Jabil Inc

Jabil Services (JBL) reported a strong beat-and-raise quarter, contributing positively to our portfolio. The company is benefiting from the ongoing infrastructure build-out to support AI, which is a key theme driving growth in the sector. The outlook for Jabil remains promising as expectations continue to rise, indicating a solid investment opportunity in the current market environment.

We trimmed our position in Jabil, also in the Information Technology sector. Jabil has done well in recent years as the company has capitalized on the rapid growth of AI. While we continue to hold the stock, the ranking has deteriorated as earnings and cash flow have not kept up with the price increases. However, it remains in our hold range even though valuation scores have deteriorated. The strong momentum scores and the company’s aggressive stock repurchases are both positives in our model. Given the run-up in the stock, we trimmed our position in the first quarter.

We added new positions in contract manufacturers Jabil and Fabrinet, as both companies continue to see outsized demand due to datacenter construction and other areas of AI infrastructure. Given the tech sector’s price movement throughout the quarter, we decided to slightly increase our positions in Jabil, Descartes Systems Group, and Service Titan.

Jabil Inc. was a significant contributor to the Fund's performance, with a return of 60.36% during the quarter. The company handily beat analysts’ estimates for revenue, earnings, and operating income, showcasing its strong operational performance. This positive momentum reflects the company's robust position in the market, particularly as it benefits from rising demand in the technology sector. The Fund's decision to add to its position in Jabil indicates confidence in its continued growth and value potential.