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Why Jabil (JBL) Outpaced the Stock Market Today

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Jabil (JBL - Free Report) closed at $115.97 in the latest trading session, marking a +1.54% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 1.19%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 1.96%.

The electronics manufacturer's stock has dropped by 2.74% in the past month, falling short of the Computer and Technology sector's gain of 5.37% and the S&P 500's gain of 3.35%.

The upcoming earnings release of Jabil will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.90, reflecting a 4.52% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $6.51 billion, showing a 23.23% drop compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $8.41 per share and revenue of $28.49 billion, which would represent changes of -2.55% and -17.89%, respectively, from the prior year.

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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, Jabil possesses a Zacks Rank of #3 (Hold).

Investors should also note Jabil's current valuation metrics, including its Forward P/E ratio of 13.58. This valuation marks a discount compared to its industry's average Forward P/E of 14.74.

We can additionally observe that JBL currently boasts a PEG ratio of 1.32. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Electronics - Manufacturing Services industry currently had an average PEG ratio of 1.28 as of yesterday's close.

The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 49, finds itself in the top 20% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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