Jim Cramer Suggests "I Think You Need to Listen to Jabil Very Closely"

Jabil Inc. (NYSE:JBL) is one of the stocks on Jim Cramer’s game plan this week. Cramer called the company’s upcoming report “really important,” as he said:

“Then on Wednesday morning, we hear from Jabil. Okay, now, this is really important. This manufactures a lot of the infrastructure and hardware of inside data centers. I expect this could be the data center turning point, if we’re going to get one. I think you need to listen to Jabil very closely because it can undo the negativity that was unleashed by the Oracle story. This could be a huge reversal as short sellers will be running rampant in the AI stocks on Monday and Tuesday, sensing they finally have a chance to bring them down.”

Jabil Inc. (NYSE:JBL) provides manufacturing, design, and product management services, including electronics design, prototyping, and system assembly. During the October 1 episode, Cramer called the company stock one of his favorites, as he stated:

“Right now, we’ve got a quiet bull market in what’s called contract manufacturers, although they do far more than that, the companies that provide outsourced manufacturing for all sorts of industries. Take Jabil, one of my favorites, which does manufacturing for everything from healthcare to autos to electronics and equipment that goes into the data center. This company’s been putting up excellent numbers, including last Thursday when Jabil reported a blowout quarter with better-than-expected guidance for the current quarter.

Bizarrely, the stock actually sold off in response. This has been happening quite a few times lately, losing almost 7% of its value in a single session, although since then, it’s recouped about a third of those losses. Now, some of that might be because Jabil’s revenue guidance seemed a little conservative. I think a lot of it’s just profit taking in a traditionally quiet company that’s seen its shares explode higher deservedly over the past year.”

While we acknowledge the potential of JBL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.