JBL

Adobe Systems (ADBE) came out with quarterly earnings of $6.13 per share, beating the Zacks Consensus Estimate of $6.08 per share. This compares to earnings of $5.31 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +0.82%. A quarter ago, it was expected that this software maker would post earnings of $5.83 per share when it actually produced earnings of $5.96, delivering a surprise of +2.23%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Adobe, which belongs to the Zacks Computer - Software industry, posted revenues of $6.76 billion for the quarter ended August 2026, surpassing the Zacks Consensus Estimate by 1.02%. This compares to year-ago revenues of $5.99 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Adobe shares have lost about 27.2% since the beginning of the year versus the S&P 500's gain of 11.6%. While Adobe has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Adobe was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $6.30 on $6.84 billion in revenues for the coming quarter and $24.39 on $26.56 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computer - Software is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Computer and Technology sector, Jabil (JBL), is yet to report results for the quarter ended August 2026. This electronics manufacturer is expected to post quarterly earnings of $4.05 per share in its upcoming report, which represents a year-over-year change of +23.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Jabil's revenues are expected to be $9.61 billion, up 16.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Adobe Inc. (ADBE) : Free Stock Analysis Report Jabil, Inc. (JBL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Earnings estimates for Celestica Inc. CLS for fiscal 2026 and fiscal 2027 have moved up 11.42% to $11.32 and 30.21% to $19.01, respectively, over the past 60 days. The positive estimate revision depicts bullish sentiments about the stock’s growth potential. Image Source: Zacks Investment Research The proliferation of AI-based applications is expanding demand for Celestica's data communications and information processing infrastructure. In the second quarter of 2026, Enterprise revenues rose 167%, driven by the accelerated ramp of a hyperscaler AI/ML compute program, while 800G switching continued to scale. The company expects mass production of 1.6T programs with two hyperscalers to begin in the third quarter of 2026, with 10 active programs expected to ramp through 2027.The company will manufacture advanced AI racks developed in collaboration with Broadcom to support OpenAI's custom accelerator roadmap. Initial deliveries are expected later in 2026, with mass production scheduled for 2027.AMD is broadening its AI infrastructure offerings with the planned Helios platform. Celestica is playing an important role as a design and manufacturing partner for the platform. Celestica’s comprehensive portfolio spanning communications, cloud, aerospace and defense, industrial and healthcare markets strengthens its business model by making it less vulnerable to downturn in any single market. Its strong focus on product diversification and high-value markets is supported by R&D, engineering and advanced manufacturing capabilities. This allows the company to maintain its competitive edge in a highly competitive electronics manufacturing services industry where it faces competition from major players such as Jabil, Inc. JBL, Sanmina Corporation SANM and Flex. Cash provided by operating activities increased to $410.9 million from $152.4 million in the year-ago quarter, supported by stronger earnings despite higher working capital requirements tied to rapid growth. Free cash flow was $147.1 million, up 22.7% year over year.As of the second quarter of 2026, Celestica’s current ratio stands at 1.23. A current ratio more than 1 implies that the company is well positioned to pay off its short-term debt obligations. Celestica shares have declined 1% in the past year against the Electronics - Manufacturing Services industry’s growth of 20.3%. The stock has underperformed the Zacks Computer & Technology sector and the S&P 500 during the same time frame. Image Source: Zacks Investment Research The company has underperformed its peers like Jabil and Sanmina. Shares of Jabil have jumped 31.2%, and shares of Sanmina have risen 24.9%. From a valuation standpoint, CLS is currently trading at a discount compared to the industry. Going by the price/earnings ratio, the company’s shares currently trade at 17.75 forward 12-month earnings, lower than 18.08 for the industry. Image Source: Zacks Investment Research CLS is witnessing solid momentum across several end markets backed by its robust portfolio. Growing investments in AI infrastructure are driving expansion of Celestica's AI compute business. CLS expects AI-related demand to remain a significant contributor to growth in the coming quarter. The company’s strong liquidity better positions it to navigate economic downturns and capitalize on emerging growth opportunities. Celestica’s expanding client base and growing collaboration with tech giants such as Broadcom, AMD and OpenAI bring a multi-billion-dollar revenue-generating opportunity in the next several years. Hence, with a Zacks Rank #1 (Strong Buy), Celestica appears to be a good investment option at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Celestica, Inc. (CLS) : Free Stock Analysis Report Jabil, Inc. (JBL) : Free Stock Analysis Report Sanmina Corporation (SANM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Earnings estimates for Sanmina Corporation SANM for fiscal 2026 and fiscal 2027 have moved up 5.97% to $11.89 and 7.23% to $13.94, respectively, over the past 60 days. The positive estimate revision depicts bullish sentiments about the stock’s growth potential. Image Source: Zacks Investment Research Sanmina is benefiting from the rapid expansion of its cloud and AI infrastructure business. In the third quarter of fiscal 2026, communications networks and cloud & AI infrastructure generated $2.15 billion of revenues, up 173.2% year over year. The growth is driven by multiple factors. Sanmina has been participating in multiple layers of AI infrastructure such as general-purpose computing, storage, high-performance networking, switching, routing and optical systems. Such broad portfolio offerings give the company greater exposure to opportunities as hyperscalers and other data-center customers expand infrastructure to support surging AI workloads. Sanmina’s broad end-to-end capabilities boost its competitive edge alongside major electronics manufacturing services peers such as Jabil and Flex.The integration of ZT Systems is another major positive driver. Sanmina is combining ZT Systems’ large-scale systems integration capabilities with its own subassembly and manufacturing expertise. This combination allows it to offer customers a broader portfolio, spanning components, subassemblies and ensuring complete system integration. The integration process is going as planned. The company has already secured orders for next-generation compute programs from hyperscale and OEM clients. Rather than restricting its role to contract manufacturing, Sanmina is focusing on participating in the complete product development cycles. Its capability of supporting multiple stages of a complex product allows Sanmina to capture a larger portion of enterprise spending. End to end support from a single vendor also reduces complexity for customers. The vertical integration boosts both revenue and customer stickiness. As Sanmina becomes deeply integrated into enterprises’ supply chain, its growth prospects improve significantly. Sanmina continues to generate healthy operating cash flow while maintaining substantial financial flexibility to support strategic investments. At the end of the third quarter of fiscal 2026, the company held $1.84 billion in cash and cash equivalents and had no borrowings outstanding under its $1.5 billion revolving credit facility, providing total liquidity of approximately $4 billion.As of the third quarter of fiscal 2026, the company’s current ratio stands at 1.78. A current ratio higher than unity implies that Sanmina is well positioned to pay off its short-term debt obligations. Sanmina has gained 68.1% in the past year months compared with the Electronic Manufacturing Services industry’s growth of 54.3%. It has outperformed the Zacks Computer & Technology sector and the S&P 500’s growth during this period. Image Source: Zacks Investment Research Among its competitors, the company has outperformed Jabil, Inc. JBL but underperformed Flex Ltd. FLEX. Jabil has increased 51.1%, while Flex has gained 103.7%. From a valuation standpoint, SANM appears to be relatively cheaper than the industry and lower than its mean. Going by the price/earnings ratio, the company’s shares currently trade at 14.28 forward earnings, lower than 18.08 for the industry and its mean of 18.5. Image Source: Zacks Investment Research AI-driven demand, ZT Systems integration, next-generation accelerated-compute programs are major growth driver for Sanmina. Healthy cash flow growth underscores efficient capital management. Upward estimate revision highlights increasing investors’ confidence in the stock's growth potential. A diverse portfolio and a vertically integrated manufacturing framework are major advantages. Hence, with a Zacks Rank #1 (Strong Buy), Sanmina appears to be a good investment option at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sanmina Corporation (SANM) : Free Stock Analysis Report Jabil, Inc. (JBL) : Free Stock Analysis Report Flex Ltd. (FLEX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Jabil stock has delivered very strong gains over the past five years, yet current checks suggest the market price may still sit below an intrinsic value estimate that points to upside based on discounted future cash flows. The share price has returned 416.6% over five years, which makes the recent valuation signals especially important for anyone considering fresh capital now. The key support for the current valuation is the market's view of Jabil's ability to keep converting its manufacturing services into steady cash flows. A major risk is any pressure on margins that could reduce those cash flows and weaken the investment case. The stock screens as undervalued on both a Discounted Cash Flow (DCF) estimate and on earnings multiples. The broader checks form a mixed picture rather than a clear bargain or clear overvaluation, with the 4.0 value score pointing to 4 of 6 tests suggesting value. The issue now is whether Jabil's current share price already reflects these cash flow expectations or still leaves room compared with the intrinsic value estimate. Compare Jabil's steep five year run with other stocks that still screen as undervalued using the hand picked 51 high quality undervalued stocks list. The Discounted Cash Flow (DCF) model here is a 2 Stage Free Cash Flow to Equity approach built around Jabil's projected cash generation. Jabil has reported latest twelve month free cash flow of about $1.20b, and the model assumes that this cash flow grows from here rather than contracts. Those projections are then discounted back to today using cash flow projections in dollars to arrive at a per share estimate. On this basis, the DCF points to an intrinsic value of about $510 per share. Compared with the current Jabil share price, that implies a 39.0% discount, which means the stock screens as undervalued on this cash flow view. That result relies on free cash flow remaining at least broadly in line with the latest level over time and then increasing from there, rather than slipping back. Overall, the Discounted Cash Flow valuation suggests Jabil stock currently looks undervalued relative to its projected cash flows. Our Discounted Cash Flow (DCF) analysis suggests Jabil is undervalued by 39.0%. Track this in your watchlist or portfolio, or discover 51 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Jabil. The P/E ratio is a useful cross check for Jabil because earnings still sit at the center of how many investors frame value. Jabil trades on a P/E of about 37.8x, which is close to the peer average of 37.4x and above the wider electronic industry average of 30.0x. The model based fair P/E for Jabil is 43.1x, which is higher than the current multiple. That gap indicates the stock trades below the level implied by its earnings profile compared with similar companies that share broadly comparable growth, margins, scale and risk characteristics. In this context, the earnings multiple does not indicate that Jabil is aggressively priced. On this P/E measure, Jabil stock currently appears inexpensive relative to the earnings multiple the model suggests for the business. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Jabil pick up where the valuation work leaves off and focus on the specific future paths that could make the stock worth materially more or less than today's price. They explain the growth, margin and earnings assumptions that sit behind a single ratio or model result so you can see what story that number implies and track over time whether Jabil's actual progress fits it on the Community page. One of the top community narratives on Jabil: 30% undervalued Read one of the top narratives on Jabil Do you think there's more to the story for Jabil? Head over to our Community to see what others are saying! Jabil still screens as undervalued on both the Discounted Cash Flow (DCF) intrinsic value estimate and the earnings multiple checks, which is uncommon after such a strong five year move. The valuation work points to a gap between the current share price and what the cash flow and P/E models imply, rather than to an obviously stretched stock. From here, everything hinges on whether Jabil can sustain cash generation and protect margins enough for that intrinsic value case to hold, or whether the current discount is the market correctly pricing the risk of pressure on profitability. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include JBL. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Jabil trades at $307.75 per share and has stayed right on track with the overall market, gaining 10.9% over the last six months. At the same time, the S&P 500 has returned 10.5%. Is JBL a buy right now? Find out in our full research report, it’s free. With manufacturing facilities spanning the globe from China to Mexico to the United States, Jabil (NYSE:JBL) provides electronics design, manufacturing, and supply chain solutions to companies across various industries, from healthcare to automotive to cloud computing. With $33.59 billion in revenue over the past 12 months, Jabil is a behemoth in the business services sector and benefits from economies of scale, giving it an edge in distribution. This also enables it to gain more leverage on its fixed costs than smaller competitors and the flexibility to offer lower prices. However, its scale is a double-edged sword because it’s challenging to maintain high growth rates when you’ve already captured a large portion of the addressable market. To accelerate sales, Jabil likely needs to optimize its pricing or lean into new offerings and international expansion. Analyzing the long-term change in earnings per share (EPS) shows whether a company’s incremental sales were profitable — for example, revenue could be inflated through excessive spending on advertising and promotions. Jabil’s EPS grew at 18.4% compounded annual growth rate over the last five years, higher than its 2.9% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Unfortunately, Jabil’s 2.9% annualized revenue growth over the last five years was sluggish. This wasn’t a great result, but there are still things to like about Jabil. Jabil’s merits more than compensate for its flaws. At $307.75 per share (or 19.8× forward P/E), is now the right time to buy the stock? See for yourself in our in-depth research report, it’s free. WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. Jabil (JBL) gained 2.12% in the latest trading session, outpacing the S&P 500. Investors are focused on an upcoming earnings report that is expected to show a 23.1% year-over-year EPS increase. See our latest analysis for Jabil. At a share price of $315.05, Jabil has a 1-day share price return of 2.12% and is up 31.06% year to date. Its 1-year total shareholder return of 44.34% and very large 5-year total shareholder return of 436.54% point to strong long term momentum, even after a 30 day share price decline of 16.06%. If you are looking beyond Jabil for other ideas benefiting from similar themes in automation and electronics, it could be a useful time to check out 36 robotics and automation stocks Jabil’s business has scale, growth in revenue and net income, and a long track record in electronics and manufacturing. After such strong multiyear returns and a recent pullback, does the current price still look reasonable? On the most followed narrative, Jabil’s fair value of $441.44 sits well above the latest close at $315.05, which puts the focus on what is driving that gap. Read the complete narrative. Curious what sits behind that AI and free cash flow story for Jabil. The narrative leans on a particular mix of revenue growth, margin uplift, and future earnings power that is not obvious from the headline numbers. Result: Fair Value of $441.44 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, you also need to weigh weaker demand in Connected Living and renewable energy, along with tariff uncertainty, which could pressure Jabil’s revenue and margins. Find out about the key risks to this Jabil narrative. With both risks and rewards in play for Jabil, it makes sense to move quickly, check the details for yourself, and weigh the 4 key rewards and 1 important warning sign If you stop with Jabil, you miss a wider set of opportunities. Use the screeners below to quickly surface stocks that match the kind of portfolio you want. Pinpoint potential mispricings by scanning 55 high quality undervalued stocks that may offer more for each dollar you commit. Strengthen your income stream by reviewing 9 dividend fortresses that could help support regular cash returns. Reduce portfolio stress by focusing on 81 resilient stocks with low risk scores that score well on resilience and financial stability. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include JBL. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Plexus Corp PLXS reported third-quarter fiscal 2026 adjusted earnings per share (EPS) of $2.32 compared with the year-ago quarter’s $1.90. The figure beat the Zacks Consensus Estimate of $2.10 per share. Management expected non-GAAP EPS to be in the band of $2.02-$2.18.Revenues increased 28.1% to $1.305 billion and surpassed the consensus mark of $1.228 billion by 6.3%. Management expected revenues to be between $1.2 billion and $1.25 billion. Broad end-market demand, new program ramps and Industrial strength drove the performance. Plexus Corp. price-consensus-eps-surprise-chart | Plexus Corp. Quote In the fiscal third quarter, Plexus announced 31 manufacturing program wins, which are estimated to contribute $255 million in annualized revenues once fully ramped into production. Shares are up 2.3% in the pre-market trading session today. In the past year, shares have gained 88.6% compared with the Electronics- Manufacturing Services industry’s growth of 49%. Image Source: Zacks Investment Research Aerospace/Defense revenues climbed 27.3% year over year and 10% sequentially to $233 million, accounting for 18% of the total. Broad demand and strong operational execution supported revenue growth. Fiscal 2026 revenues are now projected to grow more than 20%, buoyed by defense demand, while fiscal fourth-quarter revenues are expected to be flat.  Healthcare/Life Sciences revenues increased 15% year over year and 2% sequentially to $483 million, contributing 37% of total revenues. Program ramps remained a growth driver. Fiscal 2026 revenues are projected to be in the high teens, while fiscal fourth-quarter revenues are expected to be flat.  Industrial revenues surged 41.9% year over year and 23% sequentially to $589 million. The sector represented 45% of total revenues, up from 41% in both the prior quarter and the year-ago period. Semiconductor capital equipment and broader industrial demand and program ramps supported the growth. Management expects Industrial revenues to rise in the high-single to low-double digits sequentially in the fiscal fourth quarter while overall fiscal 2026 revenues are projected to grow more than 20%.  Our estimates for revenues from the Industrial, Healthcare/Life Sciences and Aerospace/Defense were $533.1 million, $473 million and $222 million, respectively. Revenues from the Americas increased 37.2% year over year to $428 million. Asia-Pacific revenues increased 30.3% while EMEA revenues declined 6.8%. The company’s top 10 customers accounted for 55% of net revenues in the fiscal third quarter. Gross profit on a GAAP basis was up 27.2% year over year to $131.4 million. Gross margin was 10.1%, unchanged from the year-ago quarter. Selling and administrative expenses increased 41.1% from the year-ago quarter’s actuals to $70.1 million.Adjusted operating margin expanded 30 basis points to 6.3%. As of July 4, 2026, Plexus had cash & cash equivalents worth $314.1 million compared with $303.1 million as of April 4. PLXS had long-term debt and finance lease obligations, net of the current portion of $91.6 million as of July 4, 2026, compared with $91 million as of April 4. For the quarter under review, cash flows generated from operations were $25.9 million. Plexus reported a free cash outflow of $0.7 million after incurring capital expenditures of $26.6 million. The company repurchased $20.6 million worth of shares at an average price of $258.75 per share under its repurchase program in the fiscal third quarter. Out of the $100 million authorization, $21.4 million remains available. For the fiscal fourth quarter, revenues are projected between $1.33 billion and $1.38 billion. At the midpoint, the revenue outlook implies a 4% sequential rise and 28% year-over-year growth. Non-GAAP EPS is expected to be in the band of $2.47-$2.63, while adjusted operating margin is forecasted in the 6.1-6.5% range.Management now expects fiscal 2026 revenue growth above 20% and adjusted operating margin  greater than 6%. Fiscal 2027 revenue growth is expected to exceed the 9-12% goal, alongside further margin expansion.The stronger outlook also requires more working capital investments. Management now anticipates fiscal 2026 free cash flow usage.  Earlier, Plexus projected free cash flow to be $50-$75 million for fiscal 2026. The company expects to return to meaningful free cash flow generation early in fiscal 2027. Plexus currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Jabil Inc JBL reported third-quarter fiscal 2026 results wherein core earnings of $3.16 per share increased 23.9% year over year and topped the Zacks Consensus Estimate of $3.12 by 1.28%. Net revenues rose 11.8% to $8.75 billion and exceeded the consensus mark of $8.63 billion by 1.39%. Jabil’s Intelligent Infrastructure remained the key growth engine, with segment revenues climbing 21% year over year. Over the past year, shares of JBL have gained 26.8%.Sanmina Corporation SANM reported third-quarter fiscal 2026 earnings, wherein non-GAAP EPS stood at $3.31, beating the Zacks Consensus Estimate of $2.78. Revenues of $3.46 billion exceeded the Zacks Consensus Estimate of $3.43 billion. Management added that strong execution across both core Sanmina operations and the ZT Systems business supported expansion. Over the past year, shares of SANM have gained 41.4%.Celestica’s CLS second-quarter 2026 adjusted earnings were $2.54 per share, which surged 82.7% year over year, and topped the Zacks Consensus Estimate by 10.9%. Revenues increased 62.4% to $4.7 billion and topped the consensus mark by 8.1%. Momentum in Connectivity & Cloud Solutions remained the key catalyst for Celestica. Over the past year, shares of CLS have gained 61.6%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Plexus Corp. (PLXS) : Free Stock Analysis Report Jabil, Inc. (JBL) : Free Stock Analysis Report Celestica, Inc. (CLS) : Free Stock Analysis Report Sanmina Corporation (SANM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Sanmina Corporation SANM has delivered stronger-than-expected quarterly results while raising its fiscal outlook amid rising demand for artificial intelligence infrastructure. That has renewed investor interest in whether the stock still offers an attractive opportunity.The answer depends on whether the company's earnings momentum, valuation and expanding AI manufacturing footprint can outweigh execution and competitive risks. Sanmina reported quarterly adjusted earnings and revenues above expectations, supported by broad-based demand across its core operations and the contribution from the ZT Systems acquisition. Revenue growth, operating margin expansion and improved operating leverage reflected favorable product mix, disciplined cost management and higher engineering services activity.The core business continued benefiting from cloud and AI infrastructure demand, while ZT Systems expanded Sanmina's presence in accelerated compute platforms and strengthened its integrated manufacturing capabilities. The shares trade at a forward earnings multiple that remains modest relative to projected earnings growth. The current valuation suggests investors are not paying an excessive premium for expected growth.Even so, valuation should be viewed alongside execution. Sustaining earnings growth will require the company to successfully ramp new AI programs and deliver on its manufacturing investments. Image Source: Zacks Investment Research Management raised its fiscal 2026 revenue, operating margin and earnings outlook following the latest quarter. It also continues to expand production capacity, automation, liquid cooling and power infrastructure.Additional hyperscale and original equipment manufacturer program wins, together with demand visibility extending into future fiscal periods, remain important. Industry peers Jabil Inc. JBL and Flex Ltd. FLEX are also benefiting from AI infrastructure manufacturing demand. Customer concentration, elevated inventory levels, ongoing capital spending requirements, competitive pressures, geopolitical uncertainty and supply chain complexity remain key risks. Continued investment could also create periodic margin variability as new programs ramp. The bottom line is that Sanmina continues to benefit from favorable AI infrastructure trends and improving financial performance, although execution remains important.The stock carries a Zacks Rank #3 (Hold), along with a Value Score of A, Growth Score of A, Momentum Score of B and VGM Score of A. These Style Scores highlight attractive value and growth characteristics, while the Hold rank supports a balanced near-term view. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sanmina Corporation (SANM) : Free Stock Analysis Report Jabil, Inc. (JBL) : Free Stock Analysis Report Flex Ltd. (FLEX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Celestica Inc. CLS has rallied sharply as investors reward its accelerating exposure to artificial intelligence infrastructure. That raises a natural question of whether the stock still offers attractive upside after another quarter of better-than-expected results.Answering that question requires balancing the company's operational momentum against its richer valuation, long-term growth prospects and the risks that accompany a rapidly expanding business. Celestica again exceeded expectations in the second quarter of 2026. Adjusted earnings of $2.54 per share beat the consensus mark by 10.9% while revenues climbed 62.4% year over year to $4.70 billion, topping estimates by 8.1%. Record adjusted operating margin of 8.2% reflected stronger operating leverage and favorable business mix.Management also raised full-year guidance. It now expects 2026 revenues of $20.5 billion, adjusted earnings of $11.30 per share, adjusted operating margin of 8.4% and free cash flow of $600 million, reinforcing confidence in continued execution. Celestica's strong share-price performance has pushed its valuation above its historical norms and ahead of many industry and broader market benchmarks. Investors are now paying a premium for the company's AI-driven growth prospects and improving earnings profile.Even so, the higher valuation may be justified if the company continues delivering rapid earnings growth, expanding margins and executing on its AI infrastructure opportunities. Future upside will likely depend more on sustained earnings growth than on additional multiple expansion. Image Source: Zacks Investment Research AI infrastructure investment continues to underpin demand for enterprise networking, cloud infrastructure, storage systems and high-bandwidth switching products. Expansion of 400G, 800G and emerging 1.6T networking platforms should support future growth.Celestica is also broadening its technology portfolio through product innovation, manufacturing investments and engineering capabilities. The rapidly growing Connectivity & Cloud Solutions business remains the primary earnings engine as hyperscale customers continue expanding AI infrastructure. Competition remains intense across the electronics manufacturing services industry. Celestica competes with large global players, including Jabil JBL, Flex FLEX and Sanmina SANM, making continued investment in technology, manufacturing capabilities and customer relationships essential to maintaining market share.International operations also expose the company to foreign exchange movements, geopolitical uncertainty and supply-chain disruptions. Macroeconomic weakness could weigh on portions of the Advanced Technology Solutions business despite stronger AI-related demand. The investment case continues to benefit from favorable earnings estimate revisions alongside healthy operating momentum. Even after the stock's appreciation, the company appears positioned to participate in long-term AI infrastructure spending.Celestica currently sports a Zacks Rank #1 (Strong Buy), a Growth Score of B and a VGM Score of B. Those indicators point to favorable growth characteristics and supportive estimate revisions. Its Value Score of D suggests much of the recent operational strength is already reflected in the share price, making continued execution important for sustaining investor enthusiasm. You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Celestica, Inc. (CLS) : Free Stock Analysis Report Jabil, Inc. (JBL) : Free Stock Analysis Report Flex Ltd. (FLEX) : Free Stock Analysis Report Sanmina Corporation (SANM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Saint Petersburg, Florida-based Jabil Inc. (JBL) provides engineering, manufacturing, and supply chain solutions worldwide. The company has a market capitalization of $32.8 billion and operates through the Regulated Industries, Intelligent Infrastructure, Connected Living, and Digital Commerce segments, and offers electronic hardware, embedded software design services, and the design of plastic and metal components, enclosures, sub-assemblies, and systems, among others. JBL is expected to release its Q4 2026 earnings soon. Ahead of the event, analysts expect the company’s EPS to be $3.86 on a diluted basis, up 23.7% from $3.12 in the year-ago quarter. The company has exceeded Wall Street’s EPS estimates in three of its last four quarters, while missing on one occasion. Dear SpaceX Stock Fans, Mark Your Calendars for August 6 Amazon Stock Just Hit a Major Hurdle Ahead of Earnings Elon Musk Just Revealed a Quiet Win for Tesla’s AI Ambitions Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! For fiscal 2026, analysts project the company’s EPS to be $11.71, up 31.7% from $8.89 in fiscal 2025. Moreover, its EPS is expected to grow by roughly 33.1% year over year (YoY) to $15.58 in fiscal 2027. JBL has surged 40.3% over the past 52 weeks, rallying the S&P 500 Index’s ($SPX) 16.8% rise and the State Street Technology Select Sector SPDR ETF’s (XLK) 34.6% rise during the same time frame. On June 18. JBL stock declined marginally following the release of its better-than-expected Q3 2026 earnings. The company’s revenue for the quarter amounted to $8.8 billion, surpassing the Street’s estimates. Moreover, its adjusted EPS came in at $3.16, beating Wall Street’s forecasts. Jabil expects full-year earnings to be $12.70 per share, with revenue expected to be $35 billion. Despite falling back intraday, JBL’s stock bounced back and rose 1.4% in the following trading session. Analysts are highly optimistic on JBL, with the stock currently rated “Strong Buy” overall. Among the 11 analysts covering the stock, 10 recommend a “Strong Buy,” and one recommends a “Hold.” JBL’s average analyst price target is $447.73, indicating a 45% upside from the current levels. On the date of publication, Aritra Gangopadhyay did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

Flex Ltd. FLEX is slated to report first-quarter fiscal 2027 results on Wednesday, before market open. The Zacks Consensus Estimate for fiscal first-quarter revenues is $7.58 billion, which indicates an increase of 15.3% from the year-ago quarter’s reported figure. The consensus mark for earnings is pegged at 93 cents per share, up 29.2% year over year. For the quarter, the company expects net revenues to be between $1.750 billion and $1.900 billion. Management expects adjusted earnings of $2.05 to $2.15 per share. The company’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 9.47%, on average. In the past year, the stock has surged 134.7% compared with the Zacks Electronics - Miscellaneous Products industry’s growth of 68.4%. Image Source: Zacks Investment Research FLEX has also outperformed its peers, Cisco Systems, Inc. CSCO, Jabil Inc. JBL and Sanmina Corporation SANM. CSCO, JBL and SANM have climbed 71.6%, 39.2% and 111.9%, respectively, in the same time frame. Our proven model does not predict an earnings beat for FLEX this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here. FLEX has an Earnings ESP of -1.29% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here. Flex continues to benefit from robust demand for AI infrastructure, with its Cloud and Power Infrastructure (CPI) business emerging as the primary growth driver. On the last earnings call, management highlighted that the company recently secured substantial incremental business from several hyperscaler and data center customers, including Google. These engagements span power infrastructure, thermal systems and complex hardware manufacturing deployed across Flex's global footprint. To strengthen its capabilities, the company completed the acquisition of Electrical Power Products (EP²), expanding its power portfolio with utility-grade solutions that enhance its ability to deliver end-to-end offerings for grid modernization, electrification and AI-driven data center infrastructure. Management also announced plans to spin off the CPI business into a standalone public company in the first quarter of calendar 2027, reflecting confidence in the business' scale, growth profile and strategic importance. Flex expects this momentum to continue in fiscal 2027, targeting 65-75% revenue growth for the CPI segment, followed by more than 80% growth in fiscal 2028. Image Source: Zacks Investment Research On the last earnings call, the company stated that AI-driven compute density is increasing demand for integrated power and thermal solutions, while recent multiyear program wins across hyperscalers, colocation providers, neoclouds and utility customers support its long-term outlook. Management expects the power business to continue outpacing cloud growth, with investments made in fiscal 2026 enabling stronger growth in the second half of fiscal 2027 and supporting capacity requirements through fiscal 2029. Expanding its AI infrastructure solutions, Flex, through its advanced cooling subsidiary JetCool, introduced a turnkey liquid-cooled version of the Dell PowerEdge XE7745 server on June 25, 2026, to support faster enterprise AI deployments. The integrated solution combines direct-to-chip liquid cooling, rack-level infrastructure, deployment and maintenance services, and unified warranty coverage, enabling higher compute density, improved thermal performance, lower power consumption and simplified deployment through a single end-to-end offering. Flex is also strengthening its position in the market by expanding its manufacturing partnership with Cerebras Systems. Announced on July 9, 2026, the collaboration aims to increase production of the Cerebras CS-3 AI accelerator systems nearly sevenfold by 2026, positioning Flex to capitalize on rising demand for advanced AI computing infrastructure. To support this expansion, the company is investing in new production lines, automated testing and validation facilities, as well as enhanced logistics capacity at its Milpitas, CA, facility. Flex Ltd. price-consensus-chart | Flex Ltd. Quote The company expects its Regulated Manufacturing Solutions (RMS) business to deliver high single-digit to low double-digit revenue growth in the first quarter of fiscal 2027, driven by industrial and healthcare demand. Integrated Technology Solutions (ITS) revenue is also projected to increase in the high single-digit to low double-digit range, supported by strength in communications despite continued weakness in lifestyle. However, the company is grappling with continued weakness in its lifestyle business, which is expected to partially offset strength in communications within the ITS segment. High debt and stiff competition remain additional concerns. Flex has a Value Style Score of A. In terms of Price/Book, FLEX shares are trading at 8.44X, lower than the Electronics - Miscellaneous Products industry’s 26.35X. Image Source: Zacks Investment Research CSCO, JBL and SANM shares are trading at multiples of 9.21X, 24.68X and 4.28X, respectively. Flex remains well-positioned ahead of its first-quarter fiscal 2027 earnings, supported by strong AI infrastructure demand, hyperscaler wins, the EP² acquisition and expanding liquid-cooling and AI manufacturing capabilities. While weakness in the lifestyle business, high debt and competition remain risks, the company's robust CPI growth outlook and reasonable valuation continue to support its long-term outlook. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report Jabil, Inc. (JBL) : Free Stock Analysis Report Flex Ltd. (FLEX) : Free Stock Analysis Report Sanmina Corporation (SANM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research