Jabil (JBL) outpaces stock market gains: what you need to know

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Jabil (JBL) closed at $62.24 last trading session, marking a +1.29% move from the previous day. The change outpaced the S&P 500’s 0.31% gain on the day. Meanwhile, the Dow Jones gained 0.05% and the Nasdaq, a technology-heavy index, added 0.14%.

As of today, shares of the electronics maker have gained 5.78% over the past month. Meanwhile, the IT & Technology sector lost 3.62%, while the S&P 500 lost 1.38%.

Wall Street will be looking for positivity from Jabil as its next earnings release date approaches. That is expected to be June 16, 2022. In this report, analysts expect Jabil to post earnings of $1.62 per share. This would mark a year-over-year growth of 24.62%. Meanwhile, our latest consensus estimate calls for revenue of $8.21 billion, up 13.74% from the prior year quarter.

For the full year, our Zacks consensus estimates call for earnings of $7.25 per share and revenue of $32.61 billion, which would represent swings of +29.23% and +11, 34%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Jabil. Recent revisions tend to reflect the latest short-term trading trends. With this in mind, we can view positive estimate revisions as a sign of optimism about the company’s business prospects.

Research indicates that these revisions to estimates are directly correlated to near-term stock price dynamics. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes into account these estimation changes and provides a clear and actionable scoring model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive track record of outperformance verified by external audits, with #1 stocks generating an average annual return of +25% since 1988 Over the past month, the Zacks Consensus EPS estimate has remained flat. Jabil currently sports a Zacks rank of #3 (Hold).

Investors should also note Jabil’s current valuation metrics, including its forward P/E ratio of 8.48. This represents a discount to the average PER of its sector of 9.2.

Meanwhile, JBL’s PEG ratio is currently 0.71. This popular measure is similar to the widely known P/E ratio, except that the PEG ratio also takes into account the company’s expected earnings growth rate. The Electronics Industry – Manufacturing Services currently had an average PEG ratio of 0.71 at yesterday’s close.

The Electronics – Manufacturing Services industry is part of the Computer and Technology sector. This industry currently has a Zacks industry ranking of 23, which places it in the top 10% of over 250 industries.

The Zacks Industry Ranking assesses the strength of our industry groups by measuring the average Zacks Ranking of 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.

Be sure to use Zacks.com to track all of these stock movement metrics, and more, in future trading sessions.

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