For investors aiming to profit from momentum, a method that joins solid core business expansion with positive technical price movement can be an effective tactic. The process requires first finding companies with sturdy and quickening fundamentals, specifically, solid expansion in earnings and revenue, along with firm profitability and financial condition. This base filter confirms the stock has a convincing business story. The next step uses technical study to locate those fundamentally healthy stocks that are also displaying helpful price formations, like pauses near peaks or advances past important resistance points, hinting at institutional buying and a greater chance of continued upward movement. This two-step filter tries to locate chances where fundamental power and market feeling are in agreement.
Jabil Inc (NYSE:JBL) appears as a candidate that matches this joined growth-and-momentum model. As a top worldwide manufacturing solutions company, Jabil works with a wide array of high-expansion industries including cloud infrastructure, automotive, healthcare, and renewable energy. This place in growing final markets gives the qualitative setting for its quantitative positives.
Fundamental Expansion and Power
A look at Jabil’s fundamental analysis report shows a picture that fits the main needs for a growth stock. The company gets a firm Growth Rating of 7/10, supported by notable earnings growth and positive future estimates.
- Earnings Expansion: Jabil has shown considerable bottom-line growth, with Earnings Per Share (EPS) rising by 35.1% over the last year. The longer-term history is also firm, showing an average yearly EPS growth of 27.5% over recent years.
- Future Estimates: This movement is projected to persist, with analysts predicting future EPS growth of about 17.7% each year. Revenue expansion, which was a sturdy 13.2% last year, is also estimated to rise to nearly 9% each year moving ahead.
- Profitability and Condition: Backing this expansion is a high Profitability Rating of 8/10. Important measures like Return on Invested Capital (ROIC) of 24.7% are some of the top in its field, showing very efficient use of capital. The Financial Health Rating of 5/10 shows a varied image; while the company has a firm solvency place with a healthy debt-to-free-cash-flow ratio, investors should be aware of its somewhat low liquidity ratios (Current and Quick Ratio), which are typical in asset-light manufacturing plans but need watching.
This fundamental image is key for the tactic because lasting price movement is often built on a base of real business results. Firm, quickening earnings give the energy that can push a stock upward over the long term, making the technical advance more significant.
Technical Movement and Position
The convincing fundamental story is reflected in Jabil’s price movement. The stock gets a top-level Technical Rating of 10/10 from ChartMill, with a supportive Setup Rating of 8/10. The technical analysis report describes a chart showing firm positive features.
- Trend Power: Both the long-term and short-term trends are clearly positive, with the stock trading well above its important moving averages (20, 50, 100, and 200-day SMAs), which are all pointing upward.
- Market Performance: Jabil is showing notable relative power, doing better than 91% of all stocks in the market over the past year and 71% of its field competitors. It is currently trading near its 52-week high, a mark of continued demand.
- Helpful Pause: After a large rise, the stock has been pausing in a band between about $227 and $269 over the past month, letting it absorb its gains. This drop in instability often comes before the next directional move. The position is further supported by a recent "Pocket Pivot" signal, a formation that shows buying, where the stock moves up on greater volume than any down volume day in the earlier period, hinting at institutional purchase.
The existence of this technical position is what the tactic actively looks for. It hints that the market is seeing the fundamental expansion story and that the stock is being bought, raising the chances that an advance above the current resistance area (near $265) could lead to a new step upward.
Valuation Setting
With firm expansion and movement often comes a question of price. Jabil’s Valuation Rating is a neutral 5/10. Its Price-to-Earnings (P/E) ratio of about 24.7 matches the wider S&P 500 and is actually less expensive than about 70% of its field competitors. When thinking about its expansion rate through the PEG ratio, the valuation seems more acceptable. For growth investors, paying a fair or small extra for a company with Jabil’s expansion path and market performance can be acceptable, especially when the technical position hints the trend stays in place.
Conclusion
Jabil Inc presents a situation where fundamental expansion forces and technical movement seem to be meeting. The company’s firm earnings growth, high profitability, and place in important future fields give a solid business base. At the same time, its stock chart shows considerable positive trends, relative power, and a helpful pause formation near peaks, showing continued investor attention.
This agreement is exactly what the joined growth-and-momentum filtering process tries to find: companies where improving business fundamentals are being verified by the market’s price movement, possibly giving a positive risk/reward situation for investors focused on capital gain.
Interested in finding more stocks that match this profile? You can use the "Strong Growth Stocks with good Technical Setup Ratings" filter yourself to see other possible chances by using this link.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer or solicitation to buy or sell any securities. The analysis is based on data and reports provided by third parties. Investing involves risk, including the potential loss of principal. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
