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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 year
Neutral
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 years
Positive
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 years
Positive
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

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.