Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Characteristics - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, identified through the Zacks Momentum Style Score [3] Group 2: Jabil (JBL) Stock Analysis - Jabil (JBL) has shown a four-week price change of 0.4%, indicating growing investor interest [4] - Over the past 12 weeks, JBL's stock has gained 32.6%, with a beta of 1.2, suggesting it moves 20% more than the market [5] - JBL has a Momentum Score of B, indicating a favorable time to invest [6] - JBL's upward trend in earnings estimate revisions has earned it a Zacks Rank 2 (Buy), which is associated with strong momentum effects [7] - The stock is trading at a Price-to-Sales ratio of 0.82, suggesting it is undervalued [7] Group 3: Investment Opportunities - JBL is positioned for further growth, and there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles for potential stock picks [9]

Core Viewpoint - Jabil (JBL) has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, reflecting the company's changing earnings picture [1][2]. - Changes in future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Jabil indicate an improvement in the company's underlying business, likely leading to increased stock prices [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7][9]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions [9][10]. Specifics on Jabil's Earnings Estimates - Jabil is expected to earn $9.39 per share for the fiscal year ending August 2025, with no year-over-year change [8]. - Over the past three months, the Zacks Consensus Estimate for Jabil has increased by 5.5% [8].

Core Insights - Jabil, Inc. (JBL) has experienced a stock price increase of 119.6% over the past year, which is lower than the Electronic Manufacturing Services industry's growth of 136.7% but higher than the S&P 500's performance during the same period [1][8] - The company has outperformed Sanmina Corporation (SANM), which gained 80.1%, but underperformed Celestica, Inc. (CLS), which surged 311.4% [2] Group 1: Market Trends and Strategic Initiatives - The AI data center market is projected to grow from $13.62 billion in 2025 to $60.49 billion by 2030, reflecting a compound annual growth rate of 28.3% [4] - Jabil has formed a collaboration with Endeavour Energy LLC to provide sustainable data center infrastructure, aiming to deliver on-demand data center capacity [4][5] - The acquisition of Mikros Technologies enhances Jabil's capabilities in the AI data center market, particularly in advanced cooling solutions necessary for high computing power [6][9] Group 2: Financial Performance and Estimates - Earnings per share (EPS) estimates for 2025 have risen by 4.45% to $9.39, indicating strong investor confidence [8][12] - The company is set to invest $500 million in the Southeast U.S. to expand manufacturing capabilities and develop a skilled workforce for cloud and AI data center solutions [10] - Jabil's price/earnings ratio is currently at 21.00, which is lower than the industry average of 23.59 but above its historical mean of 16.73 [13] Group 3: Competitive Position and Diversification - Jabil's focus on product diversification across multiple sectors, including capital equipment, warehouse automation, and renewable energy, provides resilience against macroeconomic disruptions [11] - The company's integration of AI and machine learning capabilities is enhancing operational efficiency and margins [11] - Jabil's strong portfolio positions it competitively in the AI hardware supply chain, despite increased investments from competitors like Celestica and Sanmina [10][16]

Core Viewpoint - BYD announced the acquisition of Jabil's manufacturing operations in Chengdu and Wuxi for approximately RMB 15.8 billion (equivalent to USD 2.2 billion), aiming to expand its smartphone components business and improve customer and product structure [1][3]. Group 1: Acquisition Details - The acquisition will enhance BYD's smartphone components business and is considered a significant transaction for Jabil, which is a wholly-owned subsidiary of Jabil Inc. [3][5]. - Jabil ranks fourth among the world's largest electronic manufacturing service providers, with operations in 30 countries and over 250,000 employees [3]. - The Chengdu facility focuses on adhesive, anodizing, anti-soiling coatings, automation, and battery management, while the Wuxi facility specializes in printed circuit board assembly and automation manufacturing systems [3][4]. Group 2: Financial Performance - BYD Electronics reported a significant recovery in performance, with a projected net profit increase of 115%-146% year-on-year for the first half of the year, driven by increased market share from major clients and growth in new energy vehicles and smart products [4][6]. - Jabil's fiscal year 2022 revenue was USD 33.5 billion, with an operating profit of USD 1.4 billion, and it expects to achieve USD 34.7 billion in revenue for fiscal year 2023 [5]. Group 3: Market Impact - Following the announcement, BYD Electronics' stock experienced volatility, with a maximum intraday drop of over 9% before recovering [2]. - The acquisition is expected to create strategic opportunities for BYD Electronics, enhancing its competitive edge and market share in the smartphone components sector [4].

Company Performance - Jabil (JBL) closed at $218.56, reflecting a -2.07% change from the previous day, underperforming the S&P 500's daily loss of 1.6% [1] - Over the past month, Jabil's shares have decreased by 1.26%, while the Computer and Technology sector gained 4.45% and the S&P 500 increased by 2.25% [1] Upcoming Financial Results - Jabil's upcoming EPS is projected at $2.92, indicating a 26.96% increase compared to the same quarter last year [2] - The consensus estimate for revenue is $7.6 billion, reflecting a 9.17% rise from the equivalent quarter last year [2] Full-Year Estimates - Zacks Consensus Estimates forecast earnings of $9.39 per share and revenue of $29.15 billion for the full year, representing year-over-year changes of +10.6% and +0.93%, respectively [3] - Recent analyst estimate revisions indicate optimism about Jabil's business and profitability [3][4] Zacks Rank and Valuation - Jabil currently holds a Zacks Rank of 1 (Strong Buy), with a historical average annual return of +25% for 1 stocks since 1988 [5] - The Zacks Consensus EPS estimate has increased by 0.21% over the past month [5] - Jabil's Forward P/E ratio is 23.78, which is a premium compared to the industry average Forward P/E of 21.71 [6] Industry Context - Jabil has a PEG ratio of 1.44, matching the average PEG ratio of the Electronics - Manufacturing Services industry [7] - The Electronics - Manufacturing Services industry is part of the Computer and Technology sector and holds a Zacks Industry Rank of 9, placing it in the top 4% of over 250 industries [8]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Jabil (JBL) - Jabil currently holds a Momentum Style Score of B, indicating potential for strong performance based on price changes and earnings estimate revisions [3] - The company has a Zacks Rank of 1 (Strong Buy), suggesting it is expected to outperform the market [4] Price Performance - Over the past week, Jabil's shares increased by 0.88%, while the Zacks Electronics - Manufacturing Services industry declined by 0.57% [6] - In the last month, Jabil's stock price rose by 6.75%, outperforming the industry's 5.67% [6] - Over the past quarter, Jabil's shares surged by 56.35%, and over the last year, they increased by 106.35%, compared to the S&P 500's gains of 18.84% and 15.9%, respectively [7] Trading Volume - Jabil's average 20-day trading volume is 1,385,490 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the last two months, three earnings estimates for Jabil have been revised upward, with no downward revisions, leading to an increase in the consensus estimate from $8.93 to $9.39 [10] - For the next fiscal year, three estimates have also moved higher, indicating positive sentiment around Jabil's earnings potential [10] Conclusion - Given the strong performance metrics and positive earnings outlook, Jabil is positioned as a promising investment opportunity with a Momentum Score of B and a Zacks Rank of 1 (Strong Buy) [12]

Market Overview - Wall Street's winning streak continues, driven by positive trade news and strong economic data, with the S&P 500 reaching a record high following a significant trade deal between the United States and Japan, which lowers tariffs and opens up $550 billion in new investments [1] - Retail sales exceeded expectations in June, and jobless claims decreased, indicating a robust labor market and steady consumer spending despite ongoing tariff concerns [1][9] Trade Negotiations and Economic Environment - Progress in trade negotiations with the U.K., Indonesia, and the Philippines, along with positive signals from China and the EU, creates an encouraging backdrop for equities [2] - The current earnings season is contributing to market momentum, suggesting that focusing on relative price strength can help investors identify leading stocks [2] Stock Recommendations - Recommended stocks based on relative price strength include Western Digital Corporation (WDC), Flowserve Corporation (FLS), OPENLANE, Inc. (KAR), AngloGold Ashanti plc (AU), and Jabil Inc. (JBL) [3][9] - These stocks are outperforming their peers, supported by strong relative price strength metrics [9] Relative Price Strength Strategy - Earnings growth and valuation multiples are crucial for assessing a stock's potential returns and its performance relative to peers [4] - Investors are advised to avoid underperforming stocks and focus on those that are outperforming their respective industries or benchmarks [5] Screening Parameters - Stocks are screened based on relative price changes over 12 weeks, 4 weeks, and 1 week, as well as positive current-quarter estimate revisions [8] - Stocks that have shown better performance than the S&P 500 over the last 1 to 3 months and have solid fundamentals are considered for investment [6] Company Profiles - **Western Digital Corporation (WDC)**: Market cap of $23.4 billion, expected EPS growth of 2,465% year-over-year for fiscal 2025, with a trailing four-quarter earnings surprise of approximately 7.3% [11][12] - **Flowserve Corporation (FLS)**: Market cap not specified, expected EPS growth rate of 14.2% over three to five years, with a 22.1% year-over-year growth estimate for 2025 [13][14] - **OPENLANE, Inc. (KAR)**: Market cap of $2.7 billion, expected EPS growth of 17.7% year-over-year for 2025, shares up 44% in a year [14][15] - **AngloGold Ashanti plc (AU)**: Market cap of $21.8 billion, expected EPS growth of 125.8% year-over-year for 2025, shares up 89% in a year [16] - **Jabil Inc. (JBL)**: Market cap not specified, expected EPS growth rate of 16.6% over three to five years, with a 10.6% year-over-year growth estimate for 2025 [17][18]

Group 1 - Jabil (JBL) is outperforming the Computer and Technology sector with a year-to-date return of 53.5%, compared to the sector average of 9.8% [4] - Jabil holds a Zacks Rank of 1 (Strong Buy), indicating strong analyst sentiment and a positive earnings outlook, with a 5.5% increase in the consensus estimate for full-year earnings over the past quarter [3] - The Electronics - Manufacturing Services industry, to which Jabil belongs, has seen an average gain of 44.4% year-to-date, further highlighting Jabil's strong performance within its industry [5] Group 2 - Allegro MicroSystems, Inc. (ALGM) is another stock in the Computer and Technology sector that has outperformed, with a year-to-date increase of 65.8% and a consensus EPS estimate increase of 21.8% over the past three months [4][5] - The Electronics - Semiconductors industry, which includes Allegro MicroSystems, has gained 14.9% year-to-date and is ranked 54 among 44 industries [6]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1][2] Group 1: Momentum Investing Strategy - Momentum investors typically do not time the market, instead they capitalize on stocks that are trending upwards [1] - Identifying the right entry point for fast-moving stocks can be challenging, as they may lose momentum if their valuations exceed future growth potential [2] Group 2: Investment Opportunities - Investing in bargain stocks that have recently shown price momentum can be a safer strategy [3] - Jabil (JBL) is highlighted as a strong candidate for momentum investing, having experienced a 7.1% price increase over the past four weeks [4] - JBL has gained 52.5% over the past 12 weeks, indicating strong momentum [5] - JBL has a Momentum Score of B, suggesting it is an opportune time to invest [6] - JBL's upward trend in earnings estimate revisions has earned it a Zacks Rank 1 (Strong Buy), which is associated with strong momentum effects [7] - JBL is currently trading at a Price-to-Sales ratio of 0.84, indicating it is attractively priced relative to its sales [7] Group 3: Additional Investment Options - Besides JBL, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Zacks offers over 45 Premium Screens tailored to different investing styles, which can assist in identifying potential winning stocks [9]

Core Viewpoint - Jabil reported strong third-quarter fiscal 2025 results, surpassing both revenue and earnings estimates, driven by solid demand in key markets such as data center infrastructure and digital commerce [2][3][4]. Financial Performance - Net income on a GAAP basis was $222 million or $2.03 per share, up from $129 million or $1.06 in the prior-year quarter, primarily due to top line growth [3]. - Non-GAAP net income was $279 million or $2.55 per share, compared to $230 million or $1.89 in the prior-year quarter, exceeding the Zacks Consensus Estimate of $2.33 [3]. - Revenues increased to $7.82 billion from $6.76 billion year over year, beating the consensus estimate of $7.08 billion [4]. Segment Performance - The Regulated Industries segment generated $3.1 billion in revenues, flat year over year, contributing 39% to total revenues, affected by weakness in renewable energy and EV verticals [5]. - The Intelligent Infrastructure segment reported $3.4 billion in revenues, up 51% year over year, contributing 44% to total revenues, supported by demand in capital equipment and AI-related cloud services [6]. - The Connected Living & Digital Commerce segment saw revenues decline to $1.3 billion, down 7% year over year, accounting for 17% of total revenues, impacted by soft demand for consumer products [7]. Profitability and Cash Flow - Gross profit was $681 million, compared to $608 million in the year-ago quarter, while non-GAAP operating income rose to $420 million from $350 million [8]. - Non-GAAP operating margin was 5.4%, down from 6% in the prior year [8]. - Jabil generated $406 million of net cash from operating activities, with $1.52 billion in cash and cash equivalents as of May 31, 2025 [9]. Future Guidance - For the fourth quarter of fiscal 2025, revenues are expected to range from $7.1 billion to $7.8 billion, with non-GAAP operating income projected between $428 million and $488 million [10]. - Management raised fiscal 2025 revenue projections to $29 billion from $27.9 billion, with non-GAAP earnings per share expected at $9.33, up from $8.95 [11]. Market Sentiment - There has been an upward trend in estimates revision over the past month, indicating positive market sentiment [12]. - Jabil holds a Zacks Rank 1 (Strong Buy), suggesting expectations for above-average returns in the coming months [14].