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Jabil (JBL) Dips More Than Broader Markets: What You Should Know

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Jabil (JBL - Free Report) closed the most recent trading day at $57.57, moving -1.4% from the previous trading session. This change lagged the S&P 500's daily loss of 0.58%. At the same time, the Dow lost 0.75%, and the tech-heavy Nasdaq gained 0.34%.

Prior to today's trading, shares of the electronics manufacturer had lost 2.03% over the past month. This has was narrower than the Computer and Technology sector's loss of 12.19% and the S&P 500's loss of 10.53% in that time.

Jabil will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.62, up 24.62% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.21 billion, up 13.74% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.25 per share and revenue of $32.61 billion. These totals would mark changes of +29.23% and +11.34%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Jabil. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Jabil is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Jabil currently has a Forward P/E ratio of 8.06. For comparison, its industry has an average Forward P/E of 8.86, which means Jabil is trading at a discount to the group.

Also, we should mention that JBL has a PEG ratio of 0.67. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Manufacturing Services was holding an average PEG ratio of 0.67 at yesterday's closing price.

The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 22, which puts it in the top 9% 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.

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