We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Companies built for the new economy should be investors’ bullish focus in these periods of elevated volatility, and the latest flood of fresh fundamentals from Q1 earnings reports has shed some light on some winners. It’s about time to add a next-generation industrial play to your portfolio mix as nations look to bring operations back home (economic independence through reversing globalization).
Jabil (JBL - Free Report) , a leading manufacturer of highly diversified new economy partners, is perfectly positioned for this onshoring push.
JBL’s incredible buoyancy amid the market’s latest volatility surge has illustrated a high level of bullish sentiment in the name.
Jabil has been exhibiting margin expanding growth throughout the pandemic, which is set to accelerate in the post-pandemic world as demand for its broad-based portfolio of future-focused international manufacturing operations allows it to take a controlling position amid the impending digital renaissance of the commencing 4th Industrial Revolution.
The acceleration of nationalization in the face of the Russia-Ukraine war, years of pandemic-fueled digital adaptation, JBL’s breakout above its 50-day and 200-day moving average, and increasingly bullish analysts’ estimates following a blowout earnings report in the back half of last week, JBL shares are a ripe new economy play for your future-focused portfolio.
JBL is a Zacks Rank #1 (Strong Buy) with every covering analyst calling the stock a strong buy today, with price targets centering tightly around $80 a share.
Let’s dive into this new economy investment opportunity.
Jabil’s Operations
Jabil is a multinational manufacturing giant that provides not only provides best-in-class manufacturing capabilities, but technical & design expertise, and top-notch sourcing/supply chain knowledge that would benefit any business amid this global resource shortage. This conglomerate operates across 100 locations in 30 different countries, with 260,000 employees (creating local jobs at each specialized site).
Jabil has been proving itself as a secular growth narrative for the past 5 years now, having generated year-over-year topline growth in the past 22 consecutive quarters (and expected to continue).
This company’s operations were seemingly unaffected by the pandemic’s wrath, as this exceptionally flexible manufacturer appears to have only benefited from the digitalizing tailwind that this devastating virus fortuitously generated.
Jabil’s highly diverse portfolio of manufacturing services has hedged its operations against most broader market risks with defined end-markets that have been split up into 2 segments.
Diversified Manufacturing: Healthcare & Packaging, Connected Devices, Mobility, and Auto & Transportation.
Electronic Manufacturing: 5G Wireless & Cloud, Industrial & Semiconductors, Digital Print & Retail, and Network & Storage.
These complementary segments have been reliably growing in a consistent margin expanding way, which points to a level of operational excellence that only a superior management team would be able to achieve.
The Valuation
After an abbreviated 10-week correction to kick off 2022, JBL is off to the races once again in the wake of its bid driving quarterly report in mid-March. Jabil easily beat analysts’ EPS estimates for the 8th successive quarter while providing bullish guidance for the current quarter.
JBL is trading at an investment ripe forward P/E of 7.7x, its lowest multiple since the depths of the pandemic sell-off two years ago.
This stock is also rocking a PEG (growth adjusted P/E) of 0.6x, representing a sizable discount from both JBL’s 5-year median and industry average, with anything below 1x signifying potential value.
The Chart
JBL has been an exceptionally steady next-gen industrial driver since begin of 2022, and has been generating a swelling alpha (relative to the S&P 500). JBL’s exceptional fiscal Q2 report (February quarter) released in mid-March gave this tech-juiced manufacturer a market edge that investors are yet to fully bake in.
JBL’s incredible resilience to the broader market’s selling pressures this month, trading in a fib-bound for the past month roughly between $55 & $60 per share (shown below). indicates just how much pent up bullish demand there are for these shares, and rightfully so at this firesale discount.
Image Source: TradingView
Jabil is not a sexy company or stock to trade for that matter, but at this valuation level coupled with its accelerating secular growth outlay, it represents a solid fundamentally fueled investment opportunity.
JBL shares haven’t traded this buoyantly since the peak of the Dotcom Bubble in September 2000, only this time the company has a proven track record of secular growth (topline expansion through pandemic) and is 7x cheaper from a P/E multiple-basis.
Final Thoughts
The US stock market is the safest place to hold your capital in this highly inflationary (rapidly devaluing cash) rising rate environment (weakening bond values), while earnings growth continues with strong economic demand remaining buoyant. Valuation multiples for many new normal stocks have finally fallen to equitable levels.
With intrinsic valuation modeled denominators (aka enterprise discount rates) now aligning with interest rate expectations (if not exceeding), while earnings estimates point to outsized growth in the quarters ahead, many recently discounted US stocks are looking ripe for the picking.
Jabil is built for this new highly adaptable and rapidly digitalizing economy. It’s time to consider adding JBL to your portfolio as a next-generation manufacturing play as analysts drive up estimates.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Bull Of The Day: Jabil (JBL)
Companies built for the new economy should be investors’ bullish focus in these periods of elevated volatility, and the latest flood of fresh fundamentals from Q1 earnings reports has shed some light on some winners. It’s about time to add a next-generation industrial play to your portfolio mix as nations look to bring operations back home (economic independence through reversing globalization).
Jabil (JBL - Free Report) , a leading manufacturer of highly diversified new economy partners, is perfectly positioned for this onshoring push.
JBL’s incredible buoyancy amid the market’s latest volatility surge has illustrated a high level of bullish sentiment in the name.
Jabil has been exhibiting margin expanding growth throughout the pandemic, which is set to accelerate in the post-pandemic world as demand for its broad-based portfolio of future-focused international manufacturing operations allows it to take a controlling position amid the impending digital renaissance of the commencing 4th Industrial Revolution.
The acceleration of nationalization in the face of the Russia-Ukraine war, years of pandemic-fueled digital adaptation, JBL’s breakout above its 50-day and 200-day moving average, and increasingly bullish analysts’ estimates following a blowout earnings report in the back half of last week, JBL shares are a ripe new economy play for your future-focused portfolio.
JBL is a Zacks Rank #1 (Strong Buy) with every covering analyst calling the stock a strong buy today, with price targets centering tightly around $80 a share.
Let’s dive into this new economy investment opportunity.
Jabil’s Operations
Jabil is a multinational manufacturing giant that provides not only provides best-in-class manufacturing capabilities, but technical & design expertise, and top-notch sourcing/supply chain knowledge that would benefit any business amid this global resource shortage. This conglomerate operates across 100 locations in 30 different countries, with 260,000 employees (creating local jobs at each specialized site).
Jabil has been proving itself as a secular growth narrative for the past 5 years now, having generated year-over-year topline growth in the past 22 consecutive quarters (and expected to continue).
This company’s operations were seemingly unaffected by the pandemic’s wrath, as this exceptionally flexible manufacturer appears to have only benefited from the digitalizing tailwind that this devastating virus fortuitously generated.
Jabil’s highly diverse portfolio of manufacturing services has hedged its operations against most broader market risks with defined end-markets that have been split up into 2 segments.
Diversified Manufacturing: Healthcare & Packaging, Connected Devices, Mobility, and Auto & Transportation.
Electronic Manufacturing: 5G Wireless & Cloud, Industrial & Semiconductors, Digital Print & Retail, and Network & Storage.
These complementary segments have been reliably growing in a consistent margin expanding way, which points to a level of operational excellence that only a superior management team would be able to achieve.
The Valuation
After an abbreviated 10-week correction to kick off 2022, JBL is off to the races once again in the wake of its bid driving quarterly report in mid-March. Jabil easily beat analysts’ EPS estimates for the 8th successive quarter while providing bullish guidance for the current quarter.
JBL is trading at an investment ripe forward P/E of 7.7x, its lowest multiple since the depths of the pandemic sell-off two years ago.
This stock is also rocking a PEG (growth adjusted P/E) of 0.6x, representing a sizable discount from both JBL’s 5-year median and industry average, with anything below 1x signifying potential value.
The Chart
JBL has been an exceptionally steady next-gen industrial driver since begin of 2022, and has been generating a swelling alpha (relative to the S&P 500). JBL’s exceptional fiscal Q2 report (February quarter) released in mid-March gave this tech-juiced manufacturer a market edge that investors are yet to fully bake in.
JBL’s incredible resilience to the broader market’s selling pressures this month, trading in a fib-bound for the past month roughly between $55 & $60 per share (shown below). indicates just how much pent up bullish demand there are for these shares, and rightfully so at this firesale discount.
Image Source: TradingView
Jabil is not a sexy company or stock to trade for that matter, but at this valuation level coupled with its accelerating secular growth outlay, it represents a solid fundamentally fueled investment opportunity.
JBL shares haven’t traded this buoyantly since the peak of the Dotcom Bubble in September 2000, only this time the company has a proven track record of secular growth (topline expansion through pandemic) and is 7x cheaper from a P/E multiple-basis.
Final Thoughts
The US stock market is the safest place to hold your capital in this highly inflationary (rapidly devaluing cash) rising rate environment (weakening bond values), while earnings growth continues with strong economic demand remaining buoyant. Valuation multiples for many new normal stocks have finally fallen to equitable levels.
With intrinsic valuation modeled denominators (aka enterprise discount rates) now aligning with interest rate expectations (if not exceeding), while earnings estimates point to outsized growth in the quarters ahead, many recently discounted US stocks are looking ripe for the picking.
Jabil is built for this new highly adaptable and rapidly digitalizing economy. It’s time to consider adding JBL to your portfolio as a next-generation manufacturing play as analysts drive up estimates.