Recent Uptick Signals Mild Strength: The stock has experienced a modest price uptick over the last week. Historically, its performance following earnings has shown some sensitivity to the prior week’s movement, making this recent strength a mildly bullish signal.

Short Interest Drops 6%: A more notable factor is the 6% decline in short interest over the last week. Historically, JBL’s post-earnings returns have closely correlated with changes in short interest—short sellers have often been directionally correct. When short positions are reduced ahead of earnings, the stock has typically moved much higher. Blue dots and line on the graph, left side.

Options Market Expects Big Move: JBL has a track record of 6% price swings after earnings releases, but the options market is currently pricing in an 8% move in either direction. Outside of earnings and broader macroeconomic catalysts, the stock generally exhibits low volatility.

All-Time High Share Price: The recent decline in short interest has coincided with the stock’s latest rally. JBL is at an all-time high and is up 7-fold over the past few years.

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