In the latest market close, Jabil (JBL) reached $146.92, with a +0.54% movement compared to the previous day. The stock lagged the S&P 500's daily gain of 0.74%. Meanwhile, the Dow experienced a rise of 0.05%, and the technology-dominated Nasdaq saw an increase of 1.26%.
Prior to today's trading, shares of the electronics manufacturer had gained 4.83% over the past month. This has outpaced the Computer and Technology sector's loss of 6.23% and the S&P 500's loss of 4.77% in that time.
The upcoming earnings release of Jabil will be of great interest to investors. On that day, Jabil is projected to report earnings of $2.28 per share, which would represent year-over-year growth of 20.63%. In the meantime, our current consensus estimate forecasts the revenue to be $6.98 billion, indicating a 3.18% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.93 per share and revenue of $27.82 billion, which would represent changes of +5.18% and -3.68%, respectively, from the prior year.
Any recent changes to analyst estimates for Jabil should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.55% fall in the Zacks Consensus EPS estimate. Jabil is currently a Zacks Rank #3 (Hold).
With respect to valuation, Jabil is currently being traded at a Forward P/E ratio of 16.36. This valuation marks a discount compared to its industry's average Forward P/E of 17.27.
Also, we should mention that JBL has a PEG ratio of 1.31. 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. The average PEG ratio for the Electronics - Manufacturing Services industry stood at 1.16 at the close of the market yesterday.
The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 90, this industry ranks in the top 37% of all industries, numbering over 250.
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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