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.
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.
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
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.
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
Originally published on InvestorsObserver.com