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Jabil (JBL) Gains But Lags Market: What You Should Know

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Jabil (JBL - Free Report) closed at $58.99 in the latest trading session, marking a +0.1% move from the prior day. This change lagged the S&P 500's 0.6% gain on the day.

Prior to today's trading, shares of the electronics manufacturer had gained 2.52% over the past month. This has lagged the Computer and Technology sector's gain of 2.88% and outpaced the S&P 500's gain of 1.21% in that time.

JBL will be looking to display strength as it nears its next earnings release. On that day, JBL is projected to report earnings of $1.36 per share, which would represent year-over-year growth of 38.78%. Meanwhile, our latest consensus estimate is calling for revenue of $7.64 billion, up 4.6% from the prior-year quarter.

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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. JBL currently has a Zacks Rank of #2 (Buy).

In terms of valuation, JBL is currently trading at a Forward P/E ratio of 10.65. This represents a premium compared to its industry's average Forward P/E of 10.05.

Investors should also note that JBL has a PEG ratio of 0.89 right now. 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. Electronics - Manufacturing Services stocks are, on average, holding a PEG ratio of 0.79 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 37, putting it in the top 15% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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