$101.04
arrow_drop_down1.51%Is JBL a Buy or Sell based on AI Analysis?
Fundamental Analysis
Based on the fundamental analysis of Jabil Inc, several key indicators stand out. Firstly, the company has a strong return on equity at 31.15%, indicating efficient use of shareholder funds to generate profits. Additionally, the low debt-to-equity ratio of 1.28 suggests a conservative approach to financing and a lower risk profile for investors. The company's solid operating margin of 5.34% and net margin of 2.36% indicate effective cost management and profitability, while the positive free cash flow margin of 2.03% demonstrates the company's ability to generate cash after expenses. Furthermore, Jabil Inc's revenue growth of 3.66% reflects a stable and growing business, while the positive earnings growth average of 12.41% over the past three years signals strong financial performance. The company's strong gross margin of 8.26% suggests efficient production and pricing strategies, contributing to healthy profit margins. Overall, these key fundamental indicators highlight Jabil Inc as a financially sound and consistently performing company in the technology sector, making it an attractive investment option for investors seeking long-term growth and stability.
Positive Development
Jabil has been recognized as a top growth stock by Zacks.com, indicating the stock has strong potential for long-term growth. Jabil has achieved its greenhouse gas emissions reduction goal ahead of schedule, highlighting the company's commitment to sustainability and social responsibility. The company's financials show a healthy gross margin, operating margin, and EBIT per share, indicating strong profitability.
Negative Development
The stock has recently experienced a slight decrease in net revenue for Q1 2024, indicating potential weakness in the company's financial performance. The company's current ratio and net margin are relatively low, indicating potential liquidity issues and profitability concerns. The company's total debt to equity ratio is high, which could impact its ability to meet financial obligations and raise concerns for investors.
Technical Analysis
Jabil Inc (JBL) currently has a technical rating of SELL based on various indicators such as Relative Strength Index (RSI), Commodity Channel Index (CCI), Williams Percent Range (WILLR), and Stochastic Relative Strength Index (STOCHRSI). With a score of 67 in the market and a stock sector in Technology, Jabil Inc shows a mixed sentiment among technical analysts. The stock has a beta of 1.41, indicating that it is slightly more volatile than the overall market. Additionally, the company's technical indicators updated on March 4th suggest a mix of buy, hold, and sell signals, with 1 buy indicator (Average True Range) and 7 hold or sell indicators (MACD, ADX, ROC, RSI, CCI, WILLR, and STOCHRSI). On the other hand, Jabil Inc's technical analysis also reveals strong support levels for the stock. Despite the current SELL rating, the stock has shown positive price movements in the past week, with a 6.43% increase in the seven days price change percent. The stock's technical indicators suggest that it may be slightly oversold, creating potential buying opportunities for investors. With a historical cumulative multiple of 8 and a track record of three stock splits (most recently a 2:1 split in 2000), Jabil Inc's shares outstanding of 127.55M indicate a stable and established market presence. Investors may want to consider these technical factors alongside fundamental analysis when making decisions about investing in Jabil Inc.
Conclusion and recommendation
Based on the data provided, Jabil Inc (JBL) is currently performing well in the stock market, with a score of 67 and a technical rating of "SELL." The company's financials show strong metrics such as a market cap of $18.96B, annual revenue of $34.7B, and a net income of $818M. Jabil Inc also has a solid return on equity of 31.15% and a dividend yield of 0.22%. Additionally, the company's stock has shown positive price changes over various time frames, including a 6.43% increase in the past seven days and a 418.92% increase over the past five years. However, it is worth noting that the earnings growth year over year is negative at -17.87%. In conclusion, based on the data provided, Jabil Inc appears to be a strong and stable company in the technology sector. Investors may be interested in this stock for its solid financial performance and positive price changes over time. However, it is important to closely monitor the negative earnings growth year over year and consider the company's future growth potential. Overall, Jabil Inc presents a promising investment opportunity for those seeking a stable and potentially profitable stock in the technology sector.