Jabil (JBL) closed at $91.58 in the latest trading session, marking a -0.75% move from the prior day. This move lagged the S&P 500's daily loss of 0.2%. Meanwhile, the Dow lost 0.59%, and the Nasdaq, a tech-heavy index, lost 1.54%.
Coming into today, shares of the electronics manufacturer had gained 19.41% in the past month. In that same time, the Computer and Technology sector gained 12.17%, while the S&P 500 gained 4.14%.
Jabil will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.88, up 9.3% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.16 billion, down 1.96% from the prior-year quarter.
JBL's full-year Zacks Consensus Estimates are calling for earnings of $8.36 per share and revenue of $34.5 billion. These results would represent year-over-year changes of +9.28% and +3.05%, respectively.
It is also important to note the recent changes to analyst estimates for Jabil. These revisions help to show the ever-changing nature of 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.35% lower. Jabil is currently a Zacks Rank #3 (Hold).
In terms of valuation, Jabil is currently trading at a Forward P/E ratio of 11.04. Its industry sports an average Forward P/E of 11.04, so we one might conclude that Jabil is trading at a no noticeable deviation comparatively.
Meanwhile, JBL's PEG ratio is currently 0.92. 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 0.92 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 122, which puts it in the top 49% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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