Jabil Circuit (NYSE: JBL) is a leading electronics manufacturing services firm, providing comprehensive design, manufacturing and product management services to global electronics and technology companies. The firm works for original equipment makers in the automotive, storage, medical, networking, telecommunications, computer and consumer products industries. Top customers include Cisco Systems (NASDAQ: CSCO), Hewlett-Packard (NYSE: HPQ) and Nokia (NYSE: NOK).

The company had good news for investors earlier in the week, when it reported fiscal Q3 EPS of 26 cents and revenues of $3.09 billion. Analysts had been looking for 20 cents and $3.08 billion. Management also guided Q4 EPS to 29-33 cents (29 cent consensus) and Q4 revenues to $3.2-$3.3 billion ($3.19B consensus). Credit Suisse subsequently reiterated its "neutral" rating on the stock, but RBC Capital Markets repeated an "outperform" recommendation and Needham said "buy" again.

Most of us would be thrilled to invest in a stock that doubles our money, but it certainly isn't easy to find these stocks. According to data provider Capital IQ, in the last year only 1.4% of 6,700 stocks trading on the U.S. exchanges were able to double their price.

BusinessWeek started hunting some of these potentially great stocks by asking fund managers to choose those firms expected to provide 100% returns in the next few years. Of course, the resulting list is by no means a sure thing, since major factors such as the ongoing credit crisis and challenging market conditions could affect results in unpredictable ways.

But let's look at some of the strategies used when picking high-potential stocks.

Mary Lisanti, portfolio manager at the Adams Harkness Small Cap Growth Fund, focuses on young companies in the small-cap segment. She points to stocks like Rubicon Technology (NASDAQ: RBCN) and Titan Machinery Inc. (NASDAQ: TITN), saying that investors can have a big advantage when they recognize potential before the market does.

Shares of electronic parts manufacturer Jabil Circuit Inc. (NYSE:JBL) have been plunging this morning, despite the firm posting better-than-expected second quarter earnings per share. Hurting the stock this morning is the company's third-quarter guidance, which came in well below analysts' predictions.

Jabil Circuit reported yesterday evening a second-quarter loss of $24 million or 12 cents per share, hurt by restructuring charges. Excluding costs related to restructuring and impairment, Jabil's earnings number would have come at 20 cents per share. Analysts' forecast (which typically exclude one time items) was for 13 cents per share in the quarter.

The company posted a 4% rise in its second-quarter revenue to $3.1 billion, up from $2.9 billion a year earlier. Analysts, on average, expected Jabil Circuit show revenue of $3.05 billion in the quarter, according to FactSet Research.

Jabil Circuit (NYSE: JBL) is recently trading at $9.90 in pre-open trading, below its close of $11.38.

JBL lowered it fiscal-year guidance and forecast third-year quarter below analyst expectations.

Jefferies says: "The combination of a challenging economy, a slowdown in new program ramps and a reconfiguration of the consumer electronics business continues to keep us cautious on JBL."

JBL overall option implied volatility of 55 is above its 26-week average of 43 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Shares of Jabil Circuit Inc. (NYSE: JBL) have been plunging in today's session after the company issued second-quarter guidance below analysts' expectations last night, despite posting an increase for its first-quarter profit .

The electronics manufacturing service provider reported growth of 50% for its first-quarter profit, which climbed up to $62 million or 30 cents per share. The quarter's results were helped by strong sales in the networking and storage markets.

Excluding special items, the company showed profit in line with the 36 cents analysts had forecast. The company posted a 5% jump in sales during the quarter and reported revenue of $3.37 billion, slightly above analysts' predictions of $3.3 billion.

Entropic Communications (NASDAQ: ENTR), which develops home networking semiconductors, tried to price its IPO at $9 to $11. But investors thought the valuation was too rich. So, the deal came out at $6 per share. In all, the company raised $41.3 million.

No doubt, Entropic is in a hot space -- helping deliver video and music to homes (through cable set-top boxes). According to a study from iSuppli, the global market for home networking silicon is forecast to grow from $1.1 billion in 2007 to $3.1 billion by 2011.

Entropic has 55 customers, which includes biggies like Motorola (NYSE: MOT) and Jabil Circuit. The company also has key strategic investors, such as Cisco (NASDAQ: CSCO).

And, for the first nine months of this year, revenues spiked from $24.9 million to $82.4 million.

The lead underwriters include Credit Suisse (NYSE: CS) and Lehman Brothers (NYSE: LEH). You can find the prospectus at the SEC website. Also, for other recent IPO information, visit DealProfiles.com.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements.

MOST NOTEWORTHY: Labopharm (DDSS), Dell (DELL) and Nasdaq (NDAQ) were today's noteworthy downgrades:

• Labopharm Inc. (NASDAQ: DDSS) was downgraded to Neutral from Buy at Merrill Lynch and to Market Perform from Outperform at Leerink Swann after the 2nd approval letter from the FDA said Tramadol did not show efficacy. CIBC World Markets downgraded shares of Labopharm to Sector Performer from Outperformer and at Canaccord Adams to Sell from Hold.
• Dell Inc. (NASDAQ: DELL) was downgraded to Neutral from Buy at Merrill Lynch, which recommended investors take profits following the strong earnings reports. The firm does not believe the drivers behind the earnings upside are sustainable. Dell was also downgraded at Morgan Stanley, to Equal Weight from Overweight, based on valuation.
• The Nasdaq Stock Market, Inc. (NASDAQ: NDAQ) was downgraded to Equal Weight from Overweight at Lehman, as the firm believes the stock is range-bound for the next several months following the OMX acquisition announcement.

OTHER DOWNGRADES:

• Robert W Baird downgraded shares of DiamondRock Co. (NYSE: DRH) and Chesapeake Utilities Corp. (NYSE: CPK) to Neutral from Outperform on valuation.
• Bear Stearns downgraded shares of Emmis Communications Corp. (NASDAQ: EMMS) to Underperform from Peer Perform, as the firm does not believe the CEO will make another bid to take the company private.
• Matrix USA downgraded shares of Jabil Circuit Inc. (NYSE: JBL) to Hold from Buy.
• Morgan Stanley downgraded shares of Cintas Corp. (NASDAQ: CTAS) Underweight from Equal Weight, citing growth concerns, and downgraded shares of Virgin Media Inc. (NASDAQ: VMED) to Equal Weight from Overweight, citing higher customer churn and weaker pricing power.
• Goldman Sachs downgraded shares of RadioShack Corp. (NYSE: RSH) to Neutral from Buy.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).