JBL stock (Jabil Inc) analysis, prediction, valuation

On January 14th I alerted about adding JBL stock to my portfolio. Today, Jabil Inc released their fiscal Q1 2021 results which sent the stock price to the highest level seen in the past 20 years. The stock approached this level twice in the past 20 years, but never crossed it. The market was chewing this new level all day today going up and down but closed with a +7.38% increase vs. yesterday.


Will it go up from here? I believe it will. The next few days will be crucial for the price action as today was the day of bulls/bears fight with bears trying to bring the price down.


JBL Stock Overview: company, category description


Jabil Inc. provides manufacturing services and solutions worldwide. The company operates in two segments, Electronics Manufacturing Services and Diversified Manufacturing Services. It offers electronics design, production, and product management services. The company provides electronic circuit design services, such as application-specific integrated circuit design, firmware development and rapid prototyping services; and designs plastic and metal enclosures that include the electro-mechanics, such as the printed circuit board assemblies (PCBA).

JBL Stock Financial overview


In the most recent earnings report, Jabil Inc. reported an increase in earnings per share of 52.38% over the past year to $1.60, which beat the estimate of $1.27. It also reported an increase in revenues of 4.36% year over year. Jabil Inc.'s revenue of $7.8 billion rose by 4.36% year over year, which beat the estimate of $7.03 billion.

Looking ahead, Jabil said it expects Q2 adjusted EPS of $0.83 to $1.03 and sales of $6.2 billion to $6.8 billion. In Q1 2020 Jabil Inc. delivered revenue of $6.18 billion and EPS of -$0.02 (EPS for Q1 2019 was $0.43).


So, the above results and guidance from Jabil Inc. show the company has been growing well and increasing its EPS.



JBL Stock Key financial ratings/Stock Value


Using the EPS Jabil Inc. delivered and its projections we can see that the Price-to-Earnings ratio is just ~10. The average PE for Jabil's segment is 25.9.

Source: https://simplywall.st/stocks/us/tech/nyse-jbl/jabil


Historically (until the recent COVID-related drop in Earnings) JBL stock was trading in the PE range of 25-29.

So, if Jabil continues to deliver current levels of EPS and we use a more conservative PE of 20, the price for JBL should double from this level of $44.


JBL Stock Analytics Predictions


Prior to the earnings release, JBL had 10 ratings from analysts. 7 of them had a 'Buy' rating. 3 - 'Hold'. The average target price was $47.17. It would be interesting to see if any of those get revised due to the estimates beat and high guidance.

Source: https://www.marketwatch.com/investing/stock/jbl/analystestimates?mod=mw_quote_tab



JBL Stock Ownership by Institutions


90.2% of company shares are currently owned by institutions leaving a small public float. This could send the prices up if this stock gets attention from the general public.






Disclaimer: I own JBL stock. I do not suggest you should buy any of the stocks I write about. As usual, please do your own due diligence before investing your own money in any of the stocks I write about. The above analysis is quite basic and just gives ideas for further research. A much deeper analysis is required for each stock, including the analysis of operations, debt, etc. I may sell any of the stocks I say I currently own at any moment before it reaches the targets that I set or keep them for even when they reach the target.


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