Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Jabil Circuit as such a stock due to the following factors:
- JBL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $96.2 million.
- JBL has traded 1.6 million shares today.
- JBL is up 3.3% today.
- JBL was down 20.5% yesterday.
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More details on JBL:
Jabil Circuit, Inc., together with its subsidiaries, provides electronic manufacturing services and solutions worldwide. The company operates in three segments: Diversified Manufacturing Services, Enterprise & Infrastructure, and High Velocity Systems. The stock currently has a dividend yield of 1.6%. JBL has a PE ratio of 11.7. Currently there are 6 analysts that rate Jabil Circuit a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Jabil Circuit has been 2.9 million shares per day over the past 30 days. Jabil Circuit has a market cap of $4.0 billion and is part of the technology sector and electronics industry. Shares are up 2.2% year-to-date as of the close of trading on Wednesday.
rates Jabil Circuit as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, attractive valuation levels, growth in earnings per share and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 0.6%. Since the same quarter one year prior, revenues rose by 11.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 53.4% when compared to the same quarter one year prior, rising from $82.80 million to $127.02 million.
- JABIL CIRCUIT INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, JABIL CIRCUIT INC reported lower earnings of $1.79 versus $1.87 in the prior year. This year, the market expects an improvement in earnings ($2.35 versus $1.79).
- In its most recent trading session, JBL has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full Jabil Circuit Ratings Report.