In the latest close session, Jabil (JBL) was up +1.75% at $224.34. The stock exceeded the S&P 500, which registered a gain of 0.78% for the day. Meanwhile, the Dow experienced a rise of 0.47%, and the technology-dominated Nasdaq saw an increase of 0.98%.
Prior to today's trading, shares of the electronics manufacturer had lost 0.21% lagged the Computer and Technology sector's gain of 5.34% and the S&P 500's gain of 1.86%.
Market participants will be closely following the financial results of Jabil in its upcoming release. The company is forecasted to report an EPS of $2.92, showcasing a 26.96% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $7.6 billion, up 9.17% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.39 per share and revenue of $29.15 billion, indicating changes of +10.6% and +0.93%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Jabil. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 has shifted 0.54% upward. Jabil is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Jabil's current valuation metrics, including its Forward P/E ratio of 23.49. This expresses a premium compared to the average Forward P/E of 21.77 of its industry.
We can also see that JBL currently has a PEG ratio of 1.42. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Electronics - Manufacturing Services industry currently had an average PEG ratio of 1.45 as of yesterday's close.
The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 11, which puts it in the top 5% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Jabil, Inc. (JBL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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