Jim Cramer’s 10 Handpicked Stocks to Watch

8. Signet Jewelers Limited (NYSE:SIG)

Number of Hedge Fund Investors: 33

Jim Cramer is concerned not about the price of gold and silver but about the poor performance of Signet Jewelers Limited (NYSE:SIG). Despite this, he notes that Signet Jewelers Limited (NYSE:SIG) is priced at just seven times its earnings, indicating it is relatively cheap. Cramer has confidence in Gina Drosos, CEO of Signet Jewelers Limited (NYSE:SIG), who he believes is doing an excellent job. He recommends starting with a small investment in Signet Jewelers Limited (NYSE:SIG) now and potentially increasing it if the price drops further.

“What worries me isn’t the price of gold and silver but the fact that the stock has been acting terribly. But it sells at seven times earnings, and I think Gina Drosos does a terrific job. So, I’m in favor of starting a small position right here and adding more if it comes down. The last quarter was fine—it wasn’t great, it wasn’t bad—but the stock is very inexpensive.”

Signet Jewelers Limited (NYSE:SIG), the largest global retailer of diamond jewelry with brands such as Zales, Kay Jewelers, and Jared, is set for continued growth despite a minor revenue decline in Q2 2024. Signet Jewelers Limited (NYSE:SIG) reported $1.61 billion in revenue, down from $1.75 billion the previous year, but improved its gross margin to 36.7% and achieved an EPS of $1.55, surpassing expectations of $1.45.

This positive outlook is supported by an increased full-year earnings forecast and a strong focus on growing digital sales. Notably, the acquisition of Blue Nile in August 2024 has enhanced Signet Jewelers Limited (NYSE:SIG)’s online presence and broadened its appeal to a tech-savvy customer base. Furthermore, investments in a new CRM system are expected to improve customer personalization, loyalty, and repeat purchases.