Jabil Circuit Inc. (JBL): Electronics' Featured Underachiever Of The Day

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 Electronics industry lower today making it today's featured Electronics laggard. The industry as a whole closed the day up 0.8%. By the end of trading, Jabil Circuit fell 20 cents (-1.1%) to $18.11 on average volume. Throughout the day, three million shares of Jabil Circuit exchanged hands as compared to its average daily volume of 2.7 million shares. The stock ranged in price between $17.88-$18.30 after having opened the day at $18.30 as compared to the previous trading day's close of $18.31. Other companies within the Electronics industry that declined today were: Vimicro International Corporation ( VIMC), down 9.9%, Daystar Technologies ( DSTI), down 7%, Meade Instruments Corporation ( MEAD), down 6%, and M/A-COM Technology Solutions Holdings ( MTSI), down 5.9%.
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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 $3.72 billion and is part of the technology sector. The company has a P/E ratio of 10.3, below the S&P 500 P/E ratio of 17.7. Shares are down 5.1% year to date as of the close of trading on Friday. 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, attractive valuation levels, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Suntech Power Holdings ( STP), up 15.6%, Rubicon Technology ( RBCN), up 13.3%, Advanced Micro Devices ( AMD), up 13.1%, and Canadian Solar ( CSIQ), up 9.5%, were all gainers within the electronics industry with Broadcom Corporation ( BRCM) being today's featured electronics industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the electronics industry could consider iShares Dow Jones US Technology ( IYW) while those bearish on the electronics industry could consider ProShares Ultra Short Semiconductor ( SSG).

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