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Jabil (JBL) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Jabil (JBL - Free Report) closed at $37.04, marking a +0.9% move from the previous day. This move outpaced the S&P 500's daily gain of 0.56%. At the same time, the Dow added 0.49%, and the tech-heavy Nasdaq gained 1.01%.

Prior to today's trading, shares of the electronics manufacturer had gained 3.82% over the past month. This has outpaced the Computer and Technology sector's gain of 1.92% and the S&P 500's gain of 1.38% in that time.

Investors will be hoping for strength from JBL as it approaches its next earnings release. On that day, JBL is projected to report earnings of $0.94 per share, which would represent year-over-year growth of 4.44%. Meanwhile, our latest consensus estimate is calling for revenue of $6.96 billion, up 6.93% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.43 per share and revenue of $25.96 billion, which would represent changes of +15.1% and +2.67%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for JBL. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 11.41% lower within the past month. JBL currently has a Zacks Rank of #3 (Hold).

Investors should also note JBL's current valuation metrics, including its Forward P/E ratio of 10.69. This valuation marks a discount compared to its industry's average Forward P/E of 11.78.

Investors should also note that JBL has a PEG ratio of 0.89 right now. 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. The Electronics - Manufacturing Services industry currently had an average PEG ratio of 0.89 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 31, which puts it in the top 13% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow JBL in the coming trading sessions, be sure to utilize Zacks.com.


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