Jabil Circuit, Inc. (JBL) is a provider of worldwide electronic manufacturing services and solutions. Jabil provides electronics design, production and product management services to companies in the aerospace, automotive, computing, consumer, defense, industrial, instrumentation, medical, networking, peripherals, solar, storage and telecommunications industries. JBL is currently trading around $20.78 in a 52-week range of $15.30 – 24.13. The company’s stock has been outperforming the market this year with shares increasing 19.14% year to date.
The electronics manufacturer is scheduled to announce earnings today after the bell. In July, Jabil Circuit announced its Board of Directors had authorized the repurchase of up to $100 million worth of shares of the company’s common stock. CFO Alexander Forbes was quoted during the last conference call saying, “Our third fiscal quarter performed largely as planned and is highlighted by a strong balance sheet performance, driven by significant cash flow from operations and a total cash position of $1.3 billion. We believe the strength of our balance sheet positions us well as we consider strategic investments in key growth areas in fiscal 2015.” While the expectations of management might be positive, the historical data tells a slightly different story.
Historical data shows that for the past 8 earnings reports, JBL has moved an average of 7.4%, with 5 out of 8 last reports moving the stock to the downside. The near-term at-the-money straddle is implying a 8.3% move in the stock. By comparing historical data to current implied data, we can infer that implied volatility is 1% higher than the historical mean, suggesting more tension and increased interest in JBL options. Accounting for historical vs. implied data, we are neutral-to-bearish on this name. Browse our , with a variety of options to suit every taste and budget, available to buy online.
DISCLAIMER:
| “KeeneontheMarket.com” (“KOTM”) is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of KOTM are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory. IMPORTANT NOTICE! No representation is being made that the use of this strategy or any system or trading methodology will generate profits. Past performance is not necessarily indicative of future results. There is substantial risk of loss associated with trading securities and options on equities. Only risk capital should be used to trade. Trading securities is not suitable for everyone. Disclaimer: Futures, Options, and Currency trading all have large potential rewards, but they also have large potential risk. You must be aware of the risks and be willing to accept them in order to invest in these markets. Don’t trade with money you can’t afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures, options, or currencies. No representation is being made that any individual, group, or entity will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. |