Jabil stock dips stood out in an otherwise positive session, with shares of the electronics manufacturer falling 4.84% to close at $258.56. The decline came as the S&P 500 gained 1.58% for the day. The Dow Jones Industrial Average rose 3.03%, and the tech-focused Nasdaq Composite added 1.44%.
A Rough Month for Jabil
The latest drop extends a difficult stretch for Jabil. Over the past month, the stock has lost 12.13%. During the same period, the Computer and Technology sector declined 12.04%, while the S&P 500 slipped 1.97%. Jabil’s recent performance has therefore trailed both its sector and the broader market.
Earnings Outlook Remains Bright
Investors are turning their attention to Jabil’s upcoming earnings report. Analysts expect earnings of $4.10 per share, which would represent year-over-year growth of 43.86%. Revenue is projected at $11.03 billion, a 32.76% increase from the same quarter last year.
For the full year, the consensus estimate calls for earnings of $17.61 per share and revenue of $44.62 billion. Those figures imply growth of 34.53% and 24.11%, respectively, compared with the prior year.
Analyst Estimates and Zacks Rank
Recent changes in analyst estimates can offer clues about short-term business trends. Positive revisions often signal confidence in a company’s performance and profit potential. Empirical research has shown a direct correlation between estimate revisions and impending stock price moves.
The Zacks Rank model incorporates these estimate changes into a practical rating system that ranges from #1 (Strong Buy) to #5 (Strong Sell). Over the past 30 days, the consensus EPS projection for Jabil has remained unchanged. Jabil currently holds a Zacks Rank of #1 (Strong Buy).
Valuation Metrics
Jabil’s Forward P/E ratio stands at 15.43. The average Forward P/E for its industry is 20.99, suggesting the stock is trading at a discount relative to peers. The company also has a PEG ratio of 0.77. Unlike the P/E ratio, the PEG ratio accounts for expected earnings growth. As of the previous day’s close, the Electronics – Manufacturing Services industry had an average PEG ratio of 0.72.
Industry Strength
The Electronics – Manufacturing Services industry is part of the Computer and Technology sector. It currently carries a Zacks Industry Rank of 8, placing it in the top 4% of more than 250 industries. The Zacks Industry Rank measures the average Zacks Rank of individual stocks within an industry group. Research indicates that the top 50% of rated industries outperform the bottom half by a factor of 2 to 1.