Jabil (JBL) Advances But Underperforms Market: Key Facts

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In the latest market close, Jabil (JBL) reached $128.29, with a +0.02% movement compared to the previous day. This change lagged the S&P 500's 0.39% gain on the day. Elsewhere, the Dow saw a downswing of 0.13%, while the tech-heavy Nasdaq appreciated by 0.6%.

Heading into today, shares of the electronics manufacturer had gained 1.55% over the past month, outpacing the Computer and Technology sector's gain of 0.59% and the S&P 500's gain of 1.06% in that time.

Investors will be eagerly watching for the performance of Jabil in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.04, signifying a 21.54% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $6.6 billion, showing a 21.29% drop compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.64 per share and revenue of $27.01 billion, indicating changes of +1.77% and -6.48%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Jabil. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Jabil holds a Zacks Rank of #4 (Sell).

In the context of valuation, Jabil is at present trading with a Forward P/E ratio of 14.85. This signifies a discount in comparison to the average Forward P/E of 18.11 for its industry.

Investors should also note that JBL has a PEG ratio of 1.37 right now. 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 currently had an average PEG ratio of 1.22 as of yesterday's close.

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