What happened

Shares of Jabil (NYSE:JBL) surged on Thursday, following a robust earnings report early in the morning. The advanced manufacturing services company's stock jumped as much as 10.5% higher in early trading before settling down to a milder 6.5% gain as of 12:20 p.m., EST.

So what

Jabil's net revenue rose 4.4% year over year in the first quarter of fiscal year 2021, landing at $7.8 billion. Adjusted earnings increased by 52% to $1.60 per diluted share. Your average analyst would have settled for earnings of roughly $1.27 per share on top-line sales near $7 billion. Management's earnings guidance for this period pointed to earnings in the neighborhood of $1.25 per share on revenue of roughly $7 billion.

Management also presented guidance for the next quarter and the full fiscal year, well ahead of analyst consensus targets across the board.

Six fiber lasers make their programmed cuts in a sheet of steel.

Image source: Getty Images.

Now what

Jabil saw broad-based growth across all of its core target markets, led by particularly strong orders from the healthcare, automotive, and mobility sectors. Going forward, CFO Mike Dastoor expects sustained growth in these markets as well as rising demand for manufacturing services in additional key markets such as 5G wireless networking.

"The convergence of technology in our daily lives, expedited by 5G and remote work and learn environments continues to drive our mobility and connected devices business," Dastoor said in the earnings call.

Jabil's shares reached a new multi-year high on Thursday morning, reaching all the way back to the spring of 2006. The stock still looks quite affordable as it trades at just 9.4 times forward earnings and 0.2 times trailing sales. This company is poised to benefit from several massive market trends over the next few years. It's not a bad idea to start a modest position in Jabil, even at these surging share prices.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.