Jabil Reveals New Initiative and Board Chair Before Earnings

JBL is trading up nearly 90% from its 52-week low

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Jabil Inc. (NYSE:JBL) is an American manufacturing services company. Brands rely on Jabil's end-market, technical, design, manufacturing, supply chain, and global product management experience. JBL has over 260,000 employees across 100 locations in 30 countries. This afternoon, JBL was last seen trading down 0.6% at $58.74.

On Sept. 20, Jabil Packaging Solutions, a division of JBL, announced an advancement in coffee pod sustainability with the launch of their home-compostable coffee capsule for single serve espresso brewers. This morning, the company also announced  Mark Mondello as the new chairman of the board, appointed by the Board of Directors.

Jabil's date with the earnings confessional is not far off, either. JBL is slated to release fiscal fourth-quarter earnings before the open on Wednesday, September 29. In recent history, Jabil has outperformed earnings expectations on all four of its most recent earnings reports. Analyst consensus predicts that JBL will announce a $1.38 EPS for fiscal Q4 next week.

For Q4 of fiscal 2020, Jabil beat analysts’ estimates by a margin of $0.32, reporting an EPS of $0.98. For Q1 of fiscal 2021, JBL's EPS increased to $1.60, beating expectations by a margin of $0.33. For Q2 of fiscal 2021, Jabil posted a decrease in earnings, dropping to $1.27 per share. However, the manufacturing company still beat estimates by a margin of $0.32. For Q3 of fiscal 2021, Jabil reported an EPS of $1.30 and beat expectations by a margin of $0.26.

Jabil stock has increased about 78% year-over-year and is trading up 88% since bottoming at a 52-week low of $31.41 on Oct. 29 last year. Additionally, shares of JBL have grown 38% year-to-date and Jabil stock is currently down just 7% from its Sept. 13 record-high of $63.78. This week, JBL has pulled back to the supportive 80-day moving average. Moreover, Jabil offers a forward dividend of $0.32 and a dividend yield of 0.54%.

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From a fundamental perspective, Jabil stock has an interesting valuation. JBL currently trades at a decent price-earnings ratio of 15.56. Jabil stock also has an excellent forward price-earnings ratio of 10.32. Overall, Jabil stock has strong potential as a value play for long-term investors.

It looks like Jabil stock may be overdue for a fresh round of bear notes, however. Heading into today, four of the seven covering brokerages sport a "strong buy" recommendation, with zero "sells" in sight.

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