Jabil's stock is currently trading at $72.87 with key resistance at $73.86. Financials are strong and support seems to be established.

Overview

American corporation Jabil Inc. provides manufacturing services globally. It is one of the biggest businesses in the Tampa Bay area and has its headquarters in St. Petersburg, Florida's Gateway neighbourhood. Jabil employs 260,000 people worldwide across its 100 factories in 30 different countries.

 

Financials

Looking at the financial year ending in August 2022 versus 2021. Total revenue rose to $33.5bn from $29.3bn and gross profit rose from $2.35bn to $2.6bn. After taxes and operating expenses, net income totalled $996m in 2022 compared to $696m in 2021 and EBITDA also rose to $2.3bn from $1.9bn. As a result, earnings per share were reported at $7.06 in 2022, a $2.37 increase year-on-year. Furthermore, total assets grew to $19.7bn from $16.6bn as current assets rose by just over $3bn. Total liabilities increased by $2.7bn, but the slightly bigger increase in assets offsets this difference. Meaning, the total equity of the company went up by $315m year-on-year.

Technicals

From a technical overview, Jabil’s share price is currently sitting around $72.87 a share. On the daily timeframe, support seems to be established below along the green ascending trendline with support levels at $71.98 then at $71.58 then at $71.16. A break below these levels could see its share price pierce through the support trendline and slide towards the $68-$69 price range. On the other hand, towards the upside, if the positive momentum was to continue, resistance sits at $73.33 then a key level at $73.86. A break above the key level may see Jabil’s stock climb towards the $75-$76 price range. Looking at the technical indicators, MACD seems flat suggesting a neutral stance and RSI is positive as it reads 66. Although, important to note, RSI is floating just below ‘overbought’ territory, suggesting there may be a slight dip before bouncing higher.

Summary

Overall, the financials of the company are solid as it demonstrates gradual progress year-on-year. The equity of the company continues to grow and the balance between assets and liabilities is well-operated as it stands. The stock seems to be positive with potential for more upside in the near future, indicators are currently neutral/positive with key resistance above at $73.86. Jabil is expected to report its quarterly earnings tomorrow, hence, a positive report could provide the boost to break through the key resistance level. However, investors should be wary as a negative report may knock the stock’s momentum, leading to a short-term bearish move.