SIG Should I Buy
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BUY now. SIG is in a constructive uptrend (bullish moving-average stack) while fundamentals just re-accelerated (Q3 FY2026 revenue +3.14% YoY, EPS +308% YoY) and institutional activity is supportive (hedge fund buying +205.96% QoQ; a fund report shows increased SIG stake). Options positioning is mixed (bullish open-interest skew but bearish volume skew), suggesting some near-term hedging, but not enough to outweigh the improving earnings trajectory and mostly favorable Street setup. For an impatient buyer, current price near the pivot (~92.14) offers a reasonable entry with upside toward the 95.74–97.96 resistance zone.
Trend is bullish-to-stable. Moving averages are stacked bullish (SMA_5 > SMA_20 > SMA_200), indicating a positive intermediate trend. MACD histogram is above zero (0.142) but positively contracting, implying upside momentum is still present but cooling rather than accelerating. RSI(6) ~54 is neutral, consistent with consolidation after a move. Key levels: Pivot 92.14 (price ~92.9 is just above it, supportive for entries). Near resistance at R1 95.74 then R2 97.96; supports at S1 88.54 then S2 86.32. The pattern-based forward look provided is slightly negative over week/month, but the dominant MA trend argues pullbacks are more likely to be bought than to reverse the trend outright.
Improving operating performance: Q3 FY2026 showed revenue growth and a sharp rebound in profitability (net income +270% YoY; EPS +308% YoY) with higher gross margin (+3.67% YoY).
Institutional support: hedge funds are net buyers (+205.96% QoQ) and a recent strategy update explicitly increased its SIG stake.
Street thesis tailwinds: multiple bullish notes cite initiatives driving comps and lab-grown diamonds shifting from headwind to tailwind (per Jefferies).
Near-term options tape is defensive (put-heavy volume), implying some traders are positioning for downside or protecting gains.
Macro/consumer sensitivity and tariff exposure remain recurring concerns (noted by Telsey/Wells Fargo; holiday demand expectations/momentum risk).
Momentum is moderating (MACD histogram still positive but contracting), so upside may come in steps rather than a straight line.
Latest quarter: 2026/Q3. Revenue increased to $1.3918B (+3.14% YoY), indicating a return to top-line growth. Profitability improved sharply: net income $20.0M (+270.37% YoY) and EPS $0.49 (+308.33% YoY), suggesting operating leverage and/or easier comps. Gross margin rose to 37.28% (+3.67% YoY), a key positive for a discretionary retailer and supportive of earnings durability if demand holds.
Recent trend is mixed but improving on balance: several firms raised price targets after Q3 (Jefferies to $150 and reiterated Buy; UBS to $115 and reiterated Buy; Telsey raised to $96 but kept Market Perform). Wells Fargo cut PT to $90 and stayed Equal Weight, citing slowed momentum and Q4 plan disappointment. Goldman initiated at Neutral with a $96 PT (not a strong endorsement, but not bearish). Overall Wall Street pros: growth/earnings inflection and margin support (including lab-grown tailwind) with multiple Buy ratings and higher PTs. Cons: macro/consumer risk, tariff uncertainty, and skepticism about near-term momentum/holiday outlook from the more cautious shops.
