Jabil (JBL) Dips More Than Broader Markets: What You Should Know
Jabil (JBL) closed at $57.20 in the latest trading session, marking a -1.99% move from the prior day. This change lagged the S&P 500's 1.84% loss on the day. At the same time, the Dow lost 1.38%, and the tech-heavy Nasdaq lost 0.38%.
Coming into today, shares of the electronics manufacturer had lost 3.02% in the past month. In that same time, the Computer and Technology sector lost 3.8%, while the S&P 500 lost 1.96%.
Wall Street will be looking for positivity from Jabil as it approaches its next earnings report date. In that report, analysts expect Jabil to post earnings of $1.47 per share. This would mark year-over-year growth of 15.75%. Our most recent consensus estimate is calling for quarterly revenue of $7.41 billion, up 8.59% from the year-ago period.
JBL's full-year Zacks Consensus Estimates are calling for earnings of $6.58 per share and revenue of $31.83 billion. These results would represent year-over-year changes of +17.29% and +8.7%, respectively.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Jabil currently has a Zacks Rank of #3 (Hold).
Investors should also note Jabil's current valuation metrics, including its Forward P/E ratio of 8.87. Its industry sports an average Forward P/E of 9.19, so we one might conclude that Jabil is trading at a discount comparatively.
Also, we should mention that JBL has a PEG ratio of 0.74. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Electronics - Manufacturing Services industry currently had an average PEG ratio of 0.74 as of yesterday's close.
The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 194, putting it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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