Stockchase Opinions

The Weekly Buzzing Stocks by Billy Kawasaki Jabil Circuit JBL-N TOP PICK Jun 15, 2023

Jabil is a manufacturing solutions provider with over 260,000 employees across 100 locations in 30 countries. The world's leading brands rely on Jabil's unmatched breadth and depth of end-market experience, technical and design capabilities, manufacturing know-how, supply chain insights and global product management expertise. Driven by a common purpose, Jabil and its people are committed to making a positive impact on their local community and the environment.

$104.640

Stock price when the opinion was issued

electrical electronic
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BUY
Prefers over Celestica.
TOP PICK
Tied to a broad array of companies in the technology space. If the trend in consumer spending continues, they should do very well.
DON'T BUY

The problem he is having with this is the same problem he is having with many of the others in the contract manufacturing space. The margins are so thin. Their pre-tax margin is about 3%, so if they make a mistake, it costs them a lot and there is not a lot of opportunity to make up profit.

BUY

They report Thursday. The market always compares Jabil's results to Apple's, but he wishes they'd look at just Jabil. An unsung tech company, Jabil is up 36% YTD.

BUY

He just bought it. It's cheap at 10x forward earnings. They're in a hot business--a in logistics and supply chains. A very cheap stock. They've gotten into new markets. It's low-risk given the low multiple. They will guide to an earnings number of $10/share. Earnings will be released on Wednesday. This is a long-term hold.

PARTIAL BUY
Is joining the S&P

It just pre-announced weak sales and slashed guidance, but it's still up 70% this year. Earnings have tripled in the past 5 years. They do more than supply Apple. Offer steady earnings grow in the past decade.

BUY

Shares jumped 7% today because they reported a super quarter and raised their forecast due to a lot of data centre construction. Anything in data centres is on fire.