Brilliant Earth Stock: Is It a Good Buy?
As long as people continue to get married, celebrate special occasions, and get dressed up to go out, there will be a market for fine jewelry. If you’re looking for a jewelry stock to add some sparkle to your portfolio, Brilliant Earth is worth a look.
What Is Brilliant Earth?
Brilliant Earth Group Inc. is an online and brick-and-mortar jewelry retailer. On its website, Brilliant Earth describes its mission as “to cultivate a more transparent, sustainable, compassionate and inclusive jewelry industry.” The company sells diamonds that are sourced in an environmentally responsible and ethical way. It purchases diamonds only from suppliers that source them from specific mines that follow labor, trade and environmental standards that are internationally recognized.
Brilliant Earth sells wedding and engagement rings, diamonds, precious and semiprecious gemstones and custom and stock jewelry. All gemstones are ethically sourced, and there is a focus on sustainability in the metals the company uses. Brilliant Earth supports several key charitable organizations, including Pure Earth, which promotes mercury-free mining; Feeding America, which fights food insecurity; the Rainforest Alliance, which promotes best practices in land management; and more.
In addition to online sales, Brilliant Earth has retail locations in Massachusetts, New York, Pennsylvania, Maryland, Georgia, Illinois, Texas, Colorado, Arizona, California, Washington, Oregon and Washington, D.C.
Brilliant Earth Group’s Earnings
Brilliant Earth Group reported results for the fourth quarter and fiscal year 2021 on March 16, 2022. The company reported 51% net sales growth over the prior year, and 2021 net income of $26.3 million and adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, of $50.5 million. Fourth-quarter GAAP diluted earnings per share were $0.09, and adjusted diluted earnings per share were $0.11.
Is Brilliant Earth a Good Stock To Buy?
Of eight analysts who follow BRLT, six of them rated it a buy and two rated it a strong buy in both January and February, according to Yahoo Finance. This results in a recommendation rating of 1.7 on a scale of 1 to 5, where 1 is a strong buy, 2 is a buy and 5 is a sell. The average price target from these eight analysts is $22.17, and the stock was trading at $9.72 per share at the close on March 28.
No one has a crystal ball, of course, but smart investors always look to see where the company says it will go in the near future. For fiscal year 2022, Brilliant Earth expects net sales of $485 million to $500 million, an increase of 27.6% to 31.5% over the $380.2 million reported for 2021. While this is a smaller increase than the 51% jump in 2021, it still represents significant growth.
Many investors seek out stocks that support their values, including environmental and social concerns. But we all invest to make money. Brilliant Earth may be that rare investment that provides a good return while supporting worthwhile causes.
Data is accurate as of March 28, 2022, and subject to change.
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- Brilliant Earth Group. 2022. "Brilliant Earth Reports Outstanding Fourth Quarter and Fiscal Year 2021 Results."
- Yahoo Finance. "Brilliant Earth Group, Inc. (BRLT)."