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Jabil (JBL) to Enhance Cardo Systems' Market Leadership

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Jabil Inc. (JBL - Free Report) and Cardo Systems have entered into a manufacturing collaboration to use  world-class manufacturing capabilities of the former to keep pace with ever-increasing production volumes. The use of Jabil’s supply chain expertise and dedicated Workcell model will aid Cardo in mitigating risks, driving lower costs and ensuring on-time deliveries.

In order to meet the rapid growth of premium motorcycles, proper supply chain support, stringent quality testing and speed and agility in product development are required. Jabil’s manufacturing expertise, acoustics experience and global supply chain will offer a solution to all these challenges. The collaboration, for a streamlined supply chain management, has resulted in a decrease in Stock Keeping Units from hundreds to tens. The supply chain leverage and the opportunity to use different materials and components provided by Jabil have helped Cardo scale up its early-stage product designs for volume manufacturing.

Cardo believes that its leadership path is fueled by Jabil’s turnkey approach, encompassing sourcing, purchasing, production and logistics. Jabil’s persistency in keeping up with dramatic market changes has contributed to the improved quality, on-time delivery and manufacturing costs. Additionally, it is working with Cardo to extend the reach of its innovative products across Europe, the United States, Asia and Latin America.

Jabil’s focus on end market and product diversification is a key catalyst. The company’s target that “no product or product family should be greater than 5% operating income or cash flows in any fiscal year” is commendable. The initiative should position the company well on the growth trajectory.

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The stock has gained 1.5% over the past year compared with the industry’s decline of 2.6%.

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

Coupa Software Incorporated (COUP - Free Report) is a better-ranked stock in the broader Zacks Computer and Technology sector, carrying a Zacks Rank #2 (Buy). Coupa Software has a long-term earnings growth expectation of 22.32%.

Coupa Software’s smart and efficient spend-control programs that provide enhanced reporting and analytics have been the primary reason behind its expanding clientele.

SAP SE (SAP - Free Report) , carrying a Zacks Rank #2, is a key pick for stock investors. SAP has a long-term earnings growth expectation of 5.89%.

SAP, with its Rise with SAP solution, was adopted by clients, including Accenture, Canon Production Printing, Exide Industries Limited, NEC Corporation, Qinqin Food, Rising Auto and TELUS.

Silicon Motion Technology (SIMO - Free Report) also carries a Zacks Rank #2. It has a long-term earnings growth expectation of 9%, with an earnings surprise of 1.05% on average in the trailing four quarters.

Silicon Motion has established itself as the leading merchant supplier of client SSD controller to module makers, including most leaders in the United States.