Jabil (JBL): Revisiting Valuation Following Zacks Spotlight and New AI Infrastructure Expansion

If you are trying to figure out what to do next with Jabil (JBL), you are not alone. This stock's recent spotlight by Zacks Investment Research and its expanded partnership with Endeavour Energy have investors paying close attention. The value narrative here is tough to ignore. Zacks underscored Jabil’s favorable valuation metrics and strong earnings outlook, while the company is doubling down on advanced AI infrastructure, hinting at new growth pathways. For anyone watching the tech sector, these moves bring a fresh twist to Jabil's story and a possible inflection point for its shares. Looking at Jabil's performance, momentum has certainly been building over the past year. Despite pockets of risk in renewable energy and electric vehicles, shares have climbed 100% in twelve months and are up more than fivefold in five years. Alongside that, the company continues to report revenue and profits on the rise, with annual net income growth well over 20%. The latest collaboration in the AI space could serve as yet another growth lever in an already impressive run. So with all of this in play, is Jabil now an undervalued AI upstart in the making, or has the stock’s surge already captured the best of what’s ahead?

Most Popular Narrative: 6.2% Undervalued

The most popular narrative from analysts and market watchers is that Jabil is currently undervalued relative to its projected growth, based on a fair value assessment that anticipates multiple catalysts driving future results.

Jabil's significant U.S. manufacturing footprint positions it well to benefit from potential tariff changes. This allows the company to maintain and possibly grow revenue through strategic relocation of manufacturing activities. The expansion in India, particularly in Gujarat to support photonics capabilities, indicates growth potential in a promising market and may enhance future revenues from domestic demand and infrastructure projects.

Want to know what’s fueling this bullish outlook? These fair value estimates hinge on aggressive bottom line growth and a future earnings multiple typically reserved for market leaders. Curious which forward-looking assumptions and hidden levers drive this optimistic calculation? Get the full story to uncover the engine behind these projections.

Result: Fair Value of $227.5 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent weakness in key segments and ongoing tariff uncertainties could limit Jabil's near-term revenue growth and challenge this optimistic outlook.

Find out about the key risks to this Jabil narrative.

Another View: Market Comparison Raises Questions

Looking from a different angle, market pricing measures suggest Jabil could actually be on the expensive side compared to its industry, even though fair value models point to potential upside. Can both perspectives be right, or is the answer found in today's premium?

See what the numbers say about this price — find out in our valuation breakdown.

Stay updated when valuation signals shift by adding Jabil to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Jabil Narrative

If you see things differently or want to dig into the numbers yourself, crafting your own take is quick and straightforward. Do it your way.

A great starting point for your Jabil research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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