A slew of bellwether names like Alphabet (GOOGL), Palantir Technologies (PLTR), Broadcom (AVGO) and GE Aerospace (GE) landed on the latest monthly report on new buys by the best mutual funds. Joining these giants is lesser-known Jabil (JBL).
Jabil is a contract manufacturer involved in industries ranging from defense, data centers. automotive, robotics, space and beyond. As strong demand propels Jabil stock into buy range, the artificial-intelligence-fueled company has also popped onto the Investor’s Business Daily Breakout Stocks Index as it gets ready to report earnings on Thursday.
See Who Joins Jabil On The IBD Breakout Stocks Index
Fellow contract manufacturer TTM Technologies (TTMI), which recently broke out, also made this screen and the latest list of new buys by top funds. Highlighting Wall Street’s interest, the Electronics-Contract Manufacturing group ranks No. 10 out of the 197 industries tracked by Investor’s Business Daily.
Jabil Counts Amazon, Apple, Tesla, GE And More As Partners
Based in St. Petersburg, Fla., Jabil has no shortage of high-profile partners. Its client list includes Magnificent Seven members like Amazon.com (AMZN), Apple (AAPL) and Tesla (TSLA). Aerospace and defense powerhouse GE Aerospace (GE) and AI and semiconductor industry titan Broadcom (AVGO) also work with Jabil.
Jabil’s tentacles reach across 10 business sectors. In addition to those sectors already noted, the company is involved in infrastructure, energy, health care, semiconductor capital equipment, telecommunications and consumer goods.
Showing institutional demand for shares, Jabil has seen three quarters of rising fund ownership. Over that time, the number of funds with a position in the company has spiked to 1,753 from 1,588. In the latest report on new buys by top-rated funds, these investors scooped up more than $208 million worth of the stock.
A key driver of that demand is a rebound in earnings and sales growth, as well as a strong outlook. On June 17, Jabil reported its performance for third-quarter fiscal 2025. While raising its outlook for fiscal 2025, Jabil posted a 16% jump in sales to more than $7.28 billion. Earnings growth accelerated to $2.55 per share, marking a 35% surge.
When Jabil next reports, analysts forecast 9% sales growth to over $7.58 billion. Earnings are expected to climb 27% to $2.92 per share.
AI Stock Jabil Vaults 50% Amid Massive Data Center Infrastructure Build
Jabil Stock Targets Breakout With Earnings Due
With earnings on tap for Thursday, Jabil stock just completed and cleared a cup pattern with a 232.84 buy point.
Showing market leadership, the relative strength line continues to rise toward a 52-week high. The stock also has popped back above its 50-day moving average as it launches a new breakout.
To further show rising technical strength, look for the 21-day exponential moving average to retake the longer-term 50-day line.
As for any company about to report earnings, investors should follow rules for how to buy stocks and when to sell for Jabil stock. These same guidelines f0r risk management apply to stocks like Palantir and Amazon as they take aim at a breakout. Reinforcing that point, shares of Amazon retreated below the 50-day line on Tuesday in heavy trade.
IBD Breakout Opportunities ETF
The IBD Breakout Opportunities ETF (BOUT) from Innovator Capital Management tracks the IBD Breakout Stocks Index. As with other index ETFs, this fund allows you to invest in the entire index in addition to, or rather than, buying individual stocks. Learn more here about the ETF and Innovator.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
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