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.
Jabil (JBL) Boosts Sustainable Packaging With Ecologic Buyout
Read MoreHide Full Article
Jabil (JBL - Free Report) recently announced the acquisition of Ecologic Brands, a California-based sustainable paper-based packaging solutions provider.
According to the deal, Ecologic’s team and operations will be integrated with Jabil’s Packaging Solutions division. Further, Jabil’s sustainable packaging product platform will operate under Ecologic’s name.
Rationale Behind the Acquisition
Ecologic’s acquisition gives Jabil access to the former’s commercially viable paper bottle technology, which was the world’s first breakthrough technology helping companies to shift from the environmentally harmful plastic packaging. The solution is powered by deep material expertise and innovative manufacturing processes.
The integration enables Jabil to provide paper-based packaging solutions to its consumer-packaged goods (CPG) customers. Consequently, this will help the company reduce plastic packaging, which bodes well for its sustainability goals and expands its sustainable packaging capabilities.
Moreover, Ecologic’s customers include major CPG companies, such as L’Oréal and Seventh Generation, which utilize its eco.bottle solution. The buyout further boosts Jabil’s existing customer base of CPG companies.
A Well-Diversified Commercial Portfolio Bodes Well
Jabil’s shares have gained 5.5% over the past year compared with the Zacks Electronics - Manufacturing Services industry’s growth of 0.8%.
The manufacturing solution provider’s consistent efforts to build a well-balanced portfolio of businesses with the end market and product diversification have been a major growth driver.
The company’s Electronics Manufacturing Services (EMS) segment includes digital print, retail, semi-cap, 5G wireless, cloud networking and storage businesses. Growth in this segment is largely aided by solid demand for the company’s 5G wireless and cloud computing services.
Additionally, strength in the Diversified Manufacturing Services (DMS) segment, which consists of its healthcare and packaging, mobility, connected devices, automotive, and transportation businesses is a key positive.
Notably, Jabil’s $5-billion healthcare and packaging solutions have witnessed strong adoption from healthcare, medical device and consumer packaged goods companies globally. Further, the company benefits from the growing traction in its mobility and connected devices business induced by pandemic-led remote working and learning environment.
Moreover, the expansion of Jabil’s sustainable packaging offerings with the recent acquisition of Ecologic bodes well for its DMS segment and is expected to drive top-line growth over the long haul.
Long-term earnings growth rate for NVIDIA, Micron and Mercury is currently pegged at 18.3%, 12.7%, and 8.1%, respectively.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Image: Bigstock
Jabil (JBL) Boosts Sustainable Packaging With Ecologic Buyout
Jabil (JBL - Free Report) recently announced the acquisition of Ecologic Brands, a California-based sustainable paper-based packaging solutions provider.
According to the deal, Ecologic’s team and operations will be integrated with Jabil’s Packaging Solutions division. Further, Jabil’s sustainable packaging product platform will operate under Ecologic’s name.
Rationale Behind the Acquisition
Ecologic’s acquisition gives Jabil access to the former’s commercially viable paper bottle technology, which was the world’s first breakthrough technology helping companies to shift from the environmentally harmful plastic packaging. The solution is powered by deep material expertise and innovative manufacturing processes.
The integration enables Jabil to provide paper-based packaging solutions to its consumer-packaged goods (CPG) customers. Consequently, this will help the company reduce plastic packaging, which bodes well for its sustainability goals and expands its sustainable packaging capabilities.
Jabil, Inc. Price and Consensus
Jabil, Inc. price-consensus-chart | Jabil, Inc. Quote
Moreover, Ecologic’s customers include major CPG companies, such as L’Oréal and Seventh Generation, which utilize its eco.bottle solution. The buyout further boosts Jabil’s existing customer base of CPG companies.
A Well-Diversified Commercial Portfolio Bodes Well
Jabil’s shares have gained 5.5% over the past year compared with the Zacks Electronics - Manufacturing Services industry’s growth of 0.8%.
The manufacturing solution provider’s consistent efforts to build a well-balanced portfolio of businesses with the end market and product diversification have been a major growth driver.
The company’s Electronics Manufacturing Services (EMS) segment includes digital print, retail, semi-cap, 5G wireless, cloud networking and storage businesses. Growth in this segment is largely aided by solid demand for the company’s 5G wireless and cloud computing services.
Additionally, strength in the Diversified Manufacturing Services (DMS) segment, which consists of its healthcare and packaging, mobility, connected devices, automotive, and transportation businesses is a key positive.
Notably, Jabil’s $5-billion healthcare and packaging solutions have witnessed strong adoption from healthcare, medical device and consumer packaged goods companies globally. Further, the company benefits from the growing traction in its mobility and connected devices business induced by pandemic-led remote working and learning environment.
Moreover, the expansion of Jabil’s sustainable packaging offerings with the recent acquisition of Ecologic bodes well for its DMS segment and is expected to drive top-line growth over the long haul.
Zacks Rank & Other Stocks to Consider
Jabil currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the broader technology sector are NVIDIA (NVDA - Free Report) , Micron (MU - Free Report) and Mercury (MRCY - Free Report) . All three stocks sport a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for NVIDIA, Micron and Mercury is currently pegged at 18.3%, 12.7%, and 8.1%, respectively.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>