In the latest trading session, Jabil (JBL) closed at $218.56, marking a -2.07% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 1.6%. Meanwhile, the Dow experienced a drop of 1.23%, and the technology-dominated Nasdaq saw a decrease of 2.24%.
Heading into today, shares of the electronics manufacturer had lost 1.26% over the past month, lagging the Computer and Technology sector's gain of 4.45% and the S&P 500's gain of 2.25%.
Market participants will be closely following the financial results of Jabil in its upcoming release. The company's upcoming EPS is projected at $2.92, signifying a 26.96% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $7.6 billion, reflecting a 9.17% rise from the equivalent quarter last year.
JBL's full-year Zacks Consensus Estimates are calling for earnings of $9.39 per share and revenue of $29.15 billion. These results would represent year-over-year changes of +10.6% and +0.93%, respectively.
Any recent changes to analyst estimates for Jabil should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.21% higher. Currently, Jabil is carrying a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Jabil is currently being traded at a Forward P/E ratio of 23.78. This valuation marks a premium compared to its industry average Forward P/E of 21.71.
It's also important to note that JBL currently trades at a PEG ratio of 1.44. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Electronics - Manufacturing Services industry held an average PEG ratio of 1.44.
The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 9, which puts it in the top 4% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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.
