In the past three months, the tech-laden Nasdaq-100 Technology Sector index has lost 16.4% of its value, but Jabil stock is down 2%. Even though there is no company specific information, shares of the Apple supplier have been in recovery mode.

It won’t be surprising to see this tech stock get a nice shot in the arm when Jabil releases its third quarter earnings report on Thursday, June 16. Let’s take 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 to 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 is 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299 888-353-1299

Jabil’s growth has picked up.

Jabil has consistently delivered strong results this fiscal year due to the healthy demand for its services from different sectors such as 5G, automotive, healthcare, networking, connected devices, and healthcare. Fiscal third-quarter revenue is expected to land at $8.2 billion, which is in line with the company’s guidance.

That would increase the year-over-year increase by 14. The company expects non-GAAP earnings of $1.60 per share, which would be a 23% jump over the year-ago quarter’s figure. Analysts have raised their expectations of Jabil. Wall Street is expecting Jabil to report earnings of $1.62 per share and revenue of $8.22 billion.

Solid momentum across its multiple end markets could help Jabil beat Wall Street’s expectations Jabil expects double-digit growth from the healthcare, automotive retail, industrial and semi-cap, and 5G wireless and cloud end markets according to the CFO.

The electric vehicle market is going to be a driver for Jabil. The company says that the adoption of electric vehicles is expected to drive 50%-plus growth in automotive revenue this year. Jabil has applications for electric vehicles. The secular growth opportunity is driving impressive growth in the automotive business, and it should be a long-term tailwind for Jabil, as the global battery management systems market is expected to clock nearly 20% annual growth over the next decade, according to market researcher Fact.

Jabil’s biggest customer, Apple, which accounted for 22% of the company’s top line in fiscal 2021, is another reason the company’s results and guidance may turn out to be better than expected. The overall market for phones was down in the first quarter of 2022, but Apple sold more of their phones. The company has been able to negotiate the supply chain challenges and is on track to produce 250 million iPhones in 2022, according to third-party estimates.

It is thought that Apple could produce 300 million iPhones this year, though that seems a tad aggressive because of the supply chain constraints. In 2022, Apple’s iPhone shipments are expected to go up. Apple shipped an estimated 236 million iPhones last year, so the growth in shipments of its largest customer should rub off on Jabil, as it supplies aluminum for the devices.

The stock is an excellent buy.

Jabil could back its numbers up with robust guidance, and it looks like it will deliver another quarter of impressive growth. The five-year average earnings multiple for Jabil is 38, but the stock is now trading at 10 times earnings. The forward earnings multiple of 7.7 points to an improvement in the company’s bottom line.

That’s why investors looking to buy a value stock might want to take a closer look at Jabil before it releases its earnings, as a solid showing could send its shares soaring and make the stock relatively more expensive.

There is no position in any of the stocks mentioned. There are positions in and recommendations for Apple by The Fool. The long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple are both recommended by The Motley Fool. There is a disclosure policy at The Motley Fool.

No one has a position in any of the stocks mentioned. There are positions in and recommendations for Apple by the Motley Fool. The long March 2023 $120 calls on Apple are recommended by The Motley Fool. The disclosure policy of The Motley Fool is outlined.