Jabil (JBL) Gains But Lags Market: What You Should Know
In the latest trading session, Jabil (JBL) closed at $59.73, marking a +0.25% move from the previous day.
In the latest trading session, Jabil (JBL) closed at $59.73, marking a +0.25% move from the previous day. The stock lagged the S&P 500's daily gain of 0.85%.
Coming into today, shares of the electronics manufacturer had gained 4.64% in the past month. In that same time, the Computer and Technology sector gained 3.07%, while the S&P 500 gained 2.85%.
JBL will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.36, up 38.78% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.64 billion, up 4.6% from the prior-year quarter.
JBL's full-year Zacks Consensus Estimates are calling for earnings of $5.54 per share and revenue of $29.54 billion. These results would represent year-over-year changes of +91.03% and +8.34%, respectively.
It is also important to note the recent changes to analyst estimates for JBL. 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 company's business outlook.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. JBL currently has a Zacks Rank of #3 (Hold).
Digging into valuation, JBL currently has a Forward P/E ratio of 10.76. This represents a premium compared to its industry's average Forward P/E of 9.99.
It is also worth noting that JBL currently has a PEG ratio of 0.9. 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 0.77 based on yesterday's closing prices.
The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 81, which puts it in the top 32% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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