Is Jabil (JBL) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Jabil (JBL). JBL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 10.01, while its industry has an average P/E of 10.93. JBL's Forward P/E has been as high as 13.65 and as low as 7.72, with a median of 9.64, all within the past year.
We also note that JBL holds a PEG ratio of 0.83. 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. JBL's industry currently sports an average PEG of 0.97. Over the past 52 weeks, JBL's PEG has been as high as 1.14 and as low as 0.64, with a median of 0.80.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. JBL has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.36.
Finally, investors will want to recognize that JBL has a P/CF ratio of 6.31. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 7.78. Over the past 52 weeks, JBL's P/CF has been as high as 7.31 and as low as 5.45, with a median of 6.38.
Value investors will likely look at more than just these metrics, but the above data helps show that Jabil is likely undervalued currently. And when considering the strength of its earnings outlook, JBL sticks out at as one of the market's strongest value stocks.
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