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Jabil (JBL) Dips More Than Broader Market: What You Should Know

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The latest trading session saw Jabil (JBL - Free Report) ending at $137.33, denoting a -0.84% adjustment from its last day's close. This change lagged the S&P 500's daily loss of 0.6%. On the other hand, the Dow registered a loss of 0.17%, and the technology-centric Nasdaq decreased by 0.92%.

Shares of the electronics manufacturer have appreciated by 10.45% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.1% and the S&P 500's gain of 3.56%.

Market participants will be closely following the financial results of Jabil in its upcoming release. The company's upcoming EPS is projected at $1.94, signifying a 3.19% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.91 billion, indicating a 15.08% decrease compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $9.11 per share and a revenue of $30.61 billion, demonstrating changes of +5.56% and -11.78%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Jabil. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Jabil is currently a Zacks Rank #3 (Hold).

Looking at valuation, Jabil is presently trading at a Forward P/E ratio of 15.21. This represents a premium compared to its industry's average Forward P/E of 14.45.

One should further note that JBL currently holds a PEG ratio of 1.27. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Electronics - Manufacturing Services industry held an average PEG ratio of 1.04.

The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 223, positioning it in the bottom 12% 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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