Back to top

Image: Bigstock

Here's Why Jabil (JBL) Gained But Lagged the Market Today

Read MoreHide Full Article

Jabil (JBL - Free Report) closed the most recent trading day at $124.94, moving +0.1% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 1.89%. Elsewhere, the Dow saw an upswing of 1.7%, while the tech-heavy Nasdaq appreciated by 1.78%.

The electronics manufacturer's stock has dropped by 4.15% in the past month, falling short of the Computer and Technology sector's loss of 0.81% and the S&P 500's loss of 1.14%.

Analysts and investors alike will be keeping a close eye on the performance of Jabil in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.56, reflecting a 10.82% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $8.73 billion, indicating a 9.44% decline compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $9.50 per share and a revenue of $33.46 billion, demonstrating changes of +10.08% and -3.57%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Jabil. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.12% lower. Currently, Jabil is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Jabil is currently trading at a Forward P/E ratio of 13.14. For comparison, its industry has an average Forward P/E of 13.14, which means Jabil is trading at no noticeable deviation to the group.

One should further note that JBL currently holds a PEG ratio of 1.1. 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 industry had an average PEG ratio of 1.1 as trading concluded yesterday.

The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 36, placing it within the top 15% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

See More Zacks Research for These Tickers

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

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

Published in