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Jabil (JBL) Launches Optical Cable for Improved Performance
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Jabil Inc. (JBL - Free Report) recently introduced a new Active Optical Cable family to address the increasing demand for low-cost, high-performance, short-distance interconnects. This is likely to augment its leading market position as one of the largest global suppliers of electronic manufacturing services.
Leveraging strong product design, precision manufacturing and packaging services, the new product aims to increase the deployment flexibility for operators at reduced costs and lower latency. In addition, the solution offers seamless compatibility with a vast range of Ethernet switch designs.
The product forms an integral part of Jabil’s photonics business unit that empowers firms to reduce the complexities of developing and deploying enhanced optical networking solutions by offering complete photonics capabilities and competencies.
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. This initiative should position the company well on the growth trajectory. The diversification will increase the reliability of the company’s earnings and revenues, thereby driving returns for investors in the long haul.
In addition, Jabil’s top-line growth is expected to benefit from strength in healthcare, cloud, retail and industrial. The company is likely to gain from the rapid adoption of 5G wireless and cloud computing in the long haul. It is benefiting from solid demand in key end markets together with excellent operational execution and skillful management of supply chain dynamics.
With more than 250,000 employees across 100 locations in 30 countries, Jabil is likely to benefit from secular growth drivers with strong margin and cash flow dynamics. Moreover, its unmatched depth of end-market experience, technical and design capabilities, manufacturing know-how, supply chain insights and global product management expertise have put it in good stead. An extensive global footprint is further strengthened by a centralized procurement process, which, coupled with a single Enterprise Resource Planning system, enables customers with end-to-end supply chain visibility.
The stock delivered an earnings surprise of 8.8%, on average, in the trailing four quarters and has a long-term earnings growth expectation of 12%. The stock gained 57.9% in the past year compared with the industry’s growth of 41.5%.
Arista Networks, Inc. (ANET - Free Report) , sporting a Zacks Rank #1, is likely to benefit from the strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 17.5% and delivered an earnings surprise of 12.7%, on average, in the trailing four quarters.
It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.
Juniper Networks, Inc. (JNPR - Free Report) carries a Zacks Rank #2 (Buy). It has a long-term earnings growth expectation of 7% and delivered an earnings surprise of 1.6%, on average, in the trailing four quarters.
Juniper is leveraging the 400-gig cycle to capture hyperscale switching opportunities inside the data center. The company is set to capitalize on the increasing demand for data center virtualization, cloud computing and mobile traffic packet/optical convergence.
Viavi Solutions Inc. (VIAV - Free Report) , carrying a Zacks Rank #2, is another key pick. Headquartered in Scottsdale, AZ, Viavi is a leading provider of network test, monitoring and service enablement solutions to diverse sectors across the globe. The product portfolio of the company offers end-to-end network visibility and analytics that help build, test, certify, maintain, and optimize complex physical and virtual networks.
Viavi also offers high-performance thin film optical coatings for light-management solutions used in anti-counterfeiting, 3D sensing, electronics, automotive, defense and instrumentation markets. It delivered an earnings surprise of 9.1%, on average, in the trailing four quarters.
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Jabil (JBL) Launches Optical Cable for Improved Performance
Jabil Inc. (JBL - Free Report) recently introduced a new Active Optical Cable family to address the increasing demand for low-cost, high-performance, short-distance interconnects. This is likely to augment its leading market position as one of the largest global suppliers of electronic manufacturing services.
Leveraging strong product design, precision manufacturing and packaging services, the new product aims to increase the deployment flexibility for operators at reduced costs and lower latency. In addition, the solution offers seamless compatibility with a vast range of Ethernet switch designs.
The product forms an integral part of Jabil’s photonics business unit that empowers firms to reduce the complexities of developing and deploying enhanced optical networking solutions by offering complete photonics capabilities and competencies.
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. This initiative should position the company well on the growth trajectory. The diversification will increase the reliability of the company’s earnings and revenues, thereby driving returns for investors in the long haul.
In addition, Jabil’s top-line growth is expected to benefit from strength in healthcare, cloud, retail and industrial. The company is likely to gain from the rapid adoption of 5G wireless and cloud computing in the long haul. It is benefiting from solid demand in key end markets together with excellent operational execution and skillful management of supply chain dynamics.
With more than 250,000 employees across 100 locations in 30 countries, Jabil is likely to benefit from secular growth drivers with strong margin and cash flow dynamics. Moreover, its unmatched depth of end-market experience, technical and design capabilities, manufacturing know-how, supply chain insights and global product management expertise have put it in good stead. An extensive global footprint is further strengthened by a centralized procurement process, which, coupled with a single Enterprise Resource Planning system, enables customers with end-to-end supply chain visibility.
The stock delivered an earnings surprise of 8.8%, on average, in the trailing four quarters and has a long-term earnings growth expectation of 12%. The stock gained 57.9% in the past year compared with the industry’s growth of 41.5%.
Image Source: Zacks Investment Research
Jabil currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Picks
Arista Networks, Inc. (ANET - Free Report) , sporting a Zacks Rank #1, is likely to benefit from the strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 17.5% and delivered an earnings surprise of 12.7%, on average, in the trailing four quarters.
It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.
Juniper Networks, Inc. (JNPR - Free Report) carries a Zacks Rank #2 (Buy). It has a long-term earnings growth expectation of 7% and delivered an earnings surprise of 1.6%, on average, in the trailing four quarters.
Juniper is leveraging the 400-gig cycle to capture hyperscale switching opportunities inside the data center. The company is set to capitalize on the increasing demand for data center virtualization, cloud computing and mobile traffic packet/optical convergence.
Viavi Solutions Inc. (VIAV - Free Report) , carrying a Zacks Rank #2, is another key pick. Headquartered in Scottsdale, AZ, Viavi is a leading provider of network test, monitoring and service enablement solutions to diverse sectors across the globe. The product portfolio of the company offers end-to-end network visibility and analytics that help build, test, certify, maintain, and optimize complex physical and virtual networks.
Viavi also offers high-performance thin film optical coatings for light-management solutions used in anti-counterfeiting, 3D sensing, electronics, automotive, defense and instrumentation markets. It delivered an earnings surprise of 9.1%, on average, in the trailing four quarters.