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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Jabil (JBL - Free Report) . JBL is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 10.50 right now. For comparison, its industry sports an average P/E of 11.55. Over the last 12 months, JBL's Forward P/E has been as high as 13.65 and as low as 7.72, with a median of 9.57.
We also note that JBL holds a PEG ratio of 0.88. 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 1.25. JBL's PEG has been as high as 1.14 and as low as 0.64, with a median of 0.80, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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 0.29. This compares to its industry's average P/S of 0.36.
Finally, investors should note that JBL has a P/CF ratio of 5.92. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.53. Within the past 12 months, JBL's P/CF has been as high as 7.31 and as low as 5.45, with a median of 6.38.
These are just a handful of the figures considered in Jabil's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that JBL is an impressive value stock right now.
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Are Investors Undervaluing Jabil (JBL) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Jabil (JBL - Free Report) . JBL is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 10.50 right now. For comparison, its industry sports an average P/E of 11.55. Over the last 12 months, JBL's Forward P/E has been as high as 13.65 and as low as 7.72, with a median of 9.57.
We also note that JBL holds a PEG ratio of 0.88. 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 1.25. JBL's PEG has been as high as 1.14 and as low as 0.64, with a median of 0.80, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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 0.29. This compares to its industry's average P/S of 0.36.
Finally, investors should note that JBL has a P/CF ratio of 5.92. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.53. Within the past 12 months, JBL's P/CF has been as high as 7.31 and as low as 5.45, with a median of 6.38.
These are just a handful of the figures considered in Jabil's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that JBL is an impressive value stock right now.