Jabil (JBL) is back in focus after reporting second quarter results with higher sales and net income than a year earlier, and pairing that update with raised revenue and core EPS guidance for fiscal 2026.
See our latest analysis for Jabil.
Despite a small 1 day share price decline, Jabil’s recent 90 day share price return of 11.12% sits alongside a 1 year total shareholder return of 92.30% and a 5 year total shareholder return above 4x. This suggests momentum has been strong over both shorter and longer horizons as investors react to higher earnings and raised guidance.
If Jabil’s recent move has you thinking about what else is gaining attention in automation and electronics, it is worth scanning 32 robotics and automation stocks
With the share price up sharply over 1 and 5 years, a value score of 3, and a last close of US$261.10 against an analyst target of about US$293, you now have to ask: is Jabil still underrated, or are markets already pricing in future growth?
Most Popular Narrative: 11.6% Undervalued
According to Vestra, the most followed narrative pegs Jabil’s fair value at $295.50, above the last close of $261.10, framing recent weakness as a valuation reset.
The fair value of $295.50 USD remains my target. Ironically, the "Earnings Bomb" improved the math; by raising the 2026 EPS to $12.25, the company increased its intrinsic worth while the market decreased its price. At $239.87, the stock is now trading at a 23% discount to its fair value. This suggests that the sell-off was a "clearing event" that removed the speculative froth, leaving behind a fundamentally stronger and significantly cheaper company.
Want to see how this fair value is built? The narrative leans on higher earnings power, richer margins and a bolder mix shift toward infrastructure and AI, with specific growth paths that are not obvious from headline numbers alone.
Result: Fair Value of $295.50 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this hinges on AI infrastructure demand staying resilient, and on supply chain or logistics issues not biting harder into margins or delaying high value projects.
Find out about the key risks to this Jabil narrative.
Another View: What Earnings Multiples Are Saying
That 11.6% undervaluation hinges on fair value estimates, but the current P/E of 34.1x tells a more cautious story. It is slightly above the 33.7x fair ratio and above the US Electronic industry on 28.8x, even though it sits below peer averages of 41.2x. Is the market offering a margin of safety, or asking you to pay up for quality?
To see how those earnings multiples compare in more detail, and what they might indicate about valuation risk or opportunity, check out the See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
With strong opinions on both sides of the Jabil story, it makes sense to look at the underlying data yourself and not just the headlines. To help you weigh the upside against the downside, take a closer look at the 3 key rewards and 2 important warning signs.
Looking for more investment ideas?
If Jabil has sharpened your focus on quality, do not stop here. Use targeted stock lists to spot opportunities that fit your goals before others move first.
- Target reliable cash generators and income potential with 12 dividend fortresses that might appeal if steady payouts matter to you.
- Hunt for upside by scanning screener containing 25 high quality undiscovered gems where strong fundamentals have not yet attracted broad attention.
- Prioritise resilience by reviewing 64 resilient stocks with low risk scores that aim to balance return potential with tighter risk controls.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com