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Based in Saint Petersburg, Florida, Jabil Inc. (JBL) provides manufacturing services and solutions worldwide. Valued at a market cap of $12.3 billion, the company operates in two segments: Electronics Manufacturing Services and Diversified Manufacturing Services, with Apple and Cisco being a few of its largest customers.
Shares of this electronics manufacturer have significantly underperformed the broader market over the past 52 weeks. JBL has gained 5.6% over this time frame, while the broader S&P 500 Index ($SPX) has soared 27.8%. In 2024, shares of JBL declined 14.8%, compared to SPX’s 17.8% gain on a YTD basis.
Zooming in further, JBL’s underperformance looks even more pronounced when compared to S&P 500 EW Technology Invesco ETF’s (RSPT) 30.1% gain over the past 52 weeks and 14.1% return on a YTD basis.
Despite beating Wall Street’s earnings estimates, shares of JBL dipped 11.4% on Jun. 20 following its Q3 earnings release primarily due to a year-over-year decline in the company’s revenue and earnings driven by lower revenue from end markets like 5G, renewable energy, and digital print. Moreover, the company’s anticipated near-term slowdown in electric vehicles (EVs) and medical device businesses further reduced investor confidence.
For the current fiscal year, ending in August, analysts expect JBL’s EPS to decline marginally year over year to $7.86. The company’s earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing on another occasion.
Among the eight analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on six “Strong Buy” ratings and two “Holds.”
Overall, the configuration has remained steady over the past months.
On Jun. 21, UBS analyst David Vogt maintained a “Neutral” rating on Jabil and cut the price target to $120, noting the company’s year-over-year decline in revenues and sluggish growth outlook for the year.
The mean price target of $136.28 represents a premium of 25.5% to JBL’s current levels. The street-high price target of $160, implies a potential upside of 47.3% from the current price.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
