Jabil Circuit Inc. (JBL): Today's Featured Technology Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Jabil Circuit ( JBL) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day up 0.3%. By the end of trading, Jabil Circuit fell 30 cents (-1.6%) to $18.50 on average volume. Throughout the day, 3.9 million shares of Jabil Circuit exchanged hands as compared to its average daily volume of 3.5 million shares. The stock ranged in price between $18.42-$18.83 after having opened the day at $18.76 as compared to the previous trading day's close of $18.80. Other companies within the Technology sector that declined today were: Webmedia Brands ( WEBM), down 24.9%, TigerLogic Corporation ( TIGR), down 15.1%, Authentidate Holding Corporation ( ADAT), down 12.3%, and OCZ Technology Group ( OCZ), down 12.2%.
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Jabil Circuit, Inc., together with its subsidiaries, provides electronic manufacturing services and solutions worldwide. Jabil Circuit has a market cap of $3.86 billion and is part of the electronics industry. The company has a P/E ratio of 10, below the S&P 500 P/E ratio of 17.7. Shares are down 4.5% year to date as of the close of trading on Wednesday. Currently there are eight analysts that rate Jabil Circuit a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Jabil Circuit as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, B Communications ( BCOM), up 24.8%, Kingtone Wirelessinfo Solution ( KONE), up 23.9%, Meade Instruments Corporation ( MEAD), up 18.6%, and Interphase ( INPH), up 16%, were all gainers within the technology sector with Broadcom Corporation ( BRCM) being today's featured technology sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

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