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Are Investors Undervaluing Jabil (JBL) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is Jabil (JBL - Free Report) . JBL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 14.65 right now. For comparison, its industry sports an average P/E of 15.66. JBL's Forward P/E has been as high as 18.57 and as low as 10.72, with a median of 13.85, all within the past year.

Investors should also note that JBL holds a PEG ratio of 1.17. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. JBL's industry currently sports an average PEG of 1.22. Within the past year, JBL's PEG has been as high as 2.17 and as low as 0.96, with a median of 1.36.

Finally, investors will want to recognize that JBL has a P/CF ratio of 8.12. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 9.75. Over the past 52 weeks, JBL's P/CF has been as high as 10.05 and as low as 5.56, with a median of 6.98.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Jabil is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, JBL feels like a great value stock at the moment.


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