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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Jabil (JBL - Free Report) . JBL is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.85. This compares to its industry's average Forward P/E of 10.99. JBL's Forward P/E has been as high as 11.10 and as low as 8.25, with a median of 9.85, all within the past year.
We also note that JBL holds a PEG ratio of 0.82. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. JBL's PEG compares to its industry's average PEG of 0.97. Over the past 52 weeks, JBL's PEG has been as high as 0.93 and as low as 0.69, with a median of 0.82.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. JBL has a P/S ratio of 0.31. This compares to its industry's average P/S of 0.39.
Finally, we should also recognize that JBL has a P/CF ratio of 6.03. 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. This stock's P/CF looks attractive against its industry's average P/CF of 8.36. Over the past year, JBL's P/CF has been as high as 7.31 and as low as 5.45, with a median of 6.34.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Jabil is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, JBL feels like a great value stock at the moment.
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Is Jabil (JBL) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Jabil (JBL - Free Report) . JBL is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.85. This compares to its industry's average Forward P/E of 10.99. JBL's Forward P/E has been as high as 11.10 and as low as 8.25, with a median of 9.85, all within the past year.
We also note that JBL holds a PEG ratio of 0.82. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. JBL's PEG compares to its industry's average PEG of 0.97. Over the past 52 weeks, JBL's PEG has been as high as 0.93 and as low as 0.69, with a median of 0.82.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. JBL has a P/S ratio of 0.31. This compares to its industry's average P/S of 0.39.
Finally, we should also recognize that JBL has a P/CF ratio of 6.03. 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. This stock's P/CF looks attractive against its industry's average P/CF of 8.36. Over the past year, JBL's P/CF has been as high as 7.31 and as low as 5.45, with a median of 6.34.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Jabil is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, JBL feels like a great value stock at the moment.