Jabil (JBL) ended the recent trading session at $207.23, demonstrating a +1.59% change from the preceding day's closing price. This change outpaced the S&P 500's 0.69% gain on the day. Meanwhile, the Dow gained 0.67%, and the Nasdaq, a tech-heavy index, added 0.82%.
Coming into today, shares of the electronics manufacturer had lost 4.91% in the past month. In that same time, the Computer and Technology sector gained 0.07%, while the S&P 500 lost 0.31%.
Market participants will be closely following the financial results of Jabil in its upcoming release. The company is forecasted to report an EPS of $2.7, showcasing a 35% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.01 billion, up 14.6% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.05 per share and a revenue of $31.32 billion, indicating changes of +13.33% and +5.09%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Jabil. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Jabil currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Jabil is presently being traded at a Forward P/E ratio of 18.46. This represents a discount compared to its industry average Forward P/E of 18.75.
It is also worth noting that JBL currently has a PEG ratio of 1.33. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Electronics - Manufacturing Services industry held an average PEG ratio of 0.99.
The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 5, which puts it in the top 3% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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