Dj Jabil Inc. Stock Rises Monday, Still Underperforms Market

Saint Petersburg, Florida-based Jabil Inc. is a trusted partner for the world's top brands, offering comprehensive engineering, manufacturing, and supply chain solutions. With a market cap of $16.2 billion, Jabil operates through Electronics Manufacturing Services and Diversified Manufacturing Services segments.

Companies worth $10 billion or more are generally described as "large-cap stocks," Jabil fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the electronic components industry.

Despite its notable strengths, Jabil has slipped 7.6% from its all-time high of $156.94 touched on Mar. 8. Nonetheless, JBL has soared over 27.2% in the past three months, outperforming the S&P 500 Index’s ($SPX) 4% gains during the same time frame.

However, Jabil has significantly lagged behind the S&P 500 over the longer term. JBL has gained 13.8% in 2024 and 12.8% over the past 52 weeks, compared to SPX’s 24.3% surge on a YTD basis and 26.2% returns over the past year.

To confirm the recent upturn, Jabil has traded consistently above its 50-day moving average since mid-September and above its 200-day moving average since early October.

Jabil stock prices soared 7.3% after the release of its better-than-expected Q1 results on Dec. 18. Although its net revenues surpassed analysts’ estimates by 5.9%, it was still down 16.6% compared to the year-ago quarter due to continued weakness in renewable energy and EV markets which dampened its Regulated Industries segment’s revenues and due to mobility divestiture, which reduced its Connected Living and Digital Commerce segment’s sales. Meanwhile, its non-GAAP core earnings plunged 33.5% year-over-year to $228 million.

On a more positive note, adjusting for the divestiture, the Connected Living and Digital Commerce segment saw a 12% revenue growth, fueled by gains in digital commerce and warehouse automation markets. Additionally, the Intelligent Infrastructure segment's revenues increased by 5% year-over-year to $2.5 billion, driven by strong demand in AI-related cloud, data center infrastructure, and capital equipment markets.

Jabil has lagged behind its peer Fabrinet’s 16.3% gains in 2024 and 17.5% returns over the past year.

Among the nine analysts covering the JBL stock, the consensus rating is a “Strong Buy.” Its mean price target of $158.25, represents a 9.1% premium to current price levels.

On the date of publication, Aditya Sarawgi 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.