Jabil Inc.’s (NYSE:JBL) Share Price Matching Investor Opinion
With a price-to-earnings (or “P/E”) ratio of 27.9x Jabil Inc. (NYSE:JBL) may be sending very bearish signals at the moment, given that almost half of all companies in the United States have P/E ratios under 16x and even P/E’s lower than 10x are not unusual. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly elevated P/E.
While the market has experienced earnings growth lately, Jabil’s earnings have gone into reverse gear, which is not great. It might be that many expect the dour earnings performance to recover substantially, which has kept the P/E from…
