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Is Jabil (JBL) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Jabil (JBL - Free Report) . JBL is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.72 right now. For comparison, its industry sports an average P/E of 10.94. JBL's Forward P/E has been as high as 11.10 and as low as 7.72, with a median of 9.84, all within the past year.

Investors should also note that JBL holds a PEG ratio of 0.81. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. JBL's industry currently sports an average PEG of 0.96. Over the last 12 months, JBL's PEG has been as high as 0.93 and as low as 0.64, with a median of 0.82.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. JBL has a P/S ratio of 0.31. This compares to its industry's average P/S of 0.36.

Finally, we should also recognize that JBL has a P/CF ratio of 5.93. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. JBL's P/CF compares to its industry's average P/CF of 8.17. Over the past 52 weeks, JBL's P/CF has been as high as 7.31 and as low as 5.45, with a median of 6.38.

Value investors will likely look at more than just these metrics, but the above data helps show that Jabil is likely undervalued currently. And when considering the strength of its earnings outlook, JBL sticks out at as one of the market's strongest value stocks.


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