Jabil (JBL) ended the recent trading session at $204.83, demonstrating a -2.4% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.64%. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq lost 1.15%.
Coming into today, shares of the electronics manufacturer had lost 5.96% in the past month. In that same time, the Computer and Technology sector gained 2.91%, while the S&P 500 gained 1.91%.
The upcoming earnings release of Jabil will be of great interest to investors. The company's earnings per share (EPS) are projected to be $2.92, reflecting a 26.96% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.6 billion, up 9.17% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.39 per share and a revenue of $29.15 billion, signifying shifts of +10.6% and +0.93%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Jabil. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Jabil is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Jabil is currently being traded at a Forward P/E ratio of 22.36. For comparison, its industry has an average Forward P/E of 21.23, which means Jabil is trading at a premium to the group.
It is also worth noting that JBL currently has a PEG ratio of 1.35. 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 Electronics – Manufacturing Services was holding an average PEG ratio of 1.42 at yesterday's closing price.
The Electronics – Manufacturing Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 16, putting it in the top 7% of all 250+ industries.
