This Magnificently Cheap Tech Stock Has Nearly Doubled in 2023, and It Could Soar Another 92%
Shares of electronics manufacturer Jabil (NYSE: JBL) have almost doubled so far this year, rising more than 96% as of this writing. The reason why the company has been able to deliver such a terrific upside is because of its consistently solid results, which have been exceeding Wall Street's expectations.
For example, Jabil stock shot up almost 20% on Sept. 28 after the company released fiscal 2023 fourth-quarter results (for the three months ended Aug. 31), reporting stronger-than-expected earnings and issuing solid guidance. Let's take a closer look at Jabil's business and check what has caused this tech stock to surge so much this year.
Jabil reported fiscal 2023 revenue of $34.7 billion, up just 3.6% from the prior year. The slow rate of revenue growth can be attributed to the challenges Jabil faced in the connected devices business, where its revenue fell 15% year over year to $4 billion. Jabil blamed soft demand on account of weak consumer goods spending for the weakness in this segment, and it also pointed out that it expects "another year of market contraction for the coming year."
Source Fool.com
