Jabil (JBL) closed the last trading day at $106.35, down 0.68% from the previous trading session. The stock’s performance lagged the S&P 500’s 0.2% gain on the day. Meanwhile, the Dow gained 0.24% and the Nasdaq, a tech-heavy index, gained 0.21%.

To date, shares of the electronics maker had lost 4.58% over the past month. During the same period, the Computer and Technology sector lost 5.85%, while the S&P 500 lost 1.49%.

Market participants will be closely watching Jabil’s financial results in the upcoming release. The company is expected to report earnings per share of $2.24, down 8.57% from the year-ago quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.6 billion, down 21.97% from the year-ago quarter.

For the full year, analysts expect earnings of $8.42 per share and revenue of $28.52 billion, according to Zacks Consensus Estimates. These figures would represent a year-over-year change of -2.43% and -17.82%, respectively.

Investors should also pay attention to any recent changes in analyst estimates for Jabil. Recent revisions typically reflect the latest near-term business trends. As a result, optimistic estimate changes suggest that analysts are becoming positive about the company’s business health and profitability.

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

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an admirable track record of superior performance, which is independently audited, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus estimate for earnings per share (EPS) remained stagnant. Jabil currently holds a Zacks Rank of #3 (Hold).

In terms of valuation, Jabil is currently trading at a P/E ratio of 12.72. The industry average is 14.43, so one could conclude that Jabil is trading at a comparative discount.

Meanwhile, JBL’s PEG ratio currently stands at 1.78. Similar to the generally accepted P/E ratio, the PEG ratio also takes into account the company’s forecasted earnings growth. Stocks in the electronics manufacturing services sector have an average PEG ratio of 1.67 based on yesterday’s closing prices.

The Electronics – Manufacturing Services industry is part of the Computer & Technology sector. Currently, this industry has a Zacks Industry Rank of 45, putting it in the top 18% of all 250+ industries.

The story continues

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 those groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all of these and other stock-influencing metrics during the upcoming trading sessions.

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