Jabil (JBL) closed at $61.93 in the latest trading session, marking a -1.85% move from the prior day. This move lagged the S&P 500’s daily loss of 1.81%. Elsewhere, the Dow lost 1.47%, while the tech-heavy Nasdaq lost 0.51%.
– Zacks Heading into today, shares of the electronics manufacturer had lost 10.18% over the past month, lagging the Computer and Technology sector’s loss of 1.94% and the S&P 500’s loss of 1.84% in that time.
Wall Street will be looking for positivity from Jabil as it approaches its next earnings report date. On that day, Jabil is projected to report earnings of $1.47 per share, which would represent year-over-year growth of 15.75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.41 billion, up 8.59% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.58 per share and revenue of $31.83 billion, which would represent changes of +17.29% and +8.7%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Jabil. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Jabil currently has a Zacks Rank of #2 (Buy).
Digging into valuation, Jabil currently has a Forward P/E ratio of 9.59. Its industry sports an average Forward P/E of 9.51, so we one might conclude that Jabil is trading at a premium comparatively.
We can also see that JBL currently has a PEG ratio of 0.8. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. The Electronics – Manufacturing Services was holding an average PEG ratio of 0.79 at yesterday’s closing price.
The Electronics – Manufacturing Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 194, putting it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Jabil, Inc. (JBL): Free Stock Analysis Report
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