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Jabil Inc. reports earnings June 14

What's Happening

Jabil Inc. ( JBL ) is expected to release its fiscal third-quarter numbers after the market close June 14. The consensus calls for earnings of $0.45 per share, up from $0.31 during the same period last year. JBL stock has risen 8.9% on the year.

Technical Analysis

JBL was recently trading at $29.07, down $2.70 from its 12-month high and $5.37 above its 12-month low. Technical indicators for JBL are bullish with a weak upward trend. The stock has recent support above $28.00 and recent resistance below $29.50. Of the seven analysts who cover the stock, two rate it a "strong buy", and five rate it a "hold". JBL gets a score of 60 from InvestorsObserver's Stock Score Report.

Analyst's Thoughts

A strong underlying economy has driven Jabil's earnings growth in recent years, with the company showing average annual earnings growth of 10.8% over the last five years and analysts forecast earnings will rise 12.0% per annum over the next five years. The company has a solid earnings track record with better than expected numbers on the top and bottom line in each of the last nine quarters. The street expects that streak to continue, with a whisper number of 48 cents per share for the recent quarter… three pennies above the consensus. JBL has a low forward P/E of just 9.97, so there is still plenty of upside potential as long as the company is able to report quarterly numbers in-line or better than expected. Analysts have a $33.67 average price target on the stock.

Stock Only Trade

Bullish Trade

If you want a bullish hedged trade on the stock, consider a September 21/26 bull-put credit spread for a 40-cent credit. That's a potential 8.7% return (30.2% annualized*) and the stock would have to fall 9.8% to cause a problem.

Bearish Trade

If you want to take a bearish stance on the stock at this time, consider a September 32/37 bear-call credit spread for a $0.40 credit. That's a potential 8.7% return (30.2% annualized*) and the stock would have to rise 11.5% to cause a problem.

Covered Call Trade

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Originally published on InvestorsObserver.com


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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