Tiffany & Co. (TIF), Blue Nile Inc (NILE), Signet Jewelers Ltd. (SIG): Three Ways to Invest in a Girl’s Best Friend

In the Moment

Few people go to Tiffany & Co. (NYSE:TIF) for a spur of the moment diamond. And visiting the web and waiting for the delivery of a ring is a deliberate act. However, jewelry purchases are often driven by emotion, which is where Signet Jewelers Ltd. (NYSE:SIG) comes in. The company is one of the largest store-based retailers in the United States and England, with brands like Kay, Jared, and Signet, among others.

Like the pair above, Signet Jewelers Ltd. (NYSE:SIG)’s top and bottom lines took a hit during the recession. They have since headed sharply higher. Earnings hit $4.35 a share last year on revenue of nearly $4 billion. That compares pretty favorably with Tiffany & Co. (NYSE:TIF)’s $3.8 billion in revenue and $3.25 a share in earnings.

In fact, Signet Jewelers Ltd. (NYSE:SIG) is not only growing its store base organically, but it is buying competitors, too. For example, it opened twice as many Jared and Kay stores year-over-year last year and recently acquired Ultra. This is a good option for investors seeking a mass market jeweler. The shares are at all-time highs, but the PE is only around 15, so there could be more upside.

The Gift of Love

Jewelry stores pitch their wares at the heart strings. That can be good business. Tiffany & Co. (NYSE:TIF) is a solid high-end player, Blue Nile Inc (NASDAQ:NILE) is a respectable and cheap option, and Signet Jewelers Ltd. (NYSE:SIG) fills in the rest. If the economy continues to improve, this trio should see results head higher, too.

The article Three Ways to Invest in a Girl’s Best Friend originally appeared on Fool.com and is written by Reuben Brewer.

Reuben Brewer has no position in any stocks mentioned. The Motley Fool recommends Blue Nile. Reuben is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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