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Are Investors Undervaluing Jabil (JBL) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 an A grade for Value. The stock holds a P/E ratio of 18.85, while its industry has an average P/E of 24.34. Over the past 52 weeks, JBL's Forward P/E has been as high as 22.12 and as low as 11.17, with a median of 15.92.

Investors will also notice that JBL has a PEG ratio of 1.14. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. JBL's PEG compares to its industry's average PEG of 1.56. 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 1.32.

Finally, investors will want to recognize that JBL has a P/CF ratio of 17.09. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 21.66. Over the past year, JBL's P/CF has been as high as 18.82 and as low as 5.66, with a median of 12.25.

Value investors will likely look at more than just these metrics, but the above data helps show that Jabil is likely undervalued currently. And when considering the strength of its earnings outlook, JBL sticks out as one of the market's strongest value stocks.


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