AAPL - Why Jabil Has Been And Will Continue To Be A Fantastic Stock
- Jabil stock was up 66% last year, more than double the return of the S&P500. Still, the stock is undervalued and trades at a TTM P/E of only 12.4x.
- The company has focused on higher margin and well-diversified businesses instead of revenue growth simply for growth's sake.
- Jabil is generating strong EPS, margin, and free cash flow growth. FCF in FY21 was $640 million and is expected to reach $700 million in FY22.
- Emerging trends in healthcare, electric vehicles, and 5G/Cloud continue to be strong tailwinds for the company's manufacturing operations.
- Jabil is an under-followed diamond-in-the-rough and could easily trade up to $75 by year-end, a near 25% gain, and still only be an 11.5x multiple on estimated EPS.
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Why Jabil Has Been, And Will Continue To Be, A Fantastic Stock