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 Jabil Circuit ( JBL) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) 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 $61.6 million.
- JBL has traded 1.3 million shares today.
- JBL traded in a range 201.6% of the normal price range with a price range of $1.17.
- JBL traded below its daily resistance level (quality: 29 days, meaning that the stock is crossing a resistance level set by the last 29 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower. EXCLUSIVE OFFER: Get the inside scoop on opportunities in JBL with the Ticky from Trade-Ideas. See the FREE profile for JBL NOW at Trade-Ideas 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 1.3%. JBL has a PE ratio of 15.0. Currently there are 8 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 1.7 million shares per day over the past 30 days. Jabil Circuit has a market cap of $4.8 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.93 and a short float of 2.5% with 1.57 days to cover. Shares are up 22.9% year to date as of the close of trading on Wednesday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant 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, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- JBL's revenue growth has slightly outpaced the industry average of 4.8%. Since the same quarter one year prior, revenues slightly increased by 5.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has significantly increased by 170.53% to $504.00 million when compared to the same quarter last year. In addition, JABIL CIRCUIT INC has also vastly surpassed the industry average cash flow growth rate of -0.25%.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. 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.
- JABIL CIRCUIT INC's earnings per share declined by 50.0% 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 increased its bottom line by earning $1.87 versus $1.73 in the prior year. This year, the market expects an improvement in earnings ($2.24 versus $1.87).
- You can view the full Jabil Circuit Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.