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Saint Petersburg, Florida-based Jabil Inc. (JBL) provides manufacturing services and solutions. With a market cap of $14.8 billion, the company offers digital prototyping, printed electronics, device integration, circuit designing, and volume board assembly services.
Shares of this leading manufacturing and supply chain management provider have underperformed the broader market over the past year. JBL has gained 1.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 32.1%. In 2024, JBL’s stock rose 4.2%, compared to the SPX’s 26.2% rise on a YTD basis.
Narrowing the focus, JBL’s underperformance is apparent compared to the iShares U.S. Technology ETF (IYW). The exchange-traded fund has gained about 36.5% over the past year. Moreover, the ETF’s 30.2% gains on a YTD basis outshine the stock’s single-digit returns over the same time frame.
The company has faced challenges in various end markets leading to a decline in its recent financial performance. Moreover, weakness in sectors such as 5G, renewable energy, and digital printing has hindered its growth.
On Sep. 26, JBL shares closed up more than 11% after reporting its Q4 results. Its revenue stood at $7 billion, down 17.7% year over year. The company’s adjusted EPS declined 6.1% year over year to $2.30. For Q1, JBL expects revenue to be between $6.3 billion and $6.9 billion, and expects adjusted EPS to be $1.65 to $2.05.
For the current fiscal year, ending in August 2025, analysts expect JBL’s EPS to decline 7.7% to $7.84 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the eight analysts covering JBL stock, the consensus is a “Strong Buy.” That’s based on six “Strong Buy” ratings, and two “Holds.”
The configuration is consistent over the past three months.
On Sep. 27, Barclays PLC (BCS) maintained a “Buy” rating on JBL with a $157 price target, implying a potential upside of 18.3% from current levels.
The mean price target of $145 represents a 9.3% premium to JBL’s current price levels. The Street-high price target of $160 suggests an ambitious upside potential of 20.6%.
