On Jun 27, 2014, Zacks Investment Research upgraded
Jabil Circuit Inc (
to a Zacks Rank #1 (Strong Buy). With a strong return of 22.6% over
the past one year, improving outlook and a positive estimate
revision trend, Jabil is an attractive investment opportunity.
Why the Upgrade?
The upgrade was primarily based on better-than-expected
third-quarter 2014 results. Although Jabil reported a loss of 13
cents per share, it was narrower than the Zacks Consensus Estimate.
Revenues of $3.79 comfortably beat the Zacks Consensus Estimate.
Jabil Q3 Loss Narrower-than-Expected; 2015 Outlook
Jabil expects net revenue to be in the range of $3.7 to $3.9
billion for the fourth quarter of fiscal 2014. The company expects
to report loss of 10 cents or earnings of 10 cents for the fourth
Although the Blackberry disengagement is expected to affect the
results over the next couple of quarters, we believe that strong
performance from the Nypro acquisition, higher restructuring
benefits and customer wins will boost overall results in 2015.
Jabil forecasts fiscal 2015 earnings to be in the range of $1.65 to
$1.95 per share, driven by improving business trends and new
bookings. The company is expected to benefit from the upcoming
Positive Estimate Revisions
The Zacks Consensus Estimate for fiscal 2014 surged 43.8% (14
cents) to 46 cents per share as most of the estimates were revised
higher over the last 7 days. For fiscal 2015, the Zacks Consensus
Estimate increased 2.1% (3 cents) to $1.48 per share.
The long-term expected earnings growth rate for Jabil is 12.0%.
Other Stocks to Consider
Investors interested in technology stocks may consider
Ciena Corp (
Brightcove Inc (
. All these stocks sport a Zacks Rank #1.
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
APPLE INC (AAPL): Free Stock Analysis Report
CIENA CORP (CIEN): Free Stock Analysis Report
JABIL CIRCUIT (JBL): Free Stock Analysis Report
BRIGHTCOVE (BCOV): Free Stock Analysis Report
To read this article on Zacks.com click here.