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.
