Back to top

Image: Bigstock

Jabil (JBL) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

In the latest trading session, Jabil (JBL - Free Report) closed at $60.35, marking a +1.38% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.25%.

Prior to today's trading, shares of the electronics manufacturer had gained 4.29% over the past month. This has outpaced the Computer and Technology sector's gain of 1.82% and the S&P 500's gain of 1.65% in that time.

JBL will be looking to display strength as it nears its next earnings release. In that report, analysts expect JBL to post earnings of $1.36 per share. This would mark year-over-year growth of 38.78%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.64 billion, up 4.6% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.54 per share and revenue of $29.54 billion. These totals would mark changes of +91.03% and +8.34%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for JBL. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Within the past 30 days, our consensus EPS projection remained stagnant. JBL is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, JBL is holding a Forward P/E ratio of 10.76. This represents a premium compared to its industry's average Forward P/E of 10.13.

Meanwhile, JBL's PEG ratio is currently 0.9. 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. The Electronics - Manufacturing Services was holding an average PEG ratio of 0.79 at yesterday's closing price.

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 includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow JBL in the coming trading sessions, be sure to utilize

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Jabil, Inc. (JBL) - free report >>

Published in