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Jabil (JBL) Gains As Market Dips: What You Should Know

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Jabil (JBL - Free Report) closed the most recent trading day at $39.20, moving +1.16% from the previous trading session. This change outpaced the S&P 500's 0.11% loss on the day. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, lost 0.07%.

Coming into today, shares of the electronics manufacturer had lost 2.12% in the past month. In that same time, the Computer and Technology sector gained 1.17%, while the S&P 500 gained 1.62%.

Investors will be hoping for strength from JBL as it approaches its next earnings release, which is expected to be December 17, 2019. In that report, analysts expect JBL to post earnings of $0.94 per share. This would mark 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.

JBL's full-year Zacks Consensus Estimates are calling for earnings of $3.43 per share and revenue of $25.96 billion. These results would represent year-over-year changes of +15.1% and +2.67%, respectively.

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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. JBL is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note JBL's current valuation metrics, including its Forward P/E ratio of 11.31. Its industry sports an average Forward P/E of 13.05, so we one might conclude that JBL is trading at a discount comparatively.

Meanwhile, JBL's PEG ratio is currently 0.94. 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. JBL's industry had an average PEG ratio of 0.94 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 97, which puts it in the top 39% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

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


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