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Jabil (JBL) Beats Stock Market Upswing: What Investors Need to Know

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The latest trading session saw Jabil (JBL - Free Report) ending at $162.64, denoting a +1.03% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily gain of 0.53%. Elsewhere, the Dow gained 0.38%, while the tech-heavy Nasdaq added 0.25%.

Prior to today's trading, shares of the electronics manufacturer had gained 11.87% over the past month. This has outpaced the Computer and Technology sector's loss of 0.75% and the S&P 500's gain of 1.24% in that time.

Market participants will be closely following the financial results of Jabil in its upcoming release. The company's earnings per share (EPS) are projected to be $1.81, reflecting a 7.74% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.41 billion, indicating a 5.25% decrease compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.78 per share and revenue of $27.35 billion. These totals would mark changes of +3.42% and -5.31%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Jabil. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.33% increase. Jabil is holding a Zacks Rank of #3 (Hold) right now.

In the context of valuation, Jabil is at present trading with a Forward P/E ratio of 18.34. This represents a discount compared to its industry's average Forward P/E of 19.67.

We can additionally observe that JBL currently boasts a PEG ratio of 1.47. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Electronics - Manufacturing Services industry held an average PEG ratio of 1.31.

The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 41, this industry ranks in the top 17% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow JBL in the coming trading sessions, be sure to utilize Zacks.com.


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