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Here's How Much You'd Have If You Invested $1000 in Jabil a Decade Ago
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Jabil (JBL - Free Report) ten years ago? It may not have been easy to hold on to JBL for all that time, but if you did, how much would your investment be worth today?
Jabil's Business In-Depth
With that in mind, let's take a look at Jabil's main business drivers.
Headquartered in St. Petersburg, FL, Jabil, Inc., is one of the largest global suppliers of electronic manufacturing services. The company offers electronics design, production, product management and after-market services to customers catering to aerospace, automotive, computing, consumer, defense, industrial, instrumentation, medical, networking, peripherals, storage and telecommunications industries.
Jabil reported revenues of $33.5 billion in fiscal 2022.
Beginning fiscal 2015, Jabil has two reporting segments: Electronics Manufacturing Services (EMS) segment and Diversified Manufacturing Services (DMS). The EMS segment includes enterprise and infrastructure, high velocity, and industrial energy businesses whereas the DMS segment will include Jabil’s Nypro and Green Point brands.
The EMS segment (50.2% of fiscal 2022 revenues) is focused on leveraging IT, supply chain design and engineering, technologies largely centered on core electronics, sharing of large scale manufacturing infrastructure and serving a broad range of end markets. EMS segment is typically a low margin but high-volume business that manufactures products at a quicker cycle time and in larger quantities. The EMS segment includes customers primarily in the automotive, computing, digital home, energy, industrial, networking, printing, storage and telecommunications industries.
The DMS segment (49.8% of fiscal 2022 revenues) is focused on providing engineering solutions, heavy participation in consumer markets, access to higher growth markets and a focus on material sciences and technologies. The DMS segment is a high-margin business and includes customers primarily from the consumer lifestyles, health care, mobility and packaging industries.
The company’s largest customers included Apple, Cisco, Hewlett-Packard Company, Keysight Technologies, LM Ericsson, NetApp, Nokia Networks, SolarEdge Technologies, Valeo S.A. and Zebra Technologies.
The company faces significant competition from the likes of Benchmark Electronics, Celestica, Flex, Hon-Hai Precision Industry, Plexus and Sanmina.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Jabil ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in October 2012 would be worth $3,692.31, or a gain of 269.23%, as of October 25, 2022, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 169.55% and the price of gold went up -7.45% over the same time frame.
Going forward, analysts are expecting more upside for JBL.
Jabil is benefiting from strong demand in key end markets with excellent operational execution and skillful management of supply chain dynamics. It is likely to witness healthy top-line growth owing to secular tailwinds in healthcare, automotive, industrial, 5G and cloud businesses. Jabil’s focus on end-market and product diversification is a key catalyst. Its Photonics business unit and EFFECT Photonics have joined forces to develop next-generation coherent optical modules, which will likely drive top-line expansion. However, the company is expected to suffer from supply chain disruptions. It faces intense competition from both domestic and international electronic manufacturing service providers that strains margins. Commoditization and consolidation are other headwinds for Jabil.
Shares have gained 11.97% over the past four weeks and there have been 4 higher earnings estimate revisions for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much You'd Have If You Invested $1000 in Jabil a Decade Ago
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Jabil (JBL - Free Report) ten years ago? It may not have been easy to hold on to JBL for all that time, but if you did, how much would your investment be worth today?
Jabil's Business In-Depth
With that in mind, let's take a look at Jabil's main business drivers.
Headquartered in St. Petersburg, FL, Jabil, Inc., is one of the largest global suppliers of electronic manufacturing services. The company offers electronics design, production, product management and after-market services to customers catering to aerospace, automotive, computing, consumer, defense, industrial, instrumentation, medical, networking, peripherals, storage and telecommunications industries.
Jabil reported revenues of $33.5 billion in fiscal 2022.
Beginning fiscal 2015, Jabil has two reporting segments: Electronics Manufacturing Services (EMS) segment and Diversified Manufacturing Services (DMS). The EMS segment includes enterprise and infrastructure, high velocity, and industrial energy businesses whereas the DMS segment will include Jabil’s Nypro and Green Point brands.
The EMS segment (50.2% of fiscal 2022 revenues) is focused on leveraging IT, supply chain design and engineering, technologies largely centered on core electronics, sharing of large scale manufacturing infrastructure and serving a broad range of end markets. EMS segment is typically a low margin but high-volume business that manufactures products at a quicker cycle time and in larger quantities. The EMS segment includes customers primarily in the automotive, computing, digital home, energy, industrial, networking, printing, storage and telecommunications industries.
The DMS segment (49.8% of fiscal 2022 revenues) is focused on providing engineering solutions, heavy participation in consumer markets, access to higher growth markets and a focus on material sciences and technologies. The DMS segment is a high-margin business and includes customers primarily from the consumer lifestyles, health care, mobility and packaging industries.
The company’s largest customers included Apple, Cisco, Hewlett-Packard Company, Keysight Technologies, LM Ericsson, NetApp, Nokia Networks, SolarEdge Technologies, Valeo S.A. and Zebra Technologies.
The company faces significant competition from the likes of Benchmark Electronics, Celestica, Flex, Hon-Hai Precision Industry, Plexus and Sanmina.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Jabil ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in October 2012 would be worth $3,692.31, or a gain of 269.23%, as of October 25, 2022, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 169.55% and the price of gold went up -7.45% over the same time frame.
Going forward, analysts are expecting more upside for JBL.
Jabil is benefiting from strong demand in key end markets with excellent operational execution and skillful management of supply chain dynamics. It is likely to witness healthy top-line growth owing to secular tailwinds in healthcare, automotive, industrial, 5G and cloud businesses. Jabil’s focus on end-market and product diversification is a key catalyst. Its Photonics business unit and EFFECT Photonics have joined forces to develop next-generation coherent optical modules, which will likely drive top-line expansion. However, the company is expected to suffer from supply chain disruptions. It faces intense competition from both domestic and international electronic manufacturing service providers that strains margins. Commoditization and consolidation are other headwinds for Jabil.
Shares have gained 11.97% over the past four weeks and there have been 4 higher earnings estimate revisions for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.