Jabil, Inc. JBL recently announced that it has completed the acquisition of Pharmaceutics International, Inc. for an undisclosed amount. Based in Hunt Valley, MD, Pharmaceutics is a prominent contract development and manufacturing organization (CDMO) that offers tailored solutions for each phase of the drug development journey.

Pharma companies encounter several challenges during lengthy and complex processes of drug development, manufacturing and distribution. Enterprises in the CDMO space offer a multitude of services, such as formulation, analytical services in the initial drug development stage, manufacturing of drug substances, packaging and clinical trials that streamline the pharma development journey. The acquisition of Pharmaceutics International marks Jabil’s entry into the CDMO market.

Will JBL Stock Benefit From This Buyout?

Pharmaceutics International boasts leading-edge manufacturing facilities that include the formulation development center, analytical and microbiology laboratories, an aseptic facility for injectables like vials and syringes, dedicated manufacturing suites for oral products, containment suites for handling high-potency compounds and hormones.

Jabil boasts an extensive portfolio of pharmaceutical offerings, which include auto-injectors, cold chain management, dry powder inhalers, insulin pens, metered dose inhalers, needle-free injection systems and more. Integration of Pharmaceutics International’s extensive capabilities will significantly bolster Jabil’s pharmaceutical product offerings and will enable it to develop more advanced solutions for pharma companies. Following the acquisition, Pharmaceutics International will also gain from Jabil’s global reach, cutting edge automation, supply chain efficiency and strong worldwide network, which will enable it to scale up production per the evolving market dynamics.

The CDMO market is expected to grow at a substantial rate in the upcoming years. With the acquisition of Pharmaceutics International, Jabil is well-positioned to capitalize on this emerging market trend.

JBL’s Stock Price Movement

Shares of Jabil have gained 24.7% over the past year compared with the industry’s growth of 65.4%.

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JBL’s Zacks Rank and Key Picks

Jabil currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader industry have been discussed below.

Keysight Technologies, Inc. KEYS has a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the last reported quarter, it delivered an earnings surprise of 5.10%. Keysight is expected to benefit from the growing proliferation of electronic content in vehicles, momentum in space and satellite applications, and rising adoption of driver-assistance systems globally.

InterDigital IDCC carries a Zacks Rank #2 at present. In the last reported quarter, it delivered an earnings surprise of 114.47%.

It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions used in digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.

Zillow Group, Inc. ZG carries a Zacks Rank #2 at present. In the last reported quarter, it delivered an earnings surprise of 9.38%. ZG delivered an earnings surprise of 25.47%, on average, in the trailing four quarters. The company is witnessing solid momentum in rental revenues, driven by growth in multi and single-family listings, which is a positive factor.

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