In the latest close session, Jabil (JBL) was up +1.79% at $344.67. The stock exceeded the S&P 500, which registered a loss of 0.18% for the day. On the other hand, the Dow registered a loss of 0.85%, and the technology-centric Nasdaq decreased by 0.06%.
Shares of the electronics manufacturer have appreciated by 4.12% over the course of the past month, outperforming the Computer and Technology sector's gain of 1.48%, and the S&P 500's gain of 3.33%.
The investment community will be closely monitoring the performance of Jabil in its forthcoming earnings report. The company is expected to report EPS of $4.05, up 23.1% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $9.61 billion, showing a 16.51% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $12.74 per share and a revenue of $34.97 billion, demonstrating changes of +30.67% and +17.33%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Jabil. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Jabil presently features a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Jabil has a Forward P/E ratio of 26.58 right now. For comparison, its industry has an average Forward P/E of 29.44, which means Jabil is trading at a discount to the group.
One should further note that JBL currently holds a PEG ratio of 0.93. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Electronics - Manufacturing Services industry stood at 0.77 at the close of the market yesterday.
The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 1, which puts it in the top 1% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
