Jabil (JBL) Registers a Bigger Fall Than the Market: Important Facts to Note

In the latest close session, Jabil (JBL) was down 1.73% at $332.88. The stock fell short of the S&P 500, which registered a loss of 0.67% for the day. On the other hand, the Dow registered a loss of 0.65%, and the technology-centric Nasdaq decreased by 0.84%. Prior to today's trading, shares of the electronics manufacturer had gained 2.56% lagged the Computer and Technology sector's gain of 9.44% and the S&P 500's gain of 4%.Analysts and investors alike will be keeping a close eye on the performance of Jabil in its upcoming earnings disclosure. The company is expected to report EPS of $3.08, up 20.78% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.53 billion, up 8.95% from the year-ago period. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.3 per share and revenue of $34.02 billion. These totals would mark changes of +26.15% and +14.15%, respectively, from last year. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Jabil. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Jabil is holding a Zacks Rank of #3 (Hold) right now. In terms of valuation, Jabil is presently being traded at a Forward P/E ratio of 27.55. For comparison, its industry has an average Forward P/E of 29.61, which means Jabil is trading at a discount to the group. One should further note that JBL currently holds a PEG ratio of 1.61. 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. The average PEG ratio for the Electronics - Manufacturing Services industry stood at 0.75 at the close of the market yesterday. The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 25% of all 250+ industries. The Zacks Industry Rank is ordered 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. Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions. Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.See Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks