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Here's How Much a $1000 Investment in Jabil Made 10 Years Ago Would Be Worth Today

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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.

Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.

What if you'd invested in Jabil (JBL - Free Report) ten years ago? It may not have been easy to hold on to JBL for all that time, but if you did, how much would your investment be worth today?

Jabil's Business In-Depth

With that in mind, let's take a look at Jabil's main business drivers.

Headquartered in St. Petersburg, FL, Jabil, Inc., is one of the largest global suppliers of electronic manufacturing services. The company offers electronics design, production, product management and after-market services to customers catering to aerospace, automotive, computing, consumer, defense, industrial, instrumentation, medical, networking, peripherals, storage and telecommunications industries.

Jabil reported revenues of $8,475 million in the third quarter of fiscal 2023.

Beginning fiscal 2015, Jabil has two reporting segments: Electronics Manufacturing Services (EMS) segment and Diversified Manufacturing Services (DMS). The EMS segment includes enterprise and infrastructure, high velocity, and industrial energy businesses whereas the DMS segment will include Jabil’s Nypro and Green Point brands.
 
The EMS segment (49% of third quarter fiscal 2023 revenues) is focused on leveraging IT, supply chain design and engineering, technologies largely centered on core electronics, sharing of large scale manufacturing infrastructure and serving a broad range of end markets. EMS segment is typically a low margin but high-volume business that manufactures products at a quicker cycle time and in larger quantities. The EMS segment includes customers primarily in the automotive, computing, digital home, energy, industrial, networking, printing, storage and telecommunications industries.

The DMS segment (51% of third quarter fiscal 2023 revenues) is focused on providing engineering solutions, heavy participation in consumer markets, access to higher growth markets and a focus on material sciences and technologies. The DMS segment is a high-margin business and includes customers primarily from the consumer lifestyles, health care, mobility and packaging industries.

The company’s largest customers included Apple, Cisco, Hewlett-Packard Company, Keysight Technologies, LM Ericsson, NetApp, Nokia Networks, SolarEdge Technologies, Valeo S.A. and Zebra Technologies.

The company faces significant competition from the likes of Benchmark Electronics, Celestica, Flex, Hon-Hai Precision Industry, Plexus and Sanmina.

Bottom Line

Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Jabil, if you bought shares a decade ago, you're likely feeling really good about your investment today.

A $1000 investment made in July 2013 would be worth $5,174.83, or a gain of 417.48%, as of July 20, 2023, according to our calculations. This return excludes dividends but includes price appreciation.

In comparison, the S&P 500 gained 169.83% and the price of gold went up 48.11% over the same time frame.

Analysts are anticipating more upside for JBL.

Jabil is benefiting from solid demand in key end markets backed by a diverse portfolio and excellent operational execution. Solid net sales growth in DMS vertical driven by strength in automotive, health care and connected devices is a positive factor. Strong emphasis on enhancing productivity through automation and integration of AI and ML technologies is a major tailwind. An established global presence with a worldwide connected factory network enables Jabil to scale production as per the evolving market dynamics. Healthy momentum in solar inverters, smart meters, energy storage & power and building management solutions are driving growth in the industrial business. However, declining trends in the EMS segment and low demand in some consumer-centric markets are weighing on profit. Macroeconomic challenges remain a headwind.

Over the past four weeks, shares have rallied 9.53%, and there have been 5 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.

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