J:NYSEJacobs Solutions Inc. Analysis
Data as of 2026-04-11 - not real-time
$122.87
Latest Price
6/10Risk
Risk Level: Medium
Executive Summary
Jacobs Solutions (J) is trading at $122.87, well below its 20‑day SMA of 127.99 and its 50‑day SMA of 133.93, indicating a short‑term bearish price bias. The RSI of 36.9 suggests the stock is approaching oversold conditions, while the MACD histogram turned positive (+0.059) and the signal line is bullish, hinting at a potential technical reversal toward the identified support at $122.35. On the fundamentals side, revenue is growing at 12.3% YoY, forward EPS of 8.03 dwarfs trailing EPS of 3.78, and the DCF‑derived fair value of $197.59 implies roughly 28% upside versus the current price. The forward P/E of 15.3 is well below the current trailing P/E of 32.5 and the industry average of 30.9, reflecting strong earnings momentum. Dividend yield sits at a modest 1.17% with a payout ratio of 33.8%, supported by healthy free cash flow of $1.09 B. Recent news highlights a new Data Center Digital Twin built on NVIDIA Omniverse, underscoring J’s push into high‑growth digital services, and Jim Cramer’s “Mad Money” mention of resilient consumer spending adds a layer of positive sentiment. Despite a 3.6% share‑price decline since the last earnings release and decreasing volume, the combination of technical support, earnings acceleration, and strategic initiatives positions the stock for a potential rebound.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 6/10
Key Factors
- Price below short‑term SMAs indicating downside pressure
- RSI near oversold and bullish MACD signal suggesting a possible bounce
- Support level at $122.35 providing a floor
Medium Term
1–3 yearsPositive
Model confidence: 8/10
Key Factors
- Strong revenue growth (12.3%) and accelerating EPS
- Forward P/E of 15.3 versus trailing P/E of 32.5
- Strategic digital‑twin launch expanding high‑margin services
Long Term
> 3 yearsPositive
Model confidence: 9/10
Key Factors
- DCF fair value indicating ~28% upside
- Sustainable dividend with low payout ratio
- Diversified global footprint reducing concentration risk
Key Metrics & Analysis
Financial Health
Revenue Growth12.30%
Profit Margin3.50%
P/E Ratio32.5
ROE9.73%
ROA5.68%
Debt/Equity65.17
P/B Ratio4.2
Op. Cash Flow$960.0M
Free Cash Flow$1.1B
Industry P/E30.9
Technical Analysis
TrendBearish
RSI36.9
Support$122.35
Resistance$132.24
MA 20$127.99
MA 50$133.93
MA 200$141.44
MACDBullish
VolumeDecreasing
Fear & Greed Index87.09
Valuation
Fair Value$197.59
Target Price$157.53
Upside/Downside28.21%
GradeUndervalued
TypeGrowth
Dividend Yield1.17%
Risk Assessment
Beta1.13
Volatility24.19%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskLow
Liquidity RiskMedium
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.