Jabil Inc. ( JBL ) will report fiscal fourth-quarter numbers before the market open September 25, with the consensus calling for earnings of $0.59 per share. During the same period last year the company earned $0.64 per share, and the stock has risen 11.4% on the year.
JBL was recently trading at $29.99 down $1.78 from its 12-month high and $6.29 above its 12-month low. InvestorsObserver's Stock Score Report gives JBL a 59 long-term technical score and an 84 short-term technical score. The stock has recent support above $29 and recent resistance below $30.50. Of the 6 analysts who cover the stock 2 rate it Strong Buy, 0 rate it Buy, 4 rate it Hold, 0 rate it Sell, and 0 rate it Strong Sell. JBL gets a score of 73 from InvestorsObserver's Stock Score Report.
JBL has been stuck in a sideways trend for the last several months, but the stock is currently at the upper end of its trading range and could break out to the upside on the heels of a better than expected set of quarterly numbers. The street expects a small earnings beat, with a whisper number of $0.70 for the quarter which should be enough to help the stock build on its recent momentum moving ahead. JBL has topped estimates on the top and bottom line in each of the last nine quarters. The stock has a low valuation, with a forward P/E of just 10, and the low valuation combined with forecast earnings growth of 23% for the current year should allow the stock to move higher as long as the company is able to hit its future estimates. Analysts have an average price target of $33.50 on the stock.
Stock Only Trade
If you want a bullish hedged trade on the stock, consider a 12/21/18 22/27 bull-put credit spread for a $0.35 credit. That's a potential 7.5% return (30.2% annualized*) and the stock would have to fall 11.2% to cause a problem.
If you want to take a bearish stance on the stock at this time, consider an 12/21/18 34/39 bear-call credit spread for a $0.25 credit. That's a potential 5.3% return (21.1% annualized*) and the stock would have to rise 14.1% to cause a problem.
Covered Call Trade
Originally published on InvestorsObserver.com