Jim Cramer’s Top 10 Must-Watch Stocks for Savvy Investors

8. Signet Jewelers Limited (NYSE:SIG)

Number of Hedge Fund Investors: 33

Cramer points out that Signet Jewelers Limited (NYSE:SIG) has had a strong performance in previous quarters, though the last report was poorly received. He commends CEO Gina Drosos for her efforts to turn Signet Jewelers Limited (NYSE:SIG) around, noting that she has been a guest on his show multiple times. Despite some ongoing challenges, Cramer believes Signet Jewelers Limited (NYSE:SIG)’s stock is currently undervalued. However, he also warns that the stock’s high volatility means it might be too risky for more cautious investors.

“Now, it’s a very quiet time for corporate earnings, but not on Thursday. At the open, we hear from Signet Jewelers. Signet is a total hot-button story because we’ve seen a terrific string of quarters—until the last one, which was definitely poorly received. I think CEO Gina Drosos has really turned the company around. She’s been on the show many times, and while there are some hiccups, I believe the stock is relatively inexpensive. That said, Signet is such a wild trader that I’d put it in the category of “not for the squeamish.”

In its Q2 2024 earnings report, Signet Jewelers Limited (NYSE:SIG) exceeded analyst expectations with adjusted earnings per share (EPS) of $1.55, though this was down from $2.68 a year ago. Signet Jewelers Limited (NYSE:SIG)’s sales were $1.61 billion, which was lower than the previous year’s $1.75 billion but still better than expected. Same-store sales fell by 12%, reflecting broader challenges in the retail sector. Despite this, Signet Jewelers Limited (NYSE:SIG) has raised its full-year EPS forecast to between $9.55 and $10.14, showing optimism about its future performance.

Signet Jewelers Limited (NYSE:SIG) has been effectively managing economic challenges through cost-saving measures, investments in digital capabilities, and a focus on engagement jewelry. Its strong cash flow supports ongoing dividend payments and business investments. For Q3 2024, Signet Jewelers Limited (NYSE:SIG) expects sales to be between $1.36 billion and $1.41 billion. While consumer spending is currently weak, Signet Jewelers Limited (NYSE:SIG)’s ability to surpass earnings expectations and improve its annual outlook highlights its potential for long-term growth, supported by its strong brand and digital retail strategies.