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Bull Of The Day: Jabil (JBL)

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Jabil (JBL - Free Report) is a Zacks Rank #1 (Strong Buy) that has a C for Value and a B for Growth. This company is a electronics manufacturer that has customers in the aerospace, automotive, defense and many more. Let’s learn more about why this stock is the Bull of the Day.

Description                                              

Jabil, Inc. engages in the provision of manufacturing services and solutions. It operates through the Electronics Manufacturing Services (EMS) and Diversified Manufacturing Services (DMS) segments. The EMS segment focuses on leveraging information technology, supply chain design and engineering, technologies largely centered on core electronics, utilizing a large-scale manufacturing infrastructure, and the ability to serve a broad range of end markets. The DMS segment offers engineering solutions with an emphasis on material sciences, machining, tooling, and molding of engineered plastic and metal parts. The company was founded by William E. Morean and James Golden in 1966 and is headquartered in St. Petersburg, FL.

Earnings History                                                         

When I look at a stock, the first thing I do is look to see if the company is beating the number.  This tells me right away where the market’s expectations have been for the company and how management has communicated to the market.  A stock that consistently beats has management communicating expectations to Wall Street that can be achieved.  That is what you want to see.

Jabil (JB) has topped the Zacks Consensus Estimate in each of the last four quarters. The company most recently posted EPS of $2.85 per share when the Zacks Consensus Estimate was calling for $2.72.  That 13 cent beat translates into a 4.8% positive earnings surprise.

Over the last four quarters the average positive surprise works out to be 8.3%.

Earnings Estimates Revisions

Earnings estimate revisions is what the Zacks Rank is all about. 

Estimates are moving higher for Jabil (JBL - Free Report) .

The current fiscal year 2026 has increased from $11.05 to $11.55 over the last 60 days.

Fiscal 2027 has increased from $13.08 to $13.41 over the same time period.

Valuation                                                                                                        

The valuation for Jabil (JBL - Free Report) is interesting given the growth prospects. Forward earnings multiple of 20x is a little high for a company is expected to see growth of 8% this year and 7% next year. The price to book comes in at a lofty 19x and that will keep the value minded investors far away from this stock. Price to sales is 0.83x, so the market is not placing much value on every incremental sales dollar generated.

Operating margins are thin, but improving from 3.1% to 3.3%and most recently to 3.4%. 


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