This hi-tech company beat analysts’ earnings expectations by eight cents last quarter and is forecast to grow at double-digit rates next year.
Jabil Circuit (JBL)
From Dow Theory Forecasts
Jabil Circuit (JBL) provides electronic-manufacturing services, including component procurement, design, production, and testing. Apple (AAPL) generated 24% of Jabil’s revenue in
fiscal 2015 ended August, up from 18% a year earlier. Shares rallied on robust August-quarter results that included per-share profits from operations rising tenfold on 15% revenue growth.
The stock has high exposure to the historically volatile consumer-device market and continues to funnel a significant amount of cash flow into capital expenditures. But it also offers excellent growth prospects, with per-share profits expected to rise 24% in fiscal 2016 on 11% higher
revenue.
And the stock trades at just nine times estimated year-ahead earnings. Earning an Overall
score of 99, Jabil is being added to the Buy and Long-Term Buy lists.
Richard J. Moroney, CFA, Dow Theory Forecasts, www.dowtheory.com, 800-233-5922, November 2, 2015