Jabil (JBL) closed the most recent trading day at $206.10, moving -4.43% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.59%. Elsewhere, the Dow gained 0.02%, while the tech-heavy Nasdaq lost 1.46%.
Prior to today's trading, shares of the electronics manufacturer had lost 3.38% lagged the Computer and Technology sector's gain of 3.91% and the S&P 500's gain of 2.49%.
The investment community will be closely monitoring the performance of Jabil in its forthcoming earnings report. The company's upcoming EPS is projected at $2.92, signifying a 26.96% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $7.6 billion, indicating a 9.17% growth compared to the corresponding quarter of the prior year.
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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Jabil. These revisions help to show the ever-changing nature of near-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 utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Jabil boasts a Zacks Rank of #2 (Buy).
In terms of valuation, Jabil is presently being traded at a Forward P/E ratio of 22.98. Its industry sports an average Forward P/E of 21.38, so one might conclude that Jabil is trading at a premium comparatively.
One should further note that JBL currently holds a PEG ratio of 1.39. 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 1.42 based on yesterday's closing prices.
The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 10, positioning it in the top 5% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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