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Are Investors Undervaluing Jabil (JBL) Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is Jabil (JBL - Free Report) . JBL is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 18.24. This compares to its industry's average Forward P/E of 19.10. Over the past year, JBL's Forward P/E has been as high as 18.57 and as low as 10.72, with a median of 14.42.

JBL is also sporting a PEG ratio of 1.46. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. JBL's industry currently sports an average PEG of 1.54. Over the last 12 months, JBL's PEG has been as high as 2.17 and as low as 0.95, with a median of 1.37.

Finally, investors will want to recognize that JBL has a P/CF ratio of 16.78. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. JBL's P/CF compares to its industry's average P/CF of 17.02. JBL's P/CF has been as high as 16.78 and as low as 5.56, with a median of 7.87, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Jabil is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, JBL feels like a great value stock at the moment.


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