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J:NYSEJacobs Solutions Inc. Analysis

Data as of 2026-05-26 - not real-time

$114.69

Latest Price

7/10Risk

Risk Level: Medium

Executive Summary

Jacobs Solutions is currently trading below its short‑term and intermediate moving averages, with momentum indicators pointing to a bearish bias. The RSI sits in the lower‑mid range, and the MACD histogram remains negative, suggesting further downside pressure toward the nearest support level. Despite the technical weakness, the company delivered a revenue surge that comfortably beat Wall Street forecasts and posted a non‑GAAP profit per share well above consensus estimates. An insider purchase by the CEO adds a layer of confidence in the near‑term outlook.
Fundamentally, the firm enjoys strong top‑line growth, a forward earnings multiple that is markedly cheaper than its current valuation, and a modest dividend that is well covered by cash flow. The discounted cash‑flow model indicates a substantial upside potential, and analyst consensus remains bullish with a buy recommendation. With a diversified global footprint and a solid order pipeline, the longer‑term narrative remains positive, provided the broader industrial cycle stabilizes.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 6/10

Key Factors

  • Bearish technical positioning near key moving averages
  • Proximity to a defined support level
  • Recent earnings beat providing short‑term cushion

Medium Term

1–3 years
Positive
Model confidence: 8/10

Key Factors

  • Robust revenue growth and improving profitability
  • Significant upside indicated by DCF valuation
  • Insider buying signaling management confidence

Long Term

> 3 years
Positive
Model confidence: 9/10

Key Factors

  • Secular demand for engineering and construction services
  • Sustainable dividend payout supported by cash flow
  • Undervaluation relative to peers and growth trajectory

Key Metrics & Analysis

Financial Health

Revenue Growth27.00%
Profit Margin2.90%
P/E Ratio33.8
ROE9.38%
ROA4.35%
Debt/Equity138.78
P/B Ratio4.1
Op. Cash Flow$572.3M
Free Cash Flow$512.4M
Industry P/E29.7

Technical Analysis

TrendBearish
RSI41.4
Support$105.68
Resistance$137.77
MA 20$120.10
MA 50$124.70
MA 200$139.23
MACDBearish
VolumeStable
Fear & Greed Index91.8

Valuation

Fair Value$127.38
Target Price$158.27
Upside/Downside38.00%
GradeUndervalued
TypeGrowth
Dividend Yield1.26%

Risk Assessment

Beta1.07
Volatility42.50%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskMedium
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.