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Jabil (JBL) Partners KAV Sports for Customized 3D Bike Helmets

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Jabil Inc. (JBL - Free Report) recently announced that it has collaborated with KAV Sports to develop customized bicycle helmets that meet all safety standards while delivering improved performance and aesthetics. These 3D-printed helmets are developed from custom nylon carbon-fiber material engineered by Jabil, leveraging its additive manufacturing prowess and pervasive manufacturing capabilities.

The traditional bike helmets usually come in one to three sizes and are often ill-fit for all head shapes and sizes. These new helmets are made from injection-molded, expanded polystyrene (EPS) foam with certain limitations in stability, durability and comfort in varied temperatures ranging from -15 degrees to more than 60 degrees Celsius.

This is where Jabil’s additive manufacturing expertise came in handy when it came up with a perfect material that provided excellent energy absorption, increased layer-to-layer adhesion for consistent performance and offered an improved look and feel. This proprietary nylon carbon-fiber composite embodied all the necessary properties and passed all the quality standard tests and validation testing to achieve certification in accordance with the U.S. Consumer Product Safety Commission and ISO 9001 Quality Management System certification.

The helmets are now available for mass customization with 3D printing in grey, black and white colors. The additive manufacturing process allows KAV Sports to reduce production costs and eliminate unnecessary waste, becoming an instant hit with users. It now aims to reach a wider customer base by capitalizing on Jabil’s extensive manufacturing capacities and supply chain efficiencies.

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 gained 31.3% in the past year compared with the industry’s growth of 23.1%.

Zacks Investment Research
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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 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 14.2% and delivered an earnings surprise of 14.2%, 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.

Deutsche Telekom AG (DTEGY - Free Report) , sporting a Zacks Rank #1, is likely to benefit from the accretive post-merger integration of T-Mobile US Inc. and Sprite in the United States, in which it owns about 43% stake. The removal of forced cable TV access in multiple dwelling units in Germany through telecom legislation is likely to help Deutsche Telekom expand its broadband market.

Moreover, an aggressive fiber rollout strategy across the country is expected to augment its domestic market hold. The Zacks Consensus Estimate for current-year earnings for Deutsche Telekom has been revised 21.8% upward over the past year. It has a VGM Score of A and a long-term earnings growth expectation of 15.7%.

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