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Jabil (JBL) Gains As Market Dips: What You Should Know

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Jabil (JBL - Free Report) closed at $59.54 in the latest trading session, marking a +1.02% move from the prior day. This move outpaced the S&P 500's daily loss of 0.54%.

Coming into today, shares of the electronics manufacturer had gained 1.52% in the past month. In that same time, the Computer and Technology sector gained 2.05%, while the S&P 500 gained 3.05%.

Wall Street will be looking for positivity from JBL as it approaches its next earnings report date. The company is expected to report EPS of $1.36, up 38.78% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.64 billion, up 4.6% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.54 per share and revenue of $29.54 billion, which would represent changes of +91.03% and +8.34%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for JBL. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. JBL is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, JBL is currently trading at a Forward P/E ratio of 10.65. For comparison, its industry has an average Forward P/E of 10.06, which means JBL is trading at a premium to the group.

Also, we should mention that JBL has a PEG ratio of 0.89. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Electronics - Manufacturing Services stocks are, on average, holding a PEG ratio of 0.8 based on yesterday's closing prices.

The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 33, putting it in the top 13% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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