Signet Jewelers benefits from US-India trade deal reducing tariffs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 18 2024
0mins
Should l Buy SIG?
Source: 4
Signet Jewelers Ltd (SIG) saw a price increase of 4.92% as it reached a 20-day high.
The recent US-India trade deal significantly reduces tariffs on Indian imports, which is expected to benefit Signet Jewelers as approximately 50% of its inventory is sourced from India. Jefferies analyst Randal Konik noted that the tariff reduction will allow for incremental margin expansion, with the weighted-average tariff impact dropping from 29.6% to 15.1%. This positive development is likely to enhance Signet's competitive position in the retail sector.
The implications of this trade deal extend beyond Signet, as it may also provide margin benefits to other retailers, indicating a potential shift in the retail landscape.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy SIG?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on SIG
Wall Street analysts forecast SIG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SIG is 114.71 USD with a low forecast of 90.00 USD and a high forecast of 150.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
4 Buy
3 Hold
0 Sell
Moderate Buy
Current: 92.370
Low
90.00
Averages
114.71
High
150.00
Current: 92.370
Low
90.00
Averages
114.71
High
150.00
About SIG
Signet Jewelers Ltd is a Bermuda-based holding company. It is a retailer of diamond jewelry. It operates through its 100% owned subsidiaries with sales primarily in the United States (US), United Kingdom (UK) and Canada. It manages its business through three reportable segments: North America, International, and Other. The North America segment operates across the United States and Canada. Its United States stores operate nationally in malls and off-mall locations, as well as online, principally as Kay (Kay Jewelers and Kay Outlet), Zales (Zales Jewelers and Zales Outlet), Jared (Jared Jewelers and Jared Vault), Diamonds Direct, Banter by Piercing Pagoda, Rocksbox, and Digital brands, James Allen and Blue Nile. Its Canadian stores operate as Peoples Jewelers. The International segment operates stores in the United Kingdom and Republic of Ireland as well as online. The Other segment consists of subsidiaries involved in the purchasing and conversion of rough diamonds to polished stones.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
US-India Trade Deal Reduces Tariffs
- Tariff Reduction: The latest US-India trade deal cuts US tariffs on Indian imports to approximately 18%, while India commits to lowering barriers on select US goods and increasing purchases of US energy, agriculture, and manufactured products, thereby improving bilateral trade relations.
- Energy Procurement Shift: India’s commitment to phase out Russian oil purchases and redirect a significant portion of its energy buying towards the US and allied suppliers not only supports the growth of US energy exports but may also reshape the global energy market dynamics.
- Signet Jewelers Benefit: Jefferies analyst Randal Konik highlighted that Signet Jewelers Limited (SIG) stands to gain significantly as about 50% of its inventory is sourced from India, with the tariff reduction creating opportunities for incremental margin expansion, as its weighted-average tariff impact has dropped from 29.6% to 15.1%.
- Retail Sector Impact: Beyond Signet, Konik's team believes the tariff changes will also provide additional margin tailwinds for companies like Five Below (FIVE), Revolve Group (RVLV), and Nike (NKE), further enhancing their competitive positions in the market.
See More
ClearBridge Small Cap Strategy Q4 Performance Analysis
- Performance Overview: The ClearBridge Small Cap Strategy underperformed the Russell 2000 Index in Q4 2025, yet achieved positive absolute performance, indicating resilience and potential investment value amidst market volatility.
- New Investment Positions: The strategy initiated a new position in Landstar System (LSTR) during the quarter, while also adding to its stakes in Interparfums (IPAR) and Signet Jewelers (SIG), reflecting optimism about their future growth potential.
- Portfolio Diversification: Additionally, the strategy established new positions in Solstice Advanced Materials (SOLS), Upwork (UPWK), OPENLANE (OPLN), and Arlo Technologies (ARLO), further diversifying its portfolio to adapt to market changes.
- Exit Strategy: The fund exited positions in several companies, including Alexander & Baldwin (ALEX) and Avidity Biosciences (RNA), demonstrating its ability to dynamically adjust the portfolio to optimize overall performance.
See More
Signet Jewelers Ltd Analyzes Dividend History and Volatility for Investment Decisions
- Dividend Yield Expectation: Analysis of Signet Jewelers Ltd's dividend history indicates a potential annualized yield of 1.5%, providing investors with a reasonable return expectation amidst profitability fluctuations.
- Volatility Assessment: The calculated trailing twelve-month volatility for Signet stands at 51%, indicating significant price fluctuations, which necessitates careful risk-reward evaluation by investors.
- Options Trading Dynamics: On Tuesday, the put volume among S&P 500 components reached 785,316 contracts, while call volume hit 1.51M, reflecting a market preference for call options and indicating investor optimism about future price increases.
- Options Market Analysis: The current put-call ratio of 0.52 is significantly lower than the long-term median of 0.65, suggesting that investors are more inclined to purchase call options, which may influence Signet's stock price trajectory.
See More
Activist Investors Target Signet Jewelers, Natural Gas Services, and Other Stocks
- Increased Holdings: There has been a notable rise in the holdings of various assets, indicating a shift in investment strategies among market participants.
- Market Implications: This increase in holdings may suggest growing confidence in certain sectors or assets, potentially influencing market trends and investor behavior.
- Sector Focus: Specific sectors are seeing more significant increases in holdings, which could reflect changing economic conditions or investor sentiment.
- Future Outlook: Analysts are monitoring these trends closely to assess their potential impact on future market performance and investment opportunities.
See More
The Rise in Silver Prices Is Causing New Challenges for Jewelers
- Silver's Performance: Silver is poised to finish the year with record gains, indicating a strong market trend.
- Challenges for Jewelers: Jewelers are facing difficulties due to tariffs and the ongoing rise in gold prices, complicating their operations.
See More
Significant Options Activity on Thursday: SIG, NVDA, APP
NVIDIA Options Trading: NVIDIA Corp (NVDA) experienced a significant options trading volume of 2.1 million contracts, equating to about 212.2 million underlying shares, which is 103.5% of its average daily trading volume. Notably, the $175 strike call option expiring on December 19, 2025, saw 113,771 contracts traded.
Applovin Options Trading: Applovin Corp (APP) recorded an options trading volume of 35,703 contracts, representing approximately 3.6 million underlying shares, or 92.7% of its average daily trading volume. The $700 strike call option expiring on December 19, 2025, had 1,476 contracts traded.
Comparison of Trading Volumes: The trading volumes for both NVDA and APP indicate heightened investor interest, with NVDA's options trading significantly surpassing its average daily volume compared to APP's substantial but lower volume.
Resource for Options Expirations: For more information on various available expirations for SIG, NVDA, or APP options, StockOptionsChannel.com is recommended as a resource.
See More
US-India Trade Deal Reduces Tariffs
- Tariff Reduction: The latest US-India trade deal cuts US tariffs on Indian imports to approximately 18%, while India commits to lowering barriers on select US goods and increasing purchases of US energy, agriculture, and manufactured products, thereby improving bilateral trade relations.
- Energy Procurement Shift: India’s commitment to phase out Russian oil purchases and redirect a significant portion of its energy buying towards the US and allied suppliers not only supports the growth of US energy exports but may also reshape the global energy market dynamics.
- Signet Jewelers Benefit: Jefferies analyst Randal Konik highlighted that Signet Jewelers Limited (SIG) stands to gain significantly as about 50% of its inventory is sourced from India, with the tariff reduction creating opportunities for incremental margin expansion, as its weighted-average tariff impact has dropped from 29.6% to 15.1%.
- Retail Sector Impact: Beyond Signet, Konik's team believes the tariff changes will also provide additional margin tailwinds for companies like Five Below (FIVE), Revolve Group (RVLV), and Nike (NKE), further enhancing their competitive positions in the market.
See More
ClearBridge Small Cap Strategy Q4 Performance Analysis
- Performance Overview: The ClearBridge Small Cap Strategy underperformed the Russell 2000 Index in Q4 2025, yet achieved positive absolute performance, indicating resilience and potential investment value amidst market volatility.
- New Investment Positions: The strategy initiated a new position in Landstar System (LSTR) during the quarter, while also adding to its stakes in Interparfums (IPAR) and Signet Jewelers (SIG), reflecting optimism about their future growth potential.
- Portfolio Diversification: Additionally, the strategy established new positions in Solstice Advanced Materials (SOLS), Upwork (UPWK), OPENLANE (OPLN), and Arlo Technologies (ARLO), further diversifying its portfolio to adapt to market changes.
- Exit Strategy: The fund exited positions in several companies, including Alexander & Baldwin (ALEX) and Avidity Biosciences (RNA), demonstrating its ability to dynamically adjust the portfolio to optimize overall performance.
See More
Signet Jewelers Ltd Analyzes Dividend History and Volatility for Investment Decisions
- Dividend Yield Expectation: Analysis of Signet Jewelers Ltd's dividend history indicates a potential annualized yield of 1.5%, providing investors with a reasonable return expectation amidst profitability fluctuations.
- Volatility Assessment: The calculated trailing twelve-month volatility for Signet stands at 51%, indicating significant price fluctuations, which necessitates careful risk-reward evaluation by investors.
- Options Trading Dynamics: On Tuesday, the put volume among S&P 500 components reached 785,316 contracts, while call volume hit 1.51M, reflecting a market preference for call options and indicating investor optimism about future price increases.
- Options Market Analysis: The current put-call ratio of 0.52 is significantly lower than the long-term median of 0.65, suggesting that investors are more inclined to purchase call options, which may influence Signet's stock price trajectory.
See More
Activist Investors Target Signet Jewelers, Natural Gas Services, and Other Stocks
- Increased Holdings: There has been a notable rise in the holdings of various assets, indicating a shift in investment strategies among market participants.
- Market Implications: This increase in holdings may suggest growing confidence in certain sectors or assets, potentially influencing market trends and investor behavior.
- Sector Focus: Specific sectors are seeing more significant increases in holdings, which could reflect changing economic conditions or investor sentiment.
- Future Outlook: Analysts are monitoring these trends closely to assess their potential impact on future market performance and investment opportunities.
See More
The Rise in Silver Prices Is Causing New Challenges for Jewelers
- Silver's Performance: Silver is poised to finish the year with record gains, indicating a strong market trend.
- Challenges for Jewelers: Jewelers are facing difficulties due to tariffs and the ongoing rise in gold prices, complicating their operations.
See More
Significant Options Activity on Thursday: SIG, NVDA, APP
NVIDIA Options Trading: NVIDIA Corp (NVDA) experienced a significant options trading volume of 2.1 million contracts, equating to about 212.2 million underlying shares, which is 103.5% of its average daily trading volume. Notably, the $175 strike call option expiring on December 19, 2025, saw 113,771 contracts traded.
Applovin Options Trading: Applovin Corp (APP) recorded an options trading volume of 35,703 contracts, representing approximately 3.6 million underlying shares, or 92.7% of its average daily trading volume. The $700 strike call option expiring on December 19, 2025, had 1,476 contracts traded.
Comparison of Trading Volumes: The trading volumes for both NVDA and APP indicate heightened investor interest, with NVDA's options trading significantly surpassing its average daily volume compared to APP's substantial but lower volume.
Resource for Options Expirations: For more information on various available expirations for SIG, NVDA, or APP options, StockOptionsChannel.com is recommended as a resource.
See More
