Back to top

Image: Bigstock

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

Read MoreHide Full Article

Jabil (JBL - Free Report) closed at $61.84 in the latest trading session, marking a -0.66% move from the prior day. This move lagged the S&P 500's daily gain of 0.17%. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq lost 0.44%.

Prior to today's trading, shares of the electronics manufacturer had gained 0.05% over the past month. This has lagged the Computer and Technology sector's gain of 4.39% and the S&P 500's gain of 3.19% in that time.

Investors will be hoping for strength from Jabil as it approaches its next earnings release. On that day, Jabil is projected to report earnings of $1.80 per share, which would represent year-over-year growth of 12.5%. Our most recent consensus estimate is calling for quarterly revenue of $8.28 billion, up 5.72% from the year-ago period.

JBL's full-year Zacks Consensus Estimates are calling for earnings of $6.33 per share and revenue of $31.46 billion. These results would represent year-over-year changes of +12.83% and +7.44%, respectively.

Any recent changes to analyst estimates for Jabil should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Jabil is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, Jabil currently has a Forward P/E ratio of 9.84. For comparison, its industry has an average Forward P/E of 9.99, which means Jabil is trading at a discount to the group.

We can also see that JBL currently has a PEG ratio of 0.82. 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 0.84 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 197, putting it in the bottom 23% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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