Jabil (JBL) Valuation Recheck After AI Rotation, Cooling Constraints and New Growth Investments

Jabil (JBL) just got caught in the latest market rotation, sliding after investors stepped back from AI exposed manufacturers. But that pullback is colliding with a busy stretch of operational and governance developments.

See our latest analysis for Jabil.

Despite the latest 5.1% one day share price drop to about $222, Jabil still shows strong momentum, with a roughly mid 50s year to date share price return and a powerful multi year total shareholder return above 400%. This suggests investors are reassessing timing rather than abandoning the long term story.

If you are weighing Jabil’s AI exposed upside against broader tech opportunities, this is a good moment to scan other high growth tech and AI names with high growth tech and AI stocks.

So with shares still up strongly this year, a modest discount to price targets, and big 2026 to 2027 projects in the pipeline, is Jabil quietly undervalued, or is the market already pricing in that next leg of growth?

Most Popular Narrative Narrative: 9.5% Undervalued

Jabil's most followed narrative pegs fair value modestly above the recent 222 dollars close, framing upside around multi year growth and capital returns.

The analysts have a consensus price target of $227.5 for Jabil based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $256.0, and the most bearish reporting a price target of just $176.0.

Read the complete narrative.

Curious what kind of earnings ramp, margin rebuild, and share count shrink could justify that valuation path? Want to see the specific levers and timing?

Result: Fair Value of $245.63 (UNDERVALUED)

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

However, lingering weakness in EV and renewable demand, combined with elevated inventory days, could cap margins and slow the expected earnings ramp.

Find out about the key risks to this Jabil narrative.

Another View Through Market Multiples

Step away from intrinsic models and Jabil looks a lot richer. Its price to earnings ratio sits at 36.2 times, above both the Electronic industry’s 25.8 times and our fair ratio estimate of 31.5 times. This hints the market may already be baking in a lot of good news. Is this premium really worth paying at this stage of the cycle?

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

Build Your Own Jabil Narrative

If our angle does not quite fit your view and you prefer hands on research, you can build a tailored narrative yourself in just minutes: Do it your way.

A great starting point for your Jabil research is our analysis highlighting 2 key rewards and 4 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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