Back to top

Image: Bigstock

Jabil (JBL) Increases Despite Market Slip: Here's What You Need to Know

Read MoreHide Full Article

The most recent trading session ended with Jabil (JBL - Free Report) standing at $167.51, reflecting a +0.04% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily loss of 0.39%. At the same time, the Dow lost 0.27%, and the tech-heavy Nasdaq lost 0.38%.

Shares of the electronics manufacturer witnessed a gain of 29.05% over the previous month, beating the performance of the Computer and Technology sector with its gain of 19.26% and the S&P 500's gain of 13.07%.

The investment community will be closely monitoring the performance of Jabil in its forthcoming earnings report. It is anticipated that the company will report an EPS of $2.28, marking a 20.63% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $6.98 billion, showing a 3.18% escalation compared to the year-ago quarter.

JBL's full-year Zacks Consensus Estimates are calling for earnings of $8.93 per share and revenue of $27.82 billion. These results would represent year-over-year changes of +5.18% and -3.68%, respectively.

Any recent changes to analyst estimates for Jabil should also be noted by investors. 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. 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, Jabil holds a Zacks Rank of #3 (Hold).

In terms of valuation, Jabil is currently trading at a Forward P/E ratio of 18.75. This signifies a discount in comparison to the average Forward P/E of 18.98 for its industry.

It's also important to note that JBL currently trades at a PEG ratio of 1.5. 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. Electronics - Manufacturing Services stocks are, on average, holding a PEG ratio of 1.27 based on yesterday's closing prices.

The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 174, this industry ranks in the bottom 30% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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