70 basis points of merchandise margin pressure, primarily from higher gold costs, partially offset by 20 basis points of occupancy leverage.
SG&A expenses fell 3% from a year earlier, reflecting restructuring under the Grow Brand Love operating model and ongoing spending discipline. Adjusted operating income rose 12%, and adjusted diluted earnings per share increased more than 30% to $1.56, helped by earnings growth, higher interest income and a lower diluted share count.
Hilson said Signet repurchased approximately 1.3 million shares for $114 million as of the morning of the call. Once an accelerated share repurchase is completed, the company expects to have about $355 million remaining under its share repurchase authorization.
Inventory ended the quarter at $2 billion, roughly flat year over year, while cash increased nearly $340 million to more than $600 million. Free cash flow improved by $43 million from last year, despite the payout of annual incentive compensation that did not occur in the prior year.
Blue Nile repositioning and James Allen transition continue Hilson said Signet is repositioning Blue Nile as a premium brand focused on a more affluent customer and anchored in natural diamonds. She said the company believes about 70% of engagement market revenue remains in natural diamonds, and that natural diamonds account for more than 90% of engagement revenue above $5,000.
To accelerate that strategy, Signet recently acquired The Clear Cut, a digitally native natural diamond jewelry brand. Hilson described the transaction as a small tuck-in acquisition that brings diamond expertise, a proprietary curation process, concierge service and a significant social media following to Blue Nile.
The company also completed the commercial transition of James Allen, sunsetting its website in mid-May and redirecting traffic to Blue Nile. Hilson said the company is now using James Allen as a proprietary collection while discontinuing remaining assortment not relevant to other brands. Signet recorded a $32 million non-cash inventory write-down related to the exit of that inventory, and total restructuring and related charges were $42 million, most of which were non-cash.
Hilson said the company does not expect material charges related to the James Allen transition going forward.
Company raises full-year outlook Signet raised the midpoint of its full-year outlook, citing first-quarter performance and second-quarter momentum. For fiscal 2027, the company now expects:
Same-store sales ranging from down 0.75% to up 2.5%. Total revenue between $6.7 billion and $6.9 billion. Adjusted operating income between $480 million and $560 million. Adjusted earnings per share between $9.20 and $11.00. Capital expenditures of $150 million to $180 million. The company expects AUR growth across categories with modest unit declines, especially at lower price points, largely due to higher gold costs. Hilson said that beginning in the second quarter, Blue Nile and James Allen will be excluded from same-store sales for the next year to reflect the transition of those brands, which should benefit same-store sales by 50 to 70 basis points going forward.
For the second quarter, Signet expects same-store sales to rise 0.5% to 2.5%, with adjusted operating income between $79 million and $93 million. Hilson said merchandise margin is expected to be lower in the quarter because of higher gold costs, but the company expects SG&A and occupancy leverage to generally offset that pressure at the midpoint of guidance.
Strategy focuses on brand distinction and operating efficiency Symancyk said Signet is in the second year of its Grow Brand Love strategy, which focuses on brand distinction, unlocking portfolio value and strengthening the operating model.
The company is redesigning websites for Kay, Zales and Jared, with the work furthest along at Jared and expected to be completed for all three in the early part of the third quarter. Symancyk said the websites are Signet’s largest storefronts and that improving search, navigation and storytelling is important ahead of the holiday season.
Signet is also shifting marketing toward social-first storytelling and creator partnerships. Symancyk cited Zales’ partnership with Ashley Graham and Kay’s collaboration with Christian McCaffrey, saying the latter delivered more than twice the company’s average social engagement rate.
On tariffs, Symancyk said Signet continues to monitor developments and has submitted refund claims for most purchases where it is the importer of record. He said a small amount has been approved and received, but it is too early to quantify potential refunds or their timing.
“We believe Grow Brand Love is setting the foundation for sustainable long-term growth, with the ability to grow even during turbulent macro periods,” Symancyk said.
About Signet Jewelers NYSE: SIGSignet Jewelers Ltd is the world's largest retailer of diamond jewelry, operating a diversified network of retail stores across the United States, Canada, the United Kingdom and Ireland. Its portfolio includes well-established banners such as Kay Jewelers, Zales, Jared The Galleria of Jewelry, H.Samuel, Ernest Jones, Peoples and Piercing Pagoda, offering customers a range of shopping environments from suburban malls to high-street locations.
The company's product assortment encompasses engagement rings, wedding bands, fine fashion jewelry and timepieces, complemented by services including jewelry cleaning, repairs, appraisals and extended care plans.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Signet Jewelers Right Now?Before you consider Signet Jewelers, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Signet Jewelers wasn't on the list.
While Signet Jewelers currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Robotics and automation are rapidly becoming essential infrastructure across healthcare, manufacturing, logistics, and many other industries.
"Physical AI" is coming to the United States, and there are four ways that investors can gain exposure to this new robotics revolution. Plus, learn which seven companies are most positioned to benefit as intelligent robots enter the workforce.
Key Takeaways Signet Jewelers Q1 adjusted EPS beat estimates, supported by higher operating income.Signet Jewelers saw same-store sales rise 1.8% y/y, led by growth in Bridal and Fashion categories.Signet Jewelers increased its FY27 sales and adjusted EPS guidance after a strong quarter. Signet Jewelers Limited (SIG - Free Report) has posted first-quarter fiscal 2027 results, wherein the bottom line beat the Zacks Consensus Estimate, while the top line marginally missed. Sales increased year over year, supported by positive same-store sales growth and strength across the Bridal and Fashion categories.
The company benefited from healthy consumer demand during the Valentine’s Day and early Mother’s Day selling periods, as well as continued progress under its “Grow Brand Love” strategy. Management accelerated go-to-market initiatives across Kay, Zales and Jared, focusing on stronger brand differentiation, more impactful marketing campaigns, enhanced digital experiences and improved store environments. These efforts are aimed at strengthening customer engagement and supporting sustainable long-term growth.
Cost-reduction initiatives implemented in fiscal 2026 contributed to margin expansion and higher adjusted operating income. Encouraged by strong fiscal first-quarter execution and positive trends entering the second quarter, management raised its fiscal 2027 adjusted EPS outlook and increased the midpoint of its sales and profitability guidance.
More on Signet’s Q1 ResultsSIG reported adjusted earnings of $1.56 per share in the first quarter of fiscal 2027, surpassing the Zacks Consensus Estimate of $1.32. The bottom line increased 32.2% from adjusted earnings of $1.18 in the year-ago period, benefiting from higher adjusted operating income, a lower diluted share count and higher interest income.
This jewelry retailer generated total sales of $1,553.6 million, slightly missing the consensus estimate of $1,558 million. However, the top line increased 0.8% year over year. Same-store sales grew 1.8%, while merchandise average unit retail rose approximately 5% from the prior-year quarter, driven by growth in the Bridal and Fashion categories.
Insight Into SIG’s Margins & ExpensesGross profit in the first quarter of fiscal 2027 totaled $556.5 million, down 7.1% from $598.8 million in the year-ago quarter. The gross margin contracted 310 basis points year over year to 35.8%, primarily reflecting inventory write-downs related to the transition of the James Allen brand. Adjusted gross profit was $589.2 million, falling 1.6% year over year. The adjusted gross margin was 37.9%, which moved down 90 basis points year over year.
Selling, general and administrative (SG&A) expenses were $509.6 million, down 3.1% from $526 million in the prior-year quarter. As a percentage of sales, SG&A expenses improved 130 basis points year over year to 32.8%, benefiting from cost-reduction initiatives implemented in fiscal 2026 and leverage from higher sales.
SIG reported adjusted operating income of $78.6 million, up 11.8% from $70.3 million in the year-ago quarter. The adjusted operating margin expanded 50 basis points year over year to 5.1%.
Adjusted EBITDA amounted to $120.8 million, increasing 6.2% from $113.8 million in the prior-year quarter. The adjusted EBITDA margin improved approximately 40 basis points year over year to 7.8% in the quarter under review.
Update on Signet’s Segmental PerformanceSales in the North America segment increased 0.9% year over year to $1.46 billion in the first quarter of fiscal 2027, which met the Zacks Consensus Estimate. Same-store sales grew 1.6%. The segment’s adjusted operating income increased to $101.4 million from $97.1 million in the prior-year quarter, with the adjusted operating margin expanding to 6.9% from 6.7%.
Sales in the International segment increased 9.2% year over year to $87.5 million, slightly surpassing the consensus estimate of $85 million. Same-store sales rose 5.6%, while sales increased 4.8% on a constant-currency basis. The segment reported an adjusted operating loss of $6.6 million compared with a loss of $7 million in the year-ago quarter.
Update on SIG's StoresAs of May 2, 2026, Signet operated 2,559 stores across its portfolio, representing a net reduction of 23 stores from the end of fiscal 2026. The North America segment operated 2,308 stores after 21 closures during the quarter, while the International segment operated 251 stores following two closures. Total selling space declined 0.4% sequentially to approximately 4 million square feet.
Signet’s Financial Snapshot: Cash, Debt & Equity OverviewSIG ended the first quarter of fiscal 2027 with cash and cash equivalents of $602.8 million compared with $264.1 million in the year-ago period. Inventory totaled approximately $2 billion, remaining essentially flat year over year. Meanwhile, total liquidity reached $1.7 billion, an increase of more than $300 million from the prior-year period. Shareholders’ equity stood at $1.90 billion at the quarter-end.
During the quarter, net cash used in operating activities was $144.7 million, an improvement from the cash use of $175.3 million in the prior-year period. Capital expenditure totaled $24.5 million during the quarter as the company continued investing in strategic growth initiatives and store-optimization efforts.
Signet remained active in returning capital to shareholders. The company repurchased 0.9 million shares for $83 million during the quarter and additional 0.4 million shares for roughly $30 million after the quarter-end. Management also announced plans to initiate a $50-million accelerated share repurchase program, which would leave approximately $355 million available under the existing authorization upon completion.
The company’s board declared a quarterly cash dividend of 35 cents per share, payable Aug. 21, 2026, to shareholders of record as of July 24, 2026. Signet noted that its strong cash generation, inventory discipline and balance-sheet strength continue to support growth investments and shareholder returns.
SIG’s Q2 GuidanceFor the second quarter of fiscal 2027, Signet expects total sales of $1.50-$1.53 billion. Same-store sales are projected to increase 0.5-2.5% year over year. Adjusted operating income is expected between $79 million and $93 million, while adjusted EBITDA is projected to be $125-$139 million.
What to Expect From Signet in FY27?Following its strong fiscal first-quarter performance, SIG raised portions of its fiscal 2027 outlook. The company expects total sales of $6.7-$6.9 billion compared with the prior mentioned $6.6-$6.9 billion. Same-store sales are projected to range from a decline of 0.75% to growth of 2.5%, an improvement from the previously stated 1.25% decline to 2.5% growth. Management expects a $60-$80 million reduction in revenues related to the transition of the James Allen brand, though with minimal impact on adjusted operating income.
The company anticipates adjusted operating income of $480-$560 million, up from the previously mentioned $470-$560 million. Adjusted EBITDA is projected to be $665-$745 million compared with the prior guidance of $655-$745 million. Signet also raised its adjusted EPS outlook to $9.20-$11.00 from the earlier mentioned $8.80-$10.74.
The fiscal 2027 guidance assumes a dynamic tariff, commodity and consumer environment, planned capital expenditure of $150-$180 million, and a low-single-digit reduction in net square footage. Notably, the adjusted EPS guidance excludes any potential share repurchases beyond the planned $50-million accelerated share repurchase program.
SIG Stock Past 3-Month Performance
Image Source: Zacks Investment Research
This Zacks Rank #3 (Hold) company’s shares have lost 12.7% in the past three months compared with the industry’s 3.1% decline.
Stocks to ConsiderWe have highlighted three better-ranked stocks in the retail space, namely, Tapestry, Inc. (TPR - Free Report) , Ross Stores Inc. (ROST - Free Report) and Levi Strauss & Co. (LEVI - Free Report) .
Tapestry is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. The company flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Tapestry’s current fiscal-year earnings and sales indicates growth of 36.3% and 13.8%, respectively, from the year-ago actuals. TPR delivered a trailing four-quarter average earnings surprise of 15.6%.
Ross Stores operates as an off-price retailer of apparel and home accessories, primarily in the United States. The company sports a Zacks Rank #1 at present.
The Zacks Consensus Estimate for Ross Stores’ current fiscal-year earnings and sales indicates growth of 15.6% and 8.2%, respectively, from the year-ago actuals. ROST delivered a trailing four-quarter average earnings surprise of 10.2%.
Levi Strauss designs and markets jeans, casual wear and related accessories for men, women and children. It currently carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for Levi Strauss’ current fiscal-year earnings and sales suggests growth of 11.9% and 5.2%, respectively, from the year-ago actuals. LEVI delivered a trailing four-quarter average earnings surprise of 21.4%.
Signet Jewelers Limited (NYSE:SIG) shares rose nearly 5% after the company reported first quarter financial results that beat earnings expectations and showed steady comparable sales growth, alongside an improved full-year outlook.
The company reported adjusted diluted earnings per share of $1.56, above analyst estimates of $1.32 to $1.38 and up roughly 32% year-over-year.
Revenue came in at approximately $1.55 billion, broadly in line with consensus expectations of $1.56 billion.
Comparable store sales increased 1.8% compared with the prior-year period, driven by an approximately 5% rise in merchandise average unit retail, with gains across both bridal and fashion categories.
The company also updated its fiscal 2027 outlook, narrowing its sales range to $6.7 billion to $6.9 billion, compared with a prior range of $6.6 billion to $6.9 billion. It maintained its same-store sales forecast of a decline of 0.75% to growth of 2.5%.
Adjusted EPS guidance was raised to $9.20 to $11.00 from $8.80 to $10.74, while adjusted EBITDA is now expected between $665 million and $745 million.
Signet said it continues to expect improved profitability and steady execution through the remainder of the fiscal year, supported by cost discipline and demand trends in key gifting and bridal categories.
"We drove topline growth in the first quarter with all categories up on a comparable sales basis,” Signet CEO J.K. Symancyk said in a statement.
“We also delivered positive performances for both Valentine’s Day in February as well as Mother’s Day to start the second quarter. These early proof points of our Grow Brand Love strategy show we can perform and transform at the same time.”
Jefferies wrote that Signet’s Q1 results strengthened its positive view on the stock, pointing to broad-based same-store sales growth and improving mix, with average unit retail rising about 5% across bridal and fashion categories.
The firm highlighted profitability as the key driver in the quarter, noting that adjusted EBITDA outperformance reflected SG&A leverage following last year’s restructuring efforts.
It also pointed to the company’s decision to raise full-year EPS guidance, attributing the update to solid execution in the quarter and stronger-than-expected demand around Mother’s Day.
Jefferies added that free cash flow generation continues to underpin the investment case, with capital returns supported by ongoing buybacks and a newly announced accelerated share repurchase program.
The firm said these factors reinforce its bullish outlook, maintaining that upside potential remains significant if current trends persist.
On Tuesday, Signet Jewelers (SIG +6.79%) stock was looking as shiny and attractive as the wares the company sells. The retail jewelry conglomerate's shares were a hot item that trading session, thanks mainly to an earnings report that beat analyst estimates. Signet's equity closed the day almost 4% higher in price.
Crushing it on the bottom line For Signet's first quarter of fiscal 2027, the company's total sales came in at just over $1.55 billion, a marginal improvement over the same period the previous year. That was on the back of same-store sales that increased by nearly 2%. On a per-share basis, net income not under generally accepted accounting principles (GAAP) saw a steeper rise, gaining 32% to $1.56 per share.
Image source: Getty Images.
The company's revenue was essentially in line with the consensus analyst estimate of $1.56 billion, but it beat convincingly on the $1.38 per share non-GAAP (adjusted) net income forecast.
In its earnings release, Signet attributed its better financials to higher sales across all product categories. It also did particularly well on Valentine's Day, a banner holiday for the jewelry industry, and in the run-up to Mother's Day (which actually fell just outside the quarter's May 2 ending date). The leap in adjusted net income derived mainly from a corporate reorganization completed last year, plus what it termed "leverage from comparable sales growth."
Today's Change
(
6.79
%) $
5.83
Current Price
$
91.75
Guiding for more This is clearly boosting management's confidence, as Signet's leaders raised their full-year profitability guidance. Adjusted net income is now expected to hit $9.20 to $11 per share; previously, that range was $8.80 to $10.74. Similarly, the company's sales guidance was tweaked to $6.7 billion to $6.9 billion, from $6.6 billion to $6.9 billion.
I'm not sure I'd be as confident. Economic insecurity in this country doesn't seem to be abating, not least because inflation remains a threat. I feel Signet, as a luxury retailer, might be particularly vulnerable to a downturn, especially a pronounced one. I'm not bullish on this stock currently.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Signet Jewelers (SIG +6.79%) is the world's largest retailer of diamond jewelry.
The company competes in a mature industry, but the stock offers a chance to get exposure to the jewelry segment from an industry leader trading at a value price.
Over the last five years, Signet has traded sideways as the company dealt with a post-pandemic hangover, high inflation, and a sluggish consumer spending environment. However, after bringing in a new CEO and organizing around its Grow Brand Love transformation strategy, the business is looking as healthy as it has in a long time, with comparable sales up in four out of the last five quarters and a solid guidance hike in its first-quarter report.
Let's take a look at the latest results.
Image source: Getty Images.
Signet shines again During a period with record-low consumer sentiment, Signet managed to deliver solid results with comparable sales up 1.8% in the first quarter, and revenue rose 0.8% to $1.55 billion, which matched expectations. The gap between those numbers is explained by the company's ongoing store rationalization program.
Signet managed to buck the overall headwinds in the consumer discretionary sector as CEO J.K. Symancyk said that because jewelry is an emotional and a considered purchase, it's not necessarily exposed to pressure from high gas prices or inflation like more incidental purchases might be.
Average unit retail was up 5%, and units sold fell 3%, showing the company is finding success at the higher end of the market, while it's experiencing pressure at the lower end due in part to higher gold prices.
Gross margin in the quarter actually fell 70 basis points to 35.8% due in part to inventory write-downs from its transition away from the James Allen banner, which is being folded into Blue Nile. The company also took advantage of elevated gold prices to melt down and trade in some of its gold inventory.
Adjusted operating margin expanded from 4.6% to 5.1% as the company benefited from increased leverage due to the gains in comparable sales and from $18 million in cost savings from the Grow Brand Love strategy.
On the bottom line, adjusted earnings per share jumped from $1.18 to $1.56, easily beating the consensus at $1.38. In addition to higher adjusted operating income, the company benefited from a lower tax rate and ongoing share repurchases as it reduced shares outstanding by more than 5% over the last year.
Signet also raised its full-year guidance. The company is now calling for comparable sales of -0.75% to 2.5%, up from a previous range of -1.25% to 2.5%, and now it expects adjusted earnings per share of $9.20-$11.00, up from a previous range of $8.80-$10.74.
Based on the updated forecast, Signet trades at a forward P/E of just 9.
Today's Change
(
6.79
%) $
5.83
Current Price
$
91.75
Signet also announced an accelerated $50 million share repurchase program, which it intends to begin this month, and the company has $355 million remaining in its share repurchase authorization after that, or about 10% of its market cap.
With comps now positive, investors seem to be underestimating the upside potential of Signet as it can deliver solid EPS growth with the combination of rising comps, an improving margin, and a lower share count.
For value-minded investors, Signet looks like an attractive choice right now. If the company can continue delivering comparable sales growth, earnings per share should move higher as well, fueling gains in the stock.
On June 03, 2026, Signet Jewelers Ltd SIG shares fell 3.0% to $85.35, reflecting a broader market sentiment. The stock has fluctuated within a 52-week range of $71.62 to $110.20. The recent decline comes after a slight uptick of 2.6% over the past week, but the stock remains up 15.2% over the past year.
GF Value™ verdict: Current price of $85.35 is 10.0% below the GF Value™ estimate of $94.81.GF Score™ is 83/100, indicating a strong overall ranking.Notable signal: Financial Strength rating of 7/10 suggests a solid foundation. Is SIG Overvalued or Undervalued? Currently, Signet Jewelers Ltd SIG is trading at $85.35, which is 10.0% below its GF Value™ of $94.81. This undervaluation presents a potential opportunity for investors, indicating that the stock may be worth considering for those looking to invest in a solid retail player. The GF Valuation label categorizes SIG as "Modestly Undervalued," which suggests that there exists a margin of safety for potential investors. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
Despite the current undervaluation, investors should be aware of the risks associated with investing in retail, particularly in a cyclical industry. The recent decline in stock price could signal volatility ahead, and potential investors should consider the broader market context.
How Does SIG's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 12.0x 9.4x Forward P/E 8.2x N/A Currently, SIG's P/E (TTM) of 12.0x is 27% above its 5-year median P/E of 9.4x, suggesting that the stock is trading above its historical valuation. This analysis partially contradicts the GF Value™ verdict, which indicates that while the stock may be undervalued based on intrinsic value, it is trading at a premium relative to its past performance metrics. This discrepancy warrants careful consideration, particularly for those focused on valuation multiples.
What Does SIG's GF Score™ Tell Us? The GF Score™ ranks stocks based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Higher GF Score™ values have been associated with better long-term returns.
Metric Rating GF Score™ 83 Financial Strength 7/10 Profitability 7/10 Growth 6/10 Valuation 10/10 Momentum 8/10 The GF Score™ of 83/100 reflects a strong overall position for SIG, particularly in the Valuation category, where it scored a perfect 10/10. This indicates that the stock is favorably positioned based on valuation metrics. However, the Growth score of 6/10 highlights a potential area of concern, suggesting that while the company is stable, its growth prospects may not be as robust as some competitors. The Financial Strength and Profitability scores of 7/10 indicate a solid foundation, but the company might need to enhance its growth strategies to fully capitalize on its strong valuation.
What Are Insiders Doing with SIG Stock? In the last three months, there have been no insider transactions reported for Signet Jewelers Ltd. The absence of insider activity may suggest a lack of confidence among executives or simply a period of stability where insiders do not feel the need to buy or sell shares. This could indicate that insiders are content with the company's current direction, but it does not provide additional insight into potential future movements in the stock price.
What This Means for Investors Based on the GF Value™ assessment, Signet Jewelers Ltd SIG is currently undervalued, presenting an opportunity for potential investors. However, the stock's current P/E reflects a premium over its historical averages, which may indicate caution. Therefore, while there is an attractive intrinsic value, one should remain mindful of the broader market conditions and the stock's valuation history.
For the complete analysis, visit the Signet Jewelers Ltd SIG stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is SIG's GF Score™?
SIG's GF Score™ is 83/100, indicating a strong overall ranking based on several key performance factors, suggesting the stock has potential for long-term returns.
Is SIG overvalued or undervalued?
According to GF Value™, SIG is currently undervalued by 10.0%, indicating a potential opportunity for investors looking for value in the retail sector.
What is SIG's P/E ratio?
SIG's P/E (TTM) is 12.0x, which is 27% above its 5-year median P/E of 9.4x, suggesting that the stock is trading at a premium compared to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Signet (SIG - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question.
Signet is a member of our Retail-Wholesale group, which includes 189 different companies and currently sits at #14 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Signet is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for SIG's full-year earnings has moved 1.3% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, SIG has moved about 3% on a year-to-date basis. At the same time, Retail-Wholesale stocks have gained an average of 0.7%. As we can see, Signet is performing better than its sector in the calendar year.
Another Retail-Wholesale stock, which has outperformed the sector so far this year, is Dillard's (DDS - Free Report) . The stock has returned 0.8% year-to-date.
In Dillard's' case, the consensus EPS estimate for the current year increased 10.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Signet belongs to the Retail - Jewelry industry, a group that includes 5 individual companies and currently sits at #24 in the Zacks Industry Rank. On average, this group has gained an average of 8.6% so far this year, meaning that SIG is slightly underperforming its industry in terms of year-to-date returns.
In contrast, Dillard's falls under the Retail - Regional Department Stores industry. Currently, this industry has 4 stocks and is ranked #69. Since the beginning of the year, the industry has moved -2.9%.
Investors interested in the Retail-Wholesale sector may want to keep a close eye on Signet and Dillard's as they attempt to continue their solid performance.
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Signet Jewelers (SIG - Free Report) . SIG is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.
Investors will also notice that SIG has a PEG ratio of 1.04. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SIG's industry has an average PEG of 1.15 right now. Over the past 52 weeks, SIG's PEG has been as high as 3.86 and as low as 0.39, with a median of 0.94.
We should also highlight that SIG has a P/B ratio of 2.27. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.39. Over the past year, SIG's P/B has been as high as 2.52 and as low as 1.04, with a median of 1.87.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SIG has a P/S ratio of 0.5. This compares to its industry's average P/S of 0.84.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Signet Jewelers is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SIG feels like a great value stock at the moment.
Key Takeaways SIG posted 1.8% same-store sales growth as every category and most brands turned positive.Signet raised fiscal 2027 outlook: sales $6.7-$6.9B and adjusted EPS $11.00.Signet repositioned Blue Nile with The Clear Cut buy; James Allen moved in, with a $32M inventory write-down. Signet Jewelers Limited’s (SIG - Free Report) first-quarter fiscal 2027 call centered less on the quarter’s headline beat and more on management’s case that its Grow Brand Love strategy is beginning to show up in both sales and earnings. Executives pointed to broad-based comparable-sales growth, better unit trends and a higher full-year outlook.
The setup matters for investors because Signet is trying to prove it can improve brand positioning, margins and capital returns at the same time. The quarter gave management room to sound more confident on each of those fronts.
Signet Leans on Broad-Based Comp GrowthChief executive officer J.K. Symancyk said Signet posted positive comparable sales in each month of the quarter, with growth across every category and most brands. He emphasized a better balance between average unit retail growth and units, with unit comps improving sequentially from the fourth quarter.
That narrative was supported by the reported numbers. Same-store sales rose 1.8%, revenues increased to $1.55 billion from $1.54 billion a year earlier, and adjusted earnings per share climbed to $1.56 from $1.18.
Adjusted EPS exceeded the Zacks Consensus Estimate by 18.18%, while revenues fell slightly short of the $1.56 billion forecast by 0.28%. The results support management’s view that execution improved despite modest top-line growth.
Signet Pushes Brand and Digital ChangesSymancyk framed the current year as the second year of Grow Brand Love, with the biggest priorities tied to sharper brand distinction, portfolio optimization and a stronger operating model. He said website redesigns for Kay, Zales and Jared are in testing and should be completed early in the fiscal third quarter, ahead of the holiday season.
He also described a more data-driven marketing approach, including social-first storytelling and creator partnerships. Management said Kay generated low double-digit growth in impressions on only a 1% increase in social-media spending, reinforcing the message that the company is changing where it spends rather than simply spending more.
The strategic thread here is differentiation. Management tied clearer digital presentation, tighter assortment and more targeted marketing to improved conversion and stronger brand equity rather than to a short-term promotional lift.
Signet Reworks the Portfolio Around DiamondsChief operating and financial officer Joan Hilson used the call to outline a more defined role for Blue Nile inside the portfolio. She said Blue Nile is being repositioned as a premium natural-diamond brand for a broader but more affluent customer base.
That plan now includes the acquisition of The Clear Cut, a digitally native natural-diamond jeweler with concierge capabilities and proprietary gem technology. Hilson said the deal should strengthen Blue Nile’s luxury positioning and improve how Signet curates stones and serves higher-end customers.
At the same time, James Allen has been folded into Blue Nile. Management disclosed a $32 million noncash inventory write-down tied to the transition and said no material future James Allen charges are expected.
Signet Defends Margins Against Gold PressureHilson said adjusted gross margin was $589.2 million, or 37.9% of sales, with the rate down about 1 percentage point. The main pressure came from higher gold costs, which reduced merchandise margin by about 70 basis points.
Management’s answer was to stress cost control and sourcing discipline rather than to signal aggressive pricing. Symancyk said the company is protecting lower price-point goods through assortment changes, plated offerings and design work that uses less gold, while centralized diamond sourcing should help margins and inventory turnover over time.
In Q&A, Jefferies asked about longer-term margin levers, and management’s tone stayed constructive. Executives pointed to pricing and promotion discipline, inventory health and sourcing scale as the main drivers of future expansion rather than any single near-term fix.
Signet Raises the Full-Year MidpointHilson said Signet raised the midpoint of its fiscal 2027 outlook to reflect first-quarter performance and second-quarter momentum. The company now expects total sales of $6.7 billion to $6.9 billion, same-store sales from down 0.75% to up 2.5%, and adjusted EPS of $9.20 to $11.00, up from the prior $8.80 to $10.74 range.
Second-quarter guidance also implied a stable demand backdrop, with expected same-store sales growth of 0.5% to 2.5% and adjusted operating income of $79 million to $93 million.
Management added that the outlook still assumes a dynamic tariff and commodity environment. Hilson said the company expects a mid-teens effective tariff rate and believes sourcing flexibility can limit the impact if country-specific tariffs rise further.
Signet Leaves a More Assertive ToneThe most revealing Q&A exchanges came on higher-end demand, unit trends and comp quality. Analysts from Stephens, Jefferies and Goldman Sachs pressed management on whether strength at higher price points reflected market-share gains, how much room remains for AUR expansion and what Blue Nile’s premiumization means for the wider portfolio.
Symancyk’s answers were consistently confident. He argued that Signet is underpenetrated at higher price points, is seeing positive momentum across brands and still has room to improve lower-end unit trends as assortment resets move through the year.
Zacks Signals for Signet SIG carries a Zacks Rank #2 (Buy), along with a Value Score of A, Growth Score of B, Momentum Score of A and VGM Score of A. Under the Zacks framework, Zacks Rank #1 (Strong Buy) and 2 stocks paired with Style Scores of A or B carry stronger near-term performance potential and a VGM Score of A points to favorable combined value, growth and momentum characteristics. You can see the complete list of today’s Zacks #1 Rank stocks here.
That said, the Zacks Rank is driven primarily by earnings estimate revisions and can change after a quarterly report as analysts update their models. The current mix of a Zacks Rank #2 and top-tier Style Scores keeps SIG in a favorable screening position, but the signal remains revision-dependent.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Signet (SIG - Free Report) Founded in 1950 and headquartered in Hamilton, Bermuda, Signet Jewelers Limited (SIG - Free Report) is the world’s largest retailer of diamond jewelry. The company operates in the United States, Canada, the United Kingdom and the Republic of Ireland. It is often considered to be the leading retailer of diamond jewelry. We note that Signet had 2,582 stores as of Jan. 31, 2026.
SIG is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 8.22; value investors should take notice.
For fiscal 2027, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.27 to $10.57 per share. SIG boasts an average earnings surprise of +87.5%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, SIG should be on investors' short list.
Signet (SIG - Free Report) closed the last trading session at $84.56, gaining 1.7% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $112.22 indicates a 32.7% upside potential.
The average comprises nine short-term price targets ranging from a low of $90.00 to a high of $150.00, with a standard deviation of $19.55. While the lowest estimate indicates an increase of 6.4% from the current price level, the most optimistic estimate points to a 77.4% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
But, for SIG, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why SIG Could Witness a Solid UpsideThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, two estimates have moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 2.6%.
Moreover, SIG currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much SIG could gain, the direction of price movement it implies does appear to be a good guide.
Signet Jewelers (SIG +6.79%) saw its stock rise on an otherwise unexceptional Tuesday for the market. Investors bid up the price of the jewelry retail conglomerate by nearly 3% after it revealed plans for a new, $50 million share repurchase program.
A $50 million move In a regulatory filing published late on Monday, Signet disclosed that it has retained white-shoe investment bank Goldman Sachs to enact a $50 million accelerated share repurchase (ASR) program. Under this initiative, Goldman is to deliver approximately 480,000 of these shares to Signet.
Image source: Getty Images.
The bank might be required to deliver additional shares after the completion of the agreement under certain circumstances, Signet wrote in the document. Under others, the specialty retailer could be obligated to make additional payments to Goldman Sachs.
The company added that the final settlement of the ASR agreement should occur between this Friday, June 12, and July 17.
Once this occurs, Signet will have roughly $355 million remaining in share buyback authorizations under a program initiated in 2017.
Today's Change
(
6.79
%) $
5.83
Current Price
$
91.75
Double benefit The goal of any significant share repurchase initiative is to retire a block of shares. When done well, this has the twin benefits of boosting a company's share price -- due to higher demand for the stock -- and lifting its earnings per share (EPS).
While I'm not particularly a fan of share buybacks, as I feel that precious capital can usually be deployed in more productive ways, this one is well within Signet's means (it had over $600 million in cash at the end of its latest-reported quarter) and the move is obviously resonating with investors. That said, I don't think anyone should transact in Signet purely on its repurchasing activities.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group. The Motley Fool has a disclosure policy.
On May 11, 2026, Semtech Corp SMTC shares rose 12.1% to a price of $136.53. This increase comes amid a strong price performance, as the stock has surged 60.2% over the past month and 289.3% over the past year, with a 52-week range between $34.59 and $127.19.
GF Value™ verdict: Current price of $136.53 is 289.9% overvalued compared to a GF Value™ of $35.02. GF Score™: 76/100, indicating above-average performance. Most notable signal: Insiders sold $3.2M worth of shares in the last 3 months, with no buying activity. Is SMTC Overvalued or Undervalued? According to the GF Value™, Semtech Corp is significantly overvalued, with a current share price of $136.53 compared to a GF Value™ estimate of $35.02. This represents a substantial 289.9% overvaluation, indicating a significant margin of safety for potential investors. The high market price suggests that the stocks may not be a prudent investment at this time, as the risk of a price correction is elevated. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
When evaluating the stock's current valuation against its intrinsic value, the risk of overvaluation is apparent. Investors should be cautious, as the stock's price may not sustain its current levels given the inherent risks associated with such a significant overvaluation.
How Does SMTC's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 61.8x 39.3x (5-Year Median) Semtech Corp's current P/E ratio of 61.8x is significantly above its 5-year median P/E of 39.3x. This indicates that the stock is trading above its historical valuation, which aligns with the GF Value™ assessment of being overvalued. Therefore, the P/E analysis reinforces the notion that Semtech may not be an attractive investment at its current price levels.
What Does SMTC's GF Score™ Tell Us? Metric Rating GF Score™ 76 Financial Strength 7/10 Profitability 7/10 Growth 7/10 Valuation 1/10 Momentum 9/10 The GF Score™ of 76/100 indicates that Semtech Corp is above average in terms of its overall performance. The company shows strong rankings in Financial Strength, Profitability, and Growth, all rated at 7/10. However, the Valuation rank of 1/10 highlights significant concerns regarding the stock's current price relative to its intrinsic value. The high Momentum rank of 9/10 suggests positive short-term price performance, but this could be misleading given the overall valuation situation.
What Are Insiders Doing with SMTC Stock? Recent insider activity in Semtech Corp has shown a pattern of selling, with insiders selling $3.2M worth of shares in the last three months and no buying reported. This trend may suggest a lack of confidence among insiders in the company's current valuation and future performance, which could be a red flag for potential investors.
What This Means for Investors Based on the GF Value™ assessment, Semtech Corp is currently overvalued. The significant disparity between the current market price and the intrinsic value suggests that investors should exercise caution and carefully consider the risks before making investment decisions.
For the complete analysis, visit the Semtech Corp SMTC stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is SMTC's GF Score™?
SMTC's GF Score™ is 76/100, indicating above-average performance in terms of financial health and growth potential.
Is SMTC overvalued or undervalued?
SMTC is considered overvalued based on the GF Value™, which estimates the fair value at $35.02 compared to the current price of $136.53.
What is SMTC's P/E ratio?
SMTC's current P/E ratio is 61.8x, which is significantly higher than its 5-year median P/E of 39.3x, suggesting that the stock is trading at an elevated valuation compared to its historical levels.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
