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Jabil (JBL) Gains But Lags Market: What You Should Know

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Jabil (JBL - Free Report) ended the recent trading session at $124.84, demonstrating a +0.04% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.16%. Meanwhile, the Dow lost 0.37%, and the Nasdaq, a tech-heavy index, added 0.78%.

Coming into today, shares of the electronics manufacturer had gained 4.14% in the past month. In that same time, the Computer and Technology sector gained 1.87%, while the S&P 500 gained 1.67%.

The investment community will be paying close attention to the earnings performance of Jabil in its upcoming release. It is anticipated that the company will report an EPS of $2.04, marking a 21.54% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $6.6 billion, down 21.29% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.64 per share and a revenue of $27.01 billion, signifying shifts of +1.77% and -6.48%, respectively, from the last year.

Any recent changes to analyst estimates for Jabil should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Jabil is currently sporting a Zacks Rank of #5 (Strong Sell).

From a valuation perspective, Jabil is currently exchanging hands at a Forward P/E ratio of 14.45. Its industry sports an average Forward P/E of 16.83, so one might conclude that Jabil is trading at a discount comparatively.

We can additionally observe that JBL currently boasts a PEG ratio of 1.34. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Electronics - Manufacturing Services was holding an average PEG ratio of 1.32 at yesterday's closing price.

The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 179, placing it within the bottom 29% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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