Diamonds may be forever, but jewelry stocks are cyclical, even though precious metals and gems have been a store of value for thousands of years.
Although most investors probably own some jewelry or have purchased some for a loved one, jewelry stocks are not a closely followed sector. However, jewelry sector stocks offer some of the same benefits as luxury stocks, especially if they have strong brand names. Tiffany's acquisition by Louis Vuitton Moet Hennessy (LVMUY 0.05%) makes perfect sense in that regard. Like the luxury sector, jewelry stocks are vulnerable to the same cycles as consumer discretionary stocks; people tend to buy more and spend more on jewelry during good times than bad.
That's one reason to take a closer look at jewelry stocks. Despite the current economic trends, affluent Americans are still spending large sums on jewelry, and jewelry retailers are likely to benefit. Keep reading to see three of the best jewelry stocks you can buy today.
Top jewelry stocks
Top jewelry stocks in 2024
| Company | Market Cap | Description |
|---|---|---|
| Signet Jewelers (NYSE:SIG) | $3.6 billion | Mid-market jewelry retailer and owner of brands such as Kay, Jared, and Zales. |
| Pandora (OTC:PANDY) | $13.8 billion | Global jewelry retailer. |
| Movado Group (NYSE:MOV) | $501.5 million | Maker of luxury watches. |
1. Signet Jewelers
1. Signet Jewelers
As the only publicly traded U.S. jewelry retailer worth more than $1 billion, Signet is likely the first stock most investors think of when they think of jewelry. The company has almost 3,000 stores, most of which are in the U.S. under a wide range of brand names. The stock has rebounded strongly from the COVID-19 pandemic, but a pause in marriage engagements during the pandemic has weighed on its performance more recently.
As a mid-market retailer with banners such as Zales and Jared, Signet doesn't have the luxury brand power of some other jewelry stocks, making it more sensitive to macroeconomic trends. The company has focused on gaining market share in a fragmented industry by investing in a digital platform it calls connected commerce.
It also has a long history of acquisitions, most recently acquiring Diamonds Direct in 2021 for $490 million. With adjusted operating income expected to be in the neighborhood of $590 million to $675 million in its fiscal 2025, which ends in January 2025, the market may not be appreciating the rebound in the business.
2. Pandora
2. Pandora
Denmark-based Pandora has also been benefiting from the pandemic rebound. The retailer targets a higher-end market than Signet and has about 2,700 stores and more than 4,000 distribution points from retail partners.
Pandora has seen strong growth in 2024 with organic revenue growth up 15%, especially in the U.S. It expects full-year organic revenue to grow 9% to 12%.
Thanks to its strong retail presence and advertising spending, the company has become a mindshare leader in the industry, the first company consumers think about when they think of jewelry. For instance, management says that one-third of all Google searches for branded jewelry are for Pandora. Its strong online profile and higher-end price points have helped it achieve strong operating margins. Under its Phoenix strategy, the company invests in personalization and brand reach, expanding its core markets in the U.S. and China. The strategy appears to be paying off.
3. Movado Group
3. Movado Group
Watches are a subsector of the jewelry industry, and Movado Group is one of the biggest publicly traded companies in the watch industry. It designs and distributes high-end watches for Lacoste, Hugo Boss, and Coach.
The past decade has been challenging for watchmakers as smartphones have rendered timepieces mostly unnecessary, and smartwatches have added another level of complexity to the market. Movado has jumped into the smartwatch game with luxury pieces that retail for $1,000 and more. Although most of its business still comes from traditional watches, it's a smart move for the company to compete for consumers looking for more high-tech features.
Growth has been a challenge in recent quarters with revenue falling 0.7% in its fiscal second quarter of 2025, and it's still priced like a value stock at a price-to-earnings (P/E) ratio of 12, indicating the market is skeptical of its continuing growth. If it can deliver strong results, the stock has plenty of room to move higher.
Related investing topics
Watch consumer spending
Like luxury items, the diamond market and the broader jewelry sector are sensitive to overall consumer spending since people tend to spend more on such items when the economy is strong. Outside of developing a luxury brand, it's difficult for these companies to build a competitive advantage, but these three are all investing in omnichannel capabilities and other ways of strengthening their relationships with consumers.
The market is forecasting slower growth in the industry since consumers have been pinched by inflation, but that should eventually change, especially with interest rates expected to come down. If jewelry demand bounces back, these stocks could have significant upside ahead of them.
