Jabil (JBL) closed at $38.16 in the latest trading session, marking a -1.29% move from the prior day. This change lagged the S&P 500’s 0.66% loss on the day. Meanwhile, the Dow lost 1.01%, and the Nasdaq, a tech-heavy index, lost 0.55%.
Heading into today, shares of the electronics manufacturer had gained 0.55% over the past month, lagging the Computer and Technology sector’s gain of 1.57% and the S&P 500’s gain of 1.77% in that time.
JBL will be looking to display strength as it nears its next earnings release. On that day, JBL is projected to report earnings of $0.94 per share, which would represent year-over-year growth of 4.44%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.96 billion, up 6.93% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.43 per share and revenue of $25.96 billion, which would represent changes of +15.1% and +2.67%, respectively, from the prior year.
Any recent changes to analyst estimates for JBL should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. JBL is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, JBL is currently trading at a Forward P/E ratio of 11.29. For comparison, its industry has an average Forward P/E of 13.04, which means JBL is trading at a discount to the group.
It is also worth noting that JBL currently has a PEG ratio of 0.94. 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. The Electronics – Manufacturing Services was holding an average PEG ratio of 0.94 at yesterday’s closing price.
The Electronics – Manufacturing Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 39% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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