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Jabil Circuit (JBL) earnings: what to expect

Royston Roche | 11:35 am ET, 15 Dec 2018

Jabil Circuit, Inc. (JBL) shares are trading at $21.84, down -2% on Friday. The company is announcing its quarterly earnings results on Monday before the market opens. What's driving Jabil's stock price? What's JBL stock price forecast?

Jabil Circuit provides electronic manufacturing services. The stock fell 17% in the past year.  It is now available at an attractive forward P/E ratio of 7, which presents a significant discount compared to Jabil's industry peers.

Investors are showing interest in the company because of its expertise in automation and continuous flow manufacturing. On the other hand, a few bearish investors worry about lower margins going forward. Last quarter’s revenue rose 15% to $5.77 billion and earnings per share came at $0.70 compared to $0.64 for the same period last year.

First-quarter fiscal year 2019 results will be released after market close on December 18, 2018.  Analysts expect the company to earn $0.87 per share on revenue of $6.10 billion. The company beat analysts’ estimates in the previous four quarters.

What is the sentiment towards the JBL stock? Our technical analysis shows that:

  • The stock short-term sentiment (next 30 days) is trending positive;
  • The mid-term sentiment (3-6 months) is trending negative;
  • The long-term sentiment (9-12 months) is trending negative. 

Over the last month, Jabil Circuit, Inc. (JBL) returned -6.39%.

Jabil Circuit, Inc. (JBL) forward P/E ratio is 7.48.

Jabil Circuit, Inc. (JBL) average analyst price target ($32.33) is 32.17% above its current price ($24.46).

For the latest price and information on Jabil Circuit, Inc., please visit Finstead and search for "JBL price" or "JBL news".

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


Jabil (JBL) stock is down: why?

Carla Olson | 1:31 pm ET, 25 Sep 2018

Jabil Circuit, Inc. (JBL) shares are trading at $27.26, down 9% today.  The company announced its Q4 quarterly earnings results on Tuesday before market opening-- Q4 results beat estimates with a 15% year-over-year revenue growth.  However, the stock is down.  What's driving JBL stock price?

Jabil is a leading contract manufacturing company. The stock has yielded a 12% return in 2018. Looking at the fundamental analysis, it's worth pointing that the stock may be cheap--JBL forward P/E ratio is only 9.97.

JBL stock has been getting a lot of interest lately because of the company's focus on serving factory automation and robotics markets. On the other hand, certain investors worry about the falling cash flow due to higher working capital requirements. 

Heavy trading of the stock following the earnings beat for its fiscal fourth quarter of the year might be the cause of the decline.  Margin and profit concerns are weighing heavily on Jabil's shares today--and investors are still wondering whether Jabil is becoming less dependent on Apple (AAPL) and other big clients.  Even though the stock is down 9% today,  it is still up 12% year-to-date.

What is the sentiment towards the JBL stock? Our technical analysis shows that:

  • The stock short-term sentiment (next 30 days) is positive;
  • The mid-term sentiment (3-6 months) is positive;
  • The long-term sentiment (9-12 months) is trending positive. 

Over the last month, Jabil Circuit, Inc. (JBL) returned +5.53%.

Jabil Circuit, Inc. (JBL) forward P/E ratio is 9.97, and it's low compared to its industry peers' P/E ratios.

Jabil Circuit, Inc. (JBL) average analyst price target ($33.20) is 13.7% above its current price ($29.20).

For the latest price and information on Jabil Circuit, Inc., please visit Finstead and search for "JBL price" or "JBL news".

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


Jabil Circuit, Inc. (JBL) Buy or Sell Stock Guide

Updated at: 5:54 pm ET, 24 Dec 2018

The analysis below may be helpful to you if you have any of the following questions about JBL stock:

  • Is JBL a buy or a sell?
  • Should I sell or hold JBL stock today?
  • Is JBL a good buy / a good investment?
  • What are JBL analyst opinions, recommendations, ratings?

Here are JBL stock buy reasons/signals:

1. Jabil should benefit from broad industry tailwinds such as mobility, cloud, and big data.

2. The Internet of Things should provide further growth opportunities for Jabil.

3. Supply chain software should be a lucrative niche for Jabil to expand in.

4. JBL quarterly revenue growth was 14.90%, higher than the industry and sector average revenue growth (6.63% and 5.17%, respectively).

5. JBL forward dividend yield is 1.40%, higher than the industry (0.35%) and sector (0.25%) forward dividend yields.

6. JBL forward P/E ratio is 6.52, and it’s low compared to its industry peers’ P/E ratios.

7. JBL Price/Sales ratio is 0.16, and it’s low compared to its industry peers’ P/S ratios.

8. JBL PEG ratio (P/E adjusted for growth) is 0.62, and it’s low compared to its industry peers’ PEG ratios.

9. JBL average analyst rating is Buy.

10. JBL average analyst price target ($32.33) is above its current price ($23.03).

Here are JBL stock sell reasons/signals:

1. Jabil derives a significant portion of revenue from the production of Apple’s iPhones, for better or worse. It would be a devastating blow to Jabil if it were to ever lose all of Apple’s iPhone business.

2. Jabil’s exposure to cyclical markets makes its revenue and margins susceptible to economic downturns.

3. Jabil’s competitors are also expanding their own value-added services capabilities, inhibiting Jabil’s attempts to differentiate itself.

4. JBL profitability is declining. The YoY profit margin change was -0.29pp.

5. JBL short share of float is 3.52%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

6. JBL short interest (days to cover the shorts) ratio is 3.66. The stock garners more short interest than the average industry, sector or S&P 500 stock.

What are your thoughts on JBL?

If you liked this analysis, check out Buy or Sell Stock Guides for other stocks.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


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