In the latest trading session, Jabil (JBL) closed at $219.26, marking a +2.6% move from the previous day. The stock outpaced the S&P 500’s daily gain of 1.54%. Meanwhile, the Dow gained 0.81%, and the Nasdaq, a tech-heavy index, added 2.27%.
Coming into today, shares of the electronics manufacturer had gained 10.16% in the past month. In that same time, the Computer and Technology sector gained 1.22%, while the S&P 500 gained 0.29%.
Market participants will be closely following the financial results of Jabil in its upcoming release. The company is expected to report EPS of $2.7, up 35% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $8.01 billion, indicating a 14.6% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $11.05 per share and a revenue of $31.32 billion, demonstrating changes of +13.33% and +5.09%, respectively, from the preceding year.
Any recent changes to analyst estimates for Jabil should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Jabil possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Jabil is presently trading at a Forward P/E ratio of 19.34. This represents a premium compared to its industry average Forward P/E of 19.24.
We can also see that JBL currently has a PEG ratio of 1.39. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. Electronics – Manufacturing Services stocks are, on average, holding a PEG ratio of 1.05 based on yesterday’s closing prices.
The Electronics – Manufacturing Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 5, this industry ranks in the top 3% of all industries, numbering over 250.