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A market analysis identifies Tapestry, Signet Jewelers, and Host Hotels & Resorts as strong buys for 2026, with Signet reporting an 86.8% average earnings surprise.
Declining consumer sentiment and persistent inflation are forcing U.S. households to cut discretionary spending and focus on necessities. This defensive shift is drawing investor attention to consumer staples, though a bifurcated 'K-shaped' economy shows continued strength in hard luxuries.
Signet Jewelers' stock fell after the company issued a holiday sales forecast below analyst expectations, signaling consumer spending caution. The negative reaction, despite a third-quarter earnings beat, reflects broader investor anxiety over the retail sector's health amid a volatile economic environment.