U.S. Markets closed

Jabil (JBL) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

In the latest trading session, Jabil (JBL) closed at $39.28, marking a +1.66% move from the previous day. This change outpaced the S&P 500's 0.75% gain on the day. At the same time, the Dow added 0.69%, and the tech-heavy Nasdaq gained 1.32%.

Prior to today's trading, shares of the electronics manufacturer had gained 6.01% over the past month. This has outpaced the Computer and Technology sector's gain of 5.59% and the S&P 500's gain of 3.42% in that time.

JBL will be looking to display strength as it nears its next earnings release. In that report, analysts expect JBL to post earnings of $0.94 per share. This would mark year-over-year growth of 4.44%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.96 billion, up 6.93% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.43 per share and revenue of $25.96 billion. These totals would mark changes of +15.1% and +2.67%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for JBL. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. JBL is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that JBL has a Forward P/E ratio of 11.32 right now. Its industry sports an average Forward P/E of 13.26, so we one might conclude that JBL is trading at a discount comparatively.

Also, we should mention that JBL has a PEG ratio of 0.94. 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 Electronics - Manufacturing Services was holding an average PEG ratio of 0.94 at yesterday's closing price.

The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 104, putting it in the top 41% 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.

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


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Jabil, Inc. (JBL) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.