At last close, Jabil (JBL) reached $107.34, moving -0.24% from the previous day. This change was less than the S&P 500’s daily loss of 0.6%. Meanwhile, the Dow lost 0.39% and the Nasdaq, a tech-heavy index, lost 1.12%.
The electronics maker’s shares fell 1.6 percent last month, failing to keep pace with the computer and technology sector’s 2.97 percent gain and the S&P 500’s 3.15 percent gain.
Market participants will be closely monitoring Jabil’s financial results in the upcoming release. The company is expected to report earnings per share of $2.24, down 8.57% from the same quarter last year. Meanwhile, our current consensus estimate is calling for revenue of $6.6 billion, down 21.97% from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.42 per share and revenue of $28.52 billion, representing changes of -2.43% and -17.82%, respectively, from the prior year.
It is also important to note recent changes in analyst estimates for Jabil. These recent adjustments often reflect changing dynamics in near-term business patterns. Therefore, positive estimate revisions convey analysts’ confidence in the company’s business performance and earnings potential.
Empirical research shows that these estimate changes are directly related to upcoming stock price movements. To capitalize on this, we have developed the Zacks Rank, a quantitative model that takes these estimate changes into account and provides a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell) and has a proven, outside-audited track record of success, with #1 stocks returning an average of +25% annually since 1988. Over the past 30 days, our consensus EPS projection remained stagnant. Currently, Jabil has a Zacks Rank of #4 (Sell).
Investors should also consider Jabil’s current valuation metrics, including its forward P/E ratio of 12.78. For comparison, the industry average is 13.47, meaning Jabil is trading at a discount to the group.
Meanwhile, JBL’s PEG ratio currently stands at 1.79. The PEG ratio is similar to the commonly used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. The Electronics Manufacturing Services industry had an average PEG ratio of 1.66 as of yesterday’s close.
The Electronics – Manufacturing Services industry is part of the Computer & Technology sector. Currently, this industry has a Zacks Industry Rank of 183, putting it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
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Jabil, Inc. (JBL): Free Stock Analysis Report
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