Jabil (JBL) closed at $209.22 in the latest trading session, marking a -5.03% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 1.17% for the day. Meanwhile, the Dow experienced a drop of 0.53%, and the technology-dominated Nasdaq saw a decrease of 2.04%.
The electronics manufacturer's shares have seen an increase of 8.96% over the last month, surpassing the Computer and Technology sector's gain of 5.49% and the S&P 500's gain of 2.12%.
Investors will be eagerly watching for the performance of Jabil in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.7, marking a 35% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $8.01 billion, indicating a 14.6% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $11.05 per share and revenue of $31.32 billion, indicating changes of +13.33% and +5.09%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Jabil. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Jabil holds a Zacks Rank of #3 (Hold).
Looking at valuation, Jabil is presently trading at a Forward P/E ratio of 19.94. For comparison, its industry has an average Forward P/E of 20.08, which means Jabil is trading at a discount to the group.
It is also worth noting that JBL currently has a PEG ratio of 1.43. 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. The Electronics - Manufacturing Services industry had an average PEG ratio of 1.37 as trading concluded yesterday.
The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 96, finds itself in the top 39% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Jabil, Inc. (JBL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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