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Jabil (JBL) Stock Falls Amid Market Uptick: What Investors Need to Know

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Jabil (JBL - Free Report) closed the most recent trading day at $135.52, moving -0.17% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.1% for the day. Meanwhile, the Dow gained 0.69%, and the Nasdaq, a tech-heavy index, added 0.06%.

Prior to today's trading, shares of the electronics manufacturer had gained 9.27% over the past month. This has outpaced the Computer and Technology sector's gain of 4.92% and the S&P 500's gain of 4.37% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Jabil in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.04, reflecting a 21.54% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.6 billion, down 21.29% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.64 per share and a revenue of $27.01 billion, representing changes of +1.77% and -6.48%, respectively, from the prior year.

Any recent changes to analyst estimates for Jabil should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Jabil boasts a Zacks Rank of #4 (Sell).

From a valuation perspective, Jabil is currently exchanging hands at a Forward P/E ratio of 15.72. For comparison, its industry has an average Forward P/E of 19.03, which means Jabil is trading at a discount to the group.

It is also worth noting that JBL currently has a PEG ratio of 1.45. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Electronics - Manufacturing Services industry had an average PEG ratio of 1.29 as trading concluded yesterday.

The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 12, this industry ranks in the top 5% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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