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Jabil (JBL) Gains But Lags Market: What You Should Know

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Jabil (JBL) closed at $62.77 in the latest trading session, marking a +0.85% move from the prior day. The stock lagged the S&P 500's daily gain of 0.95%. Elsewhere, the Dow gained 0.8%, while the tech-heavy Nasdaq lost 0.28%.

Coming into today, shares of the electronics manufacturer had gained 10.08% in the past month. In that same time, the Computer and Technology sector lost 0.21%, while the S&P 500 gained 0.1%.

Jabil will be looking to display strength as it nears its next earnings release, which is expected to be June 16, 2022. On that day, Jabil is projected to report earnings of $1.62 per share, which would represent year-over-year growth of 24.62%. Our most recent consensus estimate is calling for quarterly revenue of $8.21 billion, up 13.74% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.29 per share and revenue of $32.61 billion. These totals would mark changes of +29.95% and +11.34%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Jabil. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Jabil currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Jabil currently has a Forward P/E ratio of 8.54. Its industry sports an average Forward P/E of 9.28, so we one might conclude that Jabil is trading at a discount comparatively.

Also, we should mention that JBL has a PEG ratio of 0.71. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Electronics - Manufacturing Services stocks are, on average, holding a PEG ratio of 0.71 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 23, which puts it in the top 10% 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.

To follow JBL in the coming trading sessions, be sure to utilize Zacks.com.


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