The USD 16.6 support, currently tested, should allow Jabil Circuit to rally again.
From a fundamental viewpoint, Jabil Circuit is undervalued in terms of enterprise value. Based on the current price, its market capitalization, plus its net debt, represents 0.21 times its revenues.
This valuation is just 8.69 and 7.45 times the two next years earnings.
Technically, the security fell sharply for several weeks. This fall has lead Jabil Circuit towards the USD 16.6 support area which could become useful as a stepping stone for a technical rebound. The target of this bullish trend is the USD 18 resistance. Even though moving averages are still in a bearish trend, the oversold situation could encourage a renewed interest in Jabil Circuit.
Considering technical and fundamental elements, it seems to be an appropriate timing to take immediately a long position in Jabil Circuit in order to benefit from the USD 16.6 support area. A first target price will be the USD 18 resistance. A stop loss order will be placed under the mid-term support currently tested.
Jabil Inc. specializes in electronic outsourcing services. Net sales break down by activity as follows:
- development of engineering solutions and services in the field of materials technology (51.7%): engineering, machining and manufacturing solutions for products made of plastics, metals, fibers and glass, and composite materials, etc. for consumer electronics, wearable technology, aeronautics, defense, health, mobility and packaging industries;
- design, engineering, mass production and assembly of electronic systems and subsystems (48.3%): for the automotive, transportation, heavy equipment, computer, home automation, energy, telecommunications, networking, distribution and printing industries. The group also offers 3D printing, prototyping and testing services, as well as supply chain management solutions and services.
Net sales are distributed geographically as follows: the United States (14.2%), Singapore (21.3%), Mexico (17.5%), China (16.9%), Malaysia (8%), India (4.6%) and other (17.5%).
JABIL INC. 
