How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Jabil (JBL) ten years ago? It may not have been easy to hold on to JBL for all that time, but if you did, how much would your investment be worth today?
Jabil's Business In-Depth
With that in mind, let's take a look at Jabil's main business drivers.
Headquartered in St. Petersburg, FL, Jabil, Inc. is one of the largest global suppliers of electronic manufacturing services. The company offers electronics design, production, product management and after-market services to customers in the aerospace, automotive, computing, consumer, defense, industrial, instrumentation, medical, networking, peripherals, storage and telecommunications industries.
The company reported revenues of $28.9 billion in fiscal 2024.
Jabil has reorganized its internal structure, and beginning fiscal 2025, the company is set to report its quarterly numbers under three reporting segments: Regulated Industries, Intelligent Infrastructure, Connected Living & Digital Commerce.
Regulated Industries (42.6% of fiscal 2024 net sales): The segment primarily focuses on developing high-quality manufacturing products for automotive & transportation, renewables & energy infrastructure, and healthcare end markets.
Intelligent Infrastructure (31.8%): The segment’s portfolio includes products related to capital equipment, networking & communications, and cloud & data center infrastructure end markets.
Connected Living & Digital Commerce (25.6%): The segment offerings include various consumer-facing products under the connected living end market and retail & warehouse automation products in the digital commerce end market.
The company’s largest customers are Apple, Cisco, Hewlett-Packard Company, Keysight Technologies, LM Ericsson, NetApp, Nokia Networks, SolarEdge Technologies, Valeo S.A. and Zebra Technologies.
Jabil faces significant competition from the likes of Benchmark Electronics, Celestica, Flex, Hon-Hai Precision Industry, Plexus and Sanmina.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Jabil a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in February 2015 would be worth $7,717.71, or a 671.77% gain, as of February 12, 2025, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
The S&P 500 rose 193.37% and the price of gold increased 127.88% over the same time frame in comparison.
Analysts are forecasting more upside for JBL too.
Jabil is benefiting from solid demand in key end markets, excellent operational execution and skillful management of supply chain dynamics. The company is expected to gain from the rapid adoption of 5G wireless and cloud computing in the long haul. A higher free cash flow indicates efficient financial management practices, optimum utilization of assets and improved operational efficiency. Management’s focus on integrating sophisticated AI and ML capabilities to enhance the efficiency of its internal process is a major tailwind. However, Jabil operates in a highly competitive environment, facing competition from both domestic and international electronic manufacturers. Demand softness in some consumer-centric markets is negatively impacting its margins. The rising trade spat between the United States and China remains another headwind.
The stock is up 7.28% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 3 higher, for fiscal 2025. The consensus estimate has moved up as well.Zacks Names #1 Semiconductor Stock
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Jabil, Inc. (JBL) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
