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If You Invested $1000 in Jabil a Decade Ago, This is How Much It'd Be Worth Now

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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.

The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as 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 $8,458 million in the fourth quarter of fiscal 2023.

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 (48% of fourth quarter fiscal 2023 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 (52% of fourth quarter fiscal 2023 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.

A $1000 investment made in November 2013 would be worth $6,449.90, or a 544.99% gain, as of November 28, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.

In comparison, the S&P 500 gained 151.79% and the price of gold went up 55.05% over the same time frame.

Going forward, analysts are expecting more upside for JBL.

Jabil’s top-line growth is likely to benefit from strength in healthcare, cloud, retail and industrial. The company is expected to gain from rapid adoption of 5G wireless and cloud computing, while healthy traction in auto & transportation are tailwinds. Divestiture of the Mobility business will boost financial flexibility and expedite investment in core and emerging verticals. A higher free cash flow indicates efficient financial management practices, optimum utilization of assets and improved operational efficiency. However, declining net sales in the EMS vertical and demand softness in semi-cap businesses are major headwinds. Intense competition from both domestic and international electronic manufacturing service providers is weighing on margins. Rising geopolitical volatility and macroeconomic challenges are other concerns.

Over the past four weeks, shares have rallied 9.05%, and there have been 4 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.

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