AI-Fueled Apple Partner Engineers New Buy Point. Then This Happens.

From Apple (AAPL) and Amazon.com (AMZN) to Cisco Systems (CSCO), Tesla (TSLA), General Motors (GM) and beyond, major brands work with engineering and supply chain management firm Jabil (JBL) across a wide range of industries. After resetting its base count last month, Jabil stock stood poised to break out to a record high, but ran into resistance as the Nasdaq composite sold off Thursday.

With a 96 Composite Rating out a best-possible 99, Jabil ranks among the leaders in Investor’s Business Daily’s Electronics-Contract Manufacturing group. The group ranks a stellar No. 6 out of the 197 industries IBD tracks. Other highly rated peers include Celestica (CLS), Fabrinet (FN) and TTM Technologies (TTMI). Each of these stocks also took a hit but Thursday but showed resilience on Friday.

Jabil Sparks Strong Rebound And Rising Demand

Based in St. Petersburg, Fla., Jabil has a global footprint, offering engineering, manufacturing, and supply chain solutions. It works across a vast array of industries, including robotics, data centers, aerospace, automotive, health care, energy and more. Artificial intelligence plays a key role in Jabil’s focus on process optimization, predictive maintenance, risk mitigation, AI assistants and more.

In addition to relationships with Apple, Amazon, GM, Cisco and Tesla, the company also works with tech leaders like Dell Technologies (DELL), Johnson & Johnson (JNJ), NetApp (NTAP) and a host of others.

Jabil has posted three quarters of accelerating sales and earnings growth. On Sept. 25, sales growth also eclipsed $8.25 billion for the fiscal fourth quarter, marking an 18% year-over-year rise. Earnings growth spiked 43% to $3.29 per share.

When Jabil next reports quarterly performance on Dec. 11, analysts expect 14% revenue growth to just over $8 billion and an earnings increase of 35% to $2.69 per share.

Signaling demand for shares, Jabil sports a 1.1 up/down volume ratio and four quarters of rising fund ownership. Further, 64 funds with an A+ rating from IBD own shares of the AI-fueled stock.

Jabil Stock Seeks Support For New Breakout

Having reset its base count last month by undercutting the low in its prior pattern, Jabil stock continues to craft a first-stage cup with handle. The buy point is 229.23.

On Wednesday, the stock jumped back above its 50-day moving average. And in another sign of rebounding technical strength, the shorter-term 21-day exponential moving average stands poised to climb back above the longer-term 50-day benchmark.

But on Thursday, Jabil stock  fell nearly 6%, retreating sharply below the 50-day line as its relative strength line also turned lower. On Friday, it showed enough resilience to mitigate the day’s losses and close essentially flat.

Partner Tesla stock is showing similar action, while Apple continues to trade right around its all-time high.

Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.

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