Bull Of The Day: Jabil (JBL)

Core Viewpoint - Jabil (JBL) is recognized as a strong buy with a Zacks Rank 1, indicating positive growth potential despite its valuation metrics suggesting caution for value-oriented investors [1]. Company Overview - Jabil, Inc. provides manufacturing services and solutions through its Electronics Manufacturing Services (EMS) and Diversified Manufacturing Services (DMS) segments, focusing on various industries including aerospace and automotive [2]. Earnings Performance - Jabil has consistently exceeded earnings expectations, with the latest EPS reported at $2.85, surpassing the Zacks Consensus Estimate of $2.72 by 4.8% [4]. - The average positive earnings surprise over the last four quarters stands at 8.3% [4]. Earnings Estimates Revisions - Earnings estimates for Jabil have been revised upwards, with the fiscal year 2026 estimate increasing from $11.05 to $11.55 and fiscal year 2027 from $13.08 to $13.41 over the past 60 days [5]. Valuation Metrics - Jabil's forward earnings multiple is 20x, which is considered high given the expected growth rates of 8% for this year and 7% for the next [6]. - The price-to-book ratio is noted at 19x, which may deter value-focused investors, while the price-to-sales ratio is 0.83x, indicating limited market valuation on incremental sales [6]. Operating Margins - Operating margins have shown improvement, increasing from 3.1% to 3.3% and most recently to 3.4% [7].