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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company to watch right now 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 9.43 right now. For comparison, its industry sports an average P/E of 10.70. Over the past year, JBL's Forward P/E has been as high as 13.65 and as low as 7.72, with a median of 9.63.
JBL is also sporting a PEG ratio of 0.79. 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 1.17. 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 love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. JBL has a P/S ratio of 0.28. This compares to its industry's average P/S of 0.34.
Finally, we should also recognize that JBL has a P/CF ratio of 5.92. 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 current P/CF looks attractive when compared to its industry's average P/CF of 7.42. 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 only a few of the key metrics included in Jabil's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, JBL looks like an impressive value stock at the moment.
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Should Value Investors Buy Jabil (JBL) Stock?
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company to watch right now 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 9.43 right now. For comparison, its industry sports an average P/E of 10.70. Over the past year, JBL's Forward P/E has been as high as 13.65 and as low as 7.72, with a median of 9.63.
JBL is also sporting a PEG ratio of 0.79. 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 1.17. 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 love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. JBL has a P/S ratio of 0.28. This compares to its industry's average P/S of 0.34.
Finally, we should also recognize that JBL has a P/CF ratio of 5.92. 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 current P/CF looks attractive when compared to its industry's average P/CF of 7.42. 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 only a few of the key metrics included in Jabil's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, JBL looks like an impressive value stock at the moment.