Contract electronics manufacturer Jabil (JBL 4.18%) looked like a top stock to buy going into its fiscal 2022 first-quarter results thanks to its attractive valuation and bright prospects. It wasn't surprising to see the company crush recent earnings expectations with a strong set of numbers. Shares of the company, which makes casings for Apple's (AAPL 1.97%) iPhone and iPads, increased 1.7% after its earnings report was released on Dec. 16.

What's more, Jabil raised its expectations for the full year and now anticipates stronger earnings growth in fiscal 2022, while its top line is also on track to exceed consensus estimates. Let's look at Jabil's latest quarterly numbers and check why this tech stock has room to head higher even after jumping 64% so far in 2021.

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Jabil's impressive momentum is here to stay

Jabil's revenue in the first quarter of fiscal 2022 came in at $8.6 billion, up 10% from the prior-year period and ahead of the company's estimate of $8.3 billion. The company's adjusted earnings increased 20% year over year to $1.92 per share. Wall Street was looking for $1.80 per share in earnings from Jabil on revenue of $8.3 billion, but robust demand for the company's offerings across multiple end markets led to a stronger-than-anticipated showing.

The company's guidance indicates that its momentum is here to stay. Jabil expects revenue of $7.4 billion this quarter at the midpoint of its guidance range, along with earnings of $1.45 per share. That revenue forecast is in line with analysts' estimates, while the bottom-line guidance is slightly ahead of the $1.43 Street expectation.

Jabil clocked $1.27 per share in earnings on revenue of $6.8 billion a year ago, which means that its revenue is on track to increase nearly 9% year over year, while earnings could jump 14%. However, don't be surprised to see Jabil crush expectations once again. That's because Jabil has already booked 95% to 98% of its estimated Q2 revenue in just the first 16 days of the quarter, indicating that its actual revenue could exceed the forecast if it keeps getting more orders and manages to fulfill them.

It is also worth noting that Jabil has increased its fiscal 2022 earnings forecast by $0.20 per share to $6.55 per share on revenue of $31.8 billion. Jabil was earlier looking at $31.5 billion in revenue this fiscal year, but its strong Q1 showing and the "broad-based strength in several key end markets" have encouraged it to raise the bar. The new estimates indicate that Jabil is on track to record 8.5% revenue growth and 17% earnings growth in fiscal 2022.

But it won't be surprising to see Jabil boost its guidance as the year progresses. Let's see why that may be the case.

Don't miss these tailwinds

Apple is Jabil's largest customer, accounting for 22% of the company's revenue last fiscal year. This relationship is going to be a key growth driver for Jabil in 2022, as Apple is reportedly looking to expand its iPhone lineup.

Analysts at JPMorgan believe that Apple could launch a 5G-enabled version of its entry-level iPhone SE in 2022. The budget-oriented device is expected to sell 30 million units in 2022, while overall iPhone shipments are expected to increase by 10 million units next year to 250 million. The investment bank adds that a cheaper 5G-enabled iPhone could encourage 300 million existing iPhone users to upgrade, and it may also interest 1.4 billion Android smartphone customers that use low- to mid-end devices.

So Apple could give Jabil's growth a nice shot in the arm next year, though this is not the only major catalyst the company is sitting on. For instance, the auto and transportation business is going to drive the needle in a bigger way for Jabil this year, with the company anticipating this segment's revenue to increase 45% to $3.2 billion. This impressive growth can be attributed to the growing deployment of electronics in vehicles nowadays.

Jabil provides manufacturing services for various automotive electronics functions such as advanced driver-assistance systems (ADAS), connected vehicles, and electric vehicle technology, among others. The use of these technologies is gaining terrific traction in the automotive industry. The ADAS market, for instance, is expected to clock a compound annual growth rate of 17% through 2027 and hit $65 billion in value, according to a third-party estimate.

In all, these end-markets should ensure consistent growth for Jabil in the long run, as they will expand its addressable revenue opportunity. Mordor Intelligence estimates that the global electronics contract assembly market could add over $70 billion in revenue by 2026, which should lead to better times for Jabil and help it clock double-digit annual earnings growth rate as per analysts' expectations.

The valuation makes the stock an enticing bet

Jabil stock trades at just 14 times trailing earnings despite clocking impressive stock market gains in 2021. The forward earnings multiple of 10 further indicates that the stock is a steal right now, especially considering that these multiples are lower than the company's five-year average earnings multiple of 39.

All this makes Jabil an ideal pick for investors looking to buy a growth stock at a reasonable valuation, especially considering that its results could get better as the new year progresses.