Jabil (JBL) closed the most recent trading day at $206.10, moving -4.43% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.59%. Elsewhere, the Dow gained 0.02%, while the tech-heavy Nasdaq lost 1.46%.
Prior to today's trading, shares of the electronics manufacturer had lost 3.38% lagged the Computer and Technology sector's gain of 3.91% and the S&P 500's gain of 2.49%.
The investment community will be closely monitoring the performance of Jabil in its forthcoming earnings report. The company's upcoming EPS is projected at $2.92, signifying a 26.96% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $7.6 billion, indicating a 9.17% growth compared to the corresponding quarter of the prior year.
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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Jabil. These revisions help to show the ever-changing nature of near-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 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Jabil boasts a Zacks Rank of #2 (Buy).
In terms of valuation, Jabil is presently being traded at a Forward P/E ratio of 22.98. Its industry sports an average Forward P/E of 21.38, so one might conclude that Jabil is trading at a premium comparatively.
One should further note that JBL currently holds a PEG ratio of 1.39. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Electronics – Manufacturing Services stocks are, on average, holding a PEG ratio of 1.42 based on yesterday's closing prices.
The Electronics – Manufacturing Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 10, positioning it in the top 5% of all 250+ industries.
