In the latest trading session, Jabil (JBL) closed at $219.26, marking a +2.6% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.54%. Meanwhile, the Dow gained 0.81%, and the Nasdaq, a tech-heavy index, added 2.27%.
Coming into today, shares of the electronics manufacturer had gained 10.16% in the past month. In that same time, the Computer and Technology sector gained 1.22%, while the S&P 500 gained 0.29%.
Market participants will be closely following the financial results of Jabil in its upcoming release. The company is expected to report EPS of $2.7, up 35% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $8.01 billion, indicating a 14.6% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $11.05 per share and a revenue of $31.32 billion, demonstrating changes of +13.33% and +5.09%, respectively, from the preceding year.
Any recent changes to analyst estimates for Jabil should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Jabil possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Jabil is presently trading at a Forward P/E ratio of 19.34. This represents a premium compared to its industry average Forward P/E of 19.24.
We can also see that JBL currently has a PEG ratio of 1.39. 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. Electronics - Manufacturing Services stocks are, on average, holding a PEG ratio of 1.05 based on yesterday's closing prices.
The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 5, this industry ranks in the top 3% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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