In the latest close session, Jabil (JBL) was up +1.75% at $224.34. The stock exceeded the S&P 500, which registered a gain of 0.78% for the day. Meanwhile, the Dow experienced a rise of 0.47%, and the technology-dominated Nasdaq saw an increase of 0.98%.
Prior to today's trading, shares of the electronics manufacturer had lost 0.21% lagged the Computer and Technology sector's gain of 5.34% and the S&P 500's gain of 1.86%.
Market participants will be closely following the financial results of Jabil in its upcoming release. The company is forecasted to report an EPS of $2.92, showcasing a 26.96% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $7.6 billion, up 9.17% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.39 per share and revenue of $29.15 billion, indicating changes of +10.6% and +0.93%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Jabil. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 shifted 0.54% upward. Jabil is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Jabil's current valuation metrics, including its Forward P/E ratio of 23.49. This expresses a premium compared to the average Forward P/E of 21.77 of its industry.
We can also see that JBL currently has a PEG ratio of 1.42. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Electronics – Manufacturing Services industry currently had an average PEG ratio of 1.45 as of yesterday's close.
The Electronics – Manufacturing Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 11, which puts it in the top 5% of all 250+ industries.
