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

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Jabil (JBL - Free Report) closed the most recent trading day at $79.28, moving +0.6% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.09%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq lost 4.87%.

Coming into today, shares of the electronics manufacturer had lost 5.47% in the past month. In that same time, the Computer and Technology sector gained 0.98%, while the S&P 500 gained 3.31%.

Investors will be hoping for strength from Jabil as it approaches its next earnings release. The company is expected to report EPS of $1.89, up 9.88% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.17 billion, down 1.91% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.37 per share and revenue of $34.51 billion. These totals would mark changes of +9.41% and +3.08%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Jabil. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 has moved 0.18% lower. Jabil is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Jabil is currently trading at a Forward P/E ratio of 9.42. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 9.42.

Meanwhile, JBL's PEG ratio is currently 0.78. 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. Electronics - Manufacturing Services stocks are, on average, holding a PEG ratio of 0.78 based on yesterday's closing prices.

The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 42, which puts it in the top 17% 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.

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


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