Highlighted Post-Market Laggard: Jabil Circuit (JBL)

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.

Trade-Ideas LLC identified Jabil Circuit ( JBL) as a post-market laggard 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 $64.5 million.
  • JBL is down 4.7% today from today's close.

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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 1.4%. JBL has a PE ratio of 24. 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 1.7 million shares per day over the past 30 days. Jabil Circuit has a market cap of $4.4 billion and is part of the technology sector and electronics industry. The stock has a beta of 0.53 and a short float of 1.9% with 1.19 days to cover. Shares are up 3.5% year-to-date as of the close of trading on Wednesday.

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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, good cash flow from operations, solid stock price performance, impressive record of earnings per share growth and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 0.1%. 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 vastly surpassed the industry average cash flow growth rate of -28.89%.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
  • 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 return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, JABIL CIRCUIT INC's return on equity is below that of both the industry average and the S&P 500.

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