Trade-Ideas LLC identified

Jabil Circuit

(

JBL

) as a strong on high relative volume 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 $46.5 million.
  • JBL has traded 1.7 million shares today.
  • JBL is trading at 28.37 times the normal volume for the stock at this time of day.
  • JBL is trading at a new high 14.00% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on JBL:

Jabil Circuit, Inc., together with its subsidiaries, provides electronic manufacturing services and solutions worldwide. The stock currently has a dividend yield of 1.7%. JBL has a PE ratio of 2. Currently there are 5 analysts that rate Jabil Circuit a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Jabil Circuit has been 1.8 million shares per day over the past 30 days. Jabil Circuit has a market cap of $3.7 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.62 and a short float of 2.5% with 2.28 days to cover. Shares are down 10.7% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Jabil Circuit as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and generally higher debt management risk.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 6.4%. Since the same quarter one year prior, revenues rose by 15.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Net operating cash flow has increased to $357.50 million or 30.10% when compared to the same quarter last year. In addition, JABIL CIRCUIT INC has also modestly surpassed the industry average cash flow growth rate of 29.29%.
  • 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 swung to a loss, reporting -$0.03 versus $1.54 in the prior year. This year, the market expects an improvement in earnings ($2.00 versus -$0.03).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 61.6% when compared to the same quarter one year ago, falling from $188.26 million to $72.20 million.
  • JBL has underperformed the S&P 500 Index, declining 6.52% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.

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