Are Investors Undervaluing Jabil (JBL) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Jabil (JBL) is a stock many investors are watching right now. JBL is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.72. This compares to its industry's average Forward P/E of 11.86. Over the last 12 months, JBL's Forward P/E has been as high as 13.65 and as low as 5.04, with a median of 9.77.
We also note that JBL holds a PEG ratio of 0.73. 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. JBL's industry currently sports an average PEG of 0.94. Over the past 52 weeks, JBL's PEG has been as high as 1.14 and as low as 0.42, with a median of 0.81.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. 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 0.2. This compares to its industry's average P/S of 0.26.
These are just a handful of the figures considered in Jabil's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that JBL is an impressive value stock right now.
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