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Jabil (JBL) & EFFECT Photonics to Develop Coherent Modules

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Jabil Inc. (JBL - Free Report) has announced that its Photonics business unit and EFFECT Photonics have joined forces to develop next-generation coherent optical modules.

Jabil Photonics provides customized manufacturing and test solutions for optical communications products.

Headquartered in Eindhoven, Netherlands, EFFECT Photonics offers integrated optical communications products based on its Dense Wavelength Division Multiplexing (DWDM) optical System-on-Chip technology.

EFFECT Photonics will make available its System-on-Chip optical technology and Jabil will leverage its manufacturing coherent modules with extensive sourcing capabilities.

The modules enable network operators and hyperscalers to benefit from the high-performance with QSFP-DD small footprint, low power consumption and vendor interoperability for cloud Data Center Interconnects.

The coherent optical modules meet the requirement for increasing the flow of data while ensuring service continuity, security and global expansion. By joining their competencies, the companies aim to introduce advanced optical technologies in a rapidly changing market.

Jabil Photonics is a leading player in coherent pluggable transceivers with its portfolio to build innovative solutions and achieve volume production.

Jabil benefits from end-market strength and solid operational execution. This Saint Petersburg, FL-based company is expected to witness strong top-line growth in mobility, 5G wireless and cloud businesses.

The stock has gained 18% in the past year compared with the industry’s growth of 7.9%.

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JBL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Clearfield, Inc. (CLFD - Free Report) is a better-ranked stock in the broader Zacks Computer and Technology sector, sporting a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has been revised upward by 20.5% over the past 60 days.

Clearfield delivered a trailing four-quarter earnings surprise of 50.7%, on average. It has gained 77.7% in the past year.

Qualcomm, Inc. (QCOM - Free Report) , carrying a Zacks Rank #2 (Buy), is another solid pick for investors. The consensus estimate for current-year earnings has been revised upward by 12.2% over the past 60 days.

Qualcomm delivered a trailing four-quarter earnings surprise of 12.2%, on average. It has appreciated 16.2% in the past year.

Sierra Wireless, Inc. carries a Zacks Rank #2. The consensus mark for current-year earnings has been revised upward by 237.5% over the past 60 days.

Sierra Wireless pulled off a trailing four-quarter earnings surprise of 58%, on average. The stock has returned 16.5% in the past year.


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