Contract manufacturers like Jabil are in demand. A variety of industries including chip and auto makers are increasingly relying on them to make their goods. And Jabil is one of the few U.S.-based contract manufacturers. That gives it an even stronger edge as global competition heats up, especially with China. On Wednesday, Jabil stock's Relative Strength (RS) Rating shot up 11 points to a solid 85.
The new 85 RS Rating means that Jabil stock price is performing in the top 15% of all companies, regardless of industry group. Why is the rating hike important? Market research shows that the best stocks tend to have an 80 or higher RS Rating in the early stages of their moves.
Jabil Stock Shoots Past Milestone
Jabil stock near the end of December rose to a 72.11 high. That surpassed its previous all-time high 68, set in September 2000 just before the dot-com crash. So far this year Jabil has tried to hold its own amid the recent market pullback. Still, its stock had fallen to 58.50 Wednesday afternoon, down more than 4% for the day.
Jabil stock's 85 RS Rating is impressive but its Composite Rating of 92, of a best-possible 99, is even more impressive.
The IBD Composite Rating combines five separate proprietary IBD ratings, based on key fundamental and technical criteria, into one easy-to-use score. The best growth stocks have a Composite Rating of 90 or better.
Among its other key ratings Jabil has a terrific 95 EPS Rating. Jabil stock has a middling C- Accumulation/Distribution Rating on an A+ to E scale.
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Jabil stock is building a consolidation with a 72.21 buy point. See if it can break out in heavy volume.
Earnings grew 32% last quarter to $1.68 per share, up from 20% growth in the prior report. Revenue growth also increased, from 9% to 11%, or $7.55 billion. Keep an eye out for the company's next round of numbers on or around June 17.
Jabil Exits Russia, Aids Ukraine
The company's revenue and earnings may have taken a hit last quarter as Jabil, like most other American companies, withdrew from Russia. The company says it ceased operations at its site in Tver, Russia, where it had employed 90 people. It added on its website that it's supporting its employees in Ukraine with humanitarian aid and helping refugees leave the country and get settled elsewhere for now.
Jabil stock earns the No. 2 rank among its peers in the Electronics-Contract Manufacturing industry group. Celestica and Nortech Systems are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, be sure to pay attention to relative price strength.
IBD's unique Relative Strength Rating measures price movement with a 1 (worst) to 99 (best) score. The score shows how a stock's price performance over the trailing 52 weeks stacks up against all the other stocks in our database.
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