Watch Jabil Inc. (JBL) For Long Term! ROE + Technical Analysis
$Jabil Circuit(JBL)$ has gained more than 1% in yesterday trading, and over the past 1 year, Jabil’s stock has seen significant fluctuations, hitting a low point at $55.36 and reaching as high as $127.35 within that period.
Jabil maintains healthy financial ratios, including a debt-to-equity ratio of 1.00, indicating moderate leverage within its capital structure.
Even though Jabil has achieved a return on equity of 28.53%. We need to be aware that this metric is skewed due to their high level of debt.
Jabil is expected to post earnings per share (EPS) of 8.65 for the current year. I would be more interested to see if it is currently trading below its estimated fair value.
Jabil Fair Value
JBL ($128.87) is trading below the estimated fair value ($297.63) and this is more than 20% below the fait value.
There is also a quick ratio of 0.59 and a current ratio of 1.16, suggesting sufficient liquidity to meet short-term obligations.
I would be more interested to see how its price is trading based on Technical Analysis.
Technical Analysis - Simple Moving Averages (SMA) - 50-day Period
Jabil is currently trading way above its 50-day MA period, which does not show any signs of a downside, but with there strong performance delivered in their earnings results on 28 Sep, I believe Jabil has the ability to generate higher returns to shareholders.
Technical Analysis - Average Directional Index (ADX)
ADX is between 20 and 40 indicating a developing trend, with +DI above -DI by a huge margins, suggesting that Jabil is going through a bullish upside.
There might be some fluctuations coming, but I believe it should be towards the positive side.
Technical Analysis - Relative Strength Index (RSI)
Jabil RSI has entered into the overbought region, this would mean that extended price have move to the upside.
When price hit these levels, a potential reversal might be in sight.
Summary
While we could see significant fluctuation from its trading, Jabil still have solid financial ratios and robust insider ownership, this would help them to be well positioned for future growth and continued success in the market.
Based on its fair value and what technical analysis have shown me, I would monitor its trading today (03 Oct 23) for opportunity as RSI has shown potential reversal happening.
50-day period and ADX has shown developing and bullish upside movement expected.
Appreciate if you could share your thoughts in the comment section whether you think Apple would be able to recover its position and move above the 50-Day period after its iPhone 15 launch.
@TigerStars @Daily_Discussion @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.
Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
JBL traded at $129.10 today, after earnings, and the Calls went up from $2.17 to $20.00 intraday, for a fantastic 9.20X gain! Congrats to those who bought the calls!
This company is going up. All the greatest companies have the same trend. It doesn't matter what point you get in, it's obviously trending upwards STRONGLY. Something like that doesn't just go to 0. This is HIGH value stock and undervalued. To the moon!
JBL will be sabotaged by the senile warmongering Biden regime of saboteurs just as he sabotaged Nord Stream pipelines, Kursk bridge, Democracy in Pakistan, Pacific Ocean seafood, and most US high tech companies.
Big differences between jbl and Karp. I am long both.
CANT WAIT till market open let's gooooo! BULLISH!