8 Best Electronic Stocks To Buy According to Hedge Funds

2. Jabil Inc. (NYSE:JBL)

Market Cap as of October 22: $14.10 billion

Number of Hedge Fund Holders: 51

Jabil Inc. (NYSE:JBL) is a global manufacturing solutions provider that offers a range of services, including design, engineering, manufacturing, and supply chain management. It serves a diverse customer base across various industries, including healthcare, consumer electronics, automotive, and industrial applications. Its expertise lies in providing end-to-end solutions for complex electronic products, from initial concept development to final assembly and distribution.

It generated a revenue of $6.96 billion in FQ4 2024, which was down 17.66% as compared to the year-ago period. However, this revenue still exceeded expectations by $364 million, driven by stronger performance in connected devices, networking, and storage markets. DMS segment revenue grew 22%, driven by connected devices, but was slightly offset by automotive weakness. EMS segment revenue increased by 13% due to stronger demand in advanced networking markets, despite overall softness in end markets like 5G, renewable energy, and digital print.

It’s expanding its footprint in AI, making it a solid investment. On October 3, Jabil Inc. (NYSE:JBL) announced the acquisition of Mikros Technologies, a manufacturer of liquid cooling solutions in AI data centers. On October 14, the company launched new high-performance AMD and Intel servers functional for AI, FinTech, and Cloud workflows.

Despite a challenging year, the company demonstrated remarkable resilience in 2024. Strong margins, consistent earnings, and robust cash flow were achieved even with reduced revenue. With a strong global network and a clear vision for the future, Jabil Inc. (NYSE:JBL) is well-positioned to capitalize on upcoming opportunities.

Artisan Mid Cap Fund stated the following regarding Jabil Inc. (NYSE:JBL) in its Q3 2024 investor letter:

“We ended our investment campaigns in Edwards Lifesciences, Jabil Inc. (NYSE:JBL) and Trex during the quarter. Jabil provides outsourced manufacturing services to diverse end markets and customers. Our thesis was that the company was moving away from the more cyclical consumer electronics markets toward secular growth areas, such as electric vehicles and medical devices, which would lead to faster growth and higher margins. Unfortunately, while it is a diversified contract manufacturer, several of its meaningful markets have come under pressure this year, including residential solar, semiconductor capital equipment and health care devices. While these headwinds will likely prove temporary, we have also been disappointed by a high level of management turnover in recent quarters. Given these issues, we decided to exit the position in favor of higher conviction investments in technology.”