Shares of Jabil (JBL) have been strong performers lately, with the stock up 19.5% over the past month. The stock hit a new 52-week high of $303.74 in the previous session. Jabil has gained 31.4% since the start of the year compared to the -1.2% move for the Zacks Computer and Technology sector and the 23.3% return for the Zacks Electronics - Manufacturing Services industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on March 18, 2026, Jabil reported EPS of $2.69 versus consensus estimate of $2.54.
For the current fiscal year, Jabil is expected to post earnings of $12.3 per share on $34.02 in revenues. This represents a 26.15% change in EPS on a 14.15% change in revenues. For the next fiscal year, the company is expected to earn $14.35 per share on $37.2 in revenues. This represents a year-over-year change of 16.67% and 9.35%, respectively.
Valuation Metrics
Though Jabil has recently hit a 52-week high, what is next for Jabil? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Jabil has a Value Score of B. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 24.4X current fiscal year EPS estimates, which is not in-line with the peer industry average of 26.9X. On a trailing cash flow basis, the stock currently trades at 19.4X versus its peer group's average of 19.5X. Additionally, the stock has a PEG ratio of 1.43. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Jabil currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Jabil meets the list of requirements. Thus, it seems as though Jabil shares could have potential in the weeks and months to come.
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Jabil, Inc. (JBL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).