Piotroski’s Best and Worst Large Cap Stocks

By Joel Stonington - 2011-12-06T01:37:02Z

Photograph by Jim Stem/Bloomberg News

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Piotroski's Best: Jabil Circuit

Business: Manufactures electronics for computers and automotive markets

Piotroski Score: 9

Jabil Circuit's (JBL) return on assets has been steadily improving. In 2011, its ROA was 5.68 percent, up from 2.89 in 2010. The company's operating cash flow also rose significantly, coming in at $828 million in 2011, which exceeded net income of $381 million.

Outlook for the Company:

Bull Case: Goldman Sachs notes: "Importantly, we detected a notable change in investor sentiment around Jabil's large customers, a sign that its efforts to diversify the business are paying off."

Bear Case: Goldman Sachs warns that Jabil faces some risks, including the health of its main customers, Research in Motion and Cisco.