Public trading strategy
Jabil beats earnings on AI demand but stock dips — buy the dip
Thesis
Jabil's management basically said business is booming because of artificial intelligence hardware. Yet, the stock went down anyway, likely because some traders were taking profits. When a company confirms massive growth but the stock drops anyway, it often creates a great buying opportunity. This trade bets that investors will realize the stock is undervalued and push it back up over the next few weeks.
Strategy approach
Build a dip-buying strategy that enters long on JBL on the 1D timeframe after the stock experiences a 3% drop over 2 days following an earnings release, provided it holds above its 50-day SMA. Exit after 10 days or a 5% gain.
Markets and timeframes
JBL1D