Jim Cramer on Jabil: "You're Practically Getting This Quarter for Free"

Jabil Inc. (NYSE:JBL) is one of the one of the stocks Jim Cramer was bullish on due to share buyback activity. Cramer highlighted the company’s transformation, as he remarked:

“Seventh, one that just reported, Jabil, the contract manufacturer formerly known as Jabil Circuit, which has shrunk its share count by 43.6% since the end of 2015. Jabil’s transformed itself from an outsourced kind of low-multiple manufacturer into a company that helps its clients actually design their products and figure out where to make them, very important now that there are tariffs all over the place. Jabil just reported a fantastic set of numbers this morning. But while the stock initially jumped nearly 10% in response, it eventually gave up most of those gains, but that’s because of a full-blown sector sell-off. Holy cow. They were shooting everything today. Now, you’re practically getting this quarter for free. I think some investors wanted just to ring the register, given that the stock is up 50%.”

Jabil Inc. (NYSE:JBL) provides manufacturing, design, and product management services, including electronics design, prototyping, and system assembly. It is worth noting that 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.”

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