Jabil Shares lunge After Narrowly Beating Earnings Guidance

JBL investors were likely spooked this afternoon by Barrons's report: "Contract electronics manufacturer Jabil posted modestly better-than-expected results for the company's latest quarter, along with guidance that was slightly ahead of Street estimates. But it seems clear investors were hoping for a more decisive beat in the period." For more coverage, read the full article here. On the back of this news, Jabil sank -4.71% to a price of $76.55. Are the markets overreacting?

Jabil Inc. provides global manufacturing solutions and services. The company belongs to the Technology sector, which has an average price to earnings (P/E) ratio of 27.16 and an average price to book (P/B) ratio of 6.23. In contrast, Jabil has a trailing 12 month P/E ratio of 11.41 and a P/B ratio of 3.976.

Jabil has moved 31.87% over the last year compared to -11.78% for the S&P 500 -- a difference of 43.65%. Jabil has a 52 week high of $85.7 and a 52 week low of $48.63. At today's price of $76.55 per share, Jabil is -14.95% away from its target price of $90.0, and on average, analysts give the stock a rating of buy. 2% of the company's shares are linked to short positions, and 92% of the shares are owned by institutional investors.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.