Signet Jewelers stock jumped 13.7% yesterday after the company beat earnings expectations in its Q4 report. The stock is now hovering near $90 a share, giving Signet a market cap of roughly $3.2B. On the surface, that’s cheap for a company expected to make $3B in cumulative free cash flow over the next five years. But Signet’s total FCF over the past five years also amounted to about $3B, yet the stock failed to break the $110 resistance area on three separate occasions in 2021, 2024 and 2025.
Given that sales are guided to remain near $6.75B for the third year in a row in fiscal 2027, it is safe to say that valuation and growth are not among the factors the bulls can rely on for capital appreciation. What could push Signet higher, however, would be investors’ attitude towards the company. According to the Elliott Wave chart below, that’s likely to keep improving going forward.
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It reveals that the rise from $45.55 to $110.20 between March and October of last year can be seen as a five-wave impulse. We’ve labeled the pattern (1)-(2)-(3)-(4)-(5), where two lower degrees of the trend are visible within the structure of wave (3). And since a three-wave correction follows every impulse, the resistance near $110 triggered a decline back to $78.70 earlier this month, which is best counted as a (w)-(x)-(y) double zigzag.
If this count is correct, the Elliott Wave cycle in Signet Jewelers stock is now complete. It is time for the trend to resume in the direction of the impulsive sequence. The $110 resistance area is likely to finally give up in 2026 and we won’t be surprised if the bulls then go for a new record high above $153. It looks like yesterday’s jump could be the beginning of a sustained rally in Signet.
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