November 21, 2024
Top 10 Stock Jacobs Engineering Strong Buy Recommendation

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For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).

360° View: Obermatt 360° View Jacobs Engineering Strong Buy

360 METRICS	November 21, 2024
VALUE
VALUE	91
GROWTH
GROWTH	49
SAFETY
SAFETY	67
SENTIMENT
SENTIMENT	65
360° VIEW
360° VIEW	87

ANALYSIS: With an Obermatt 360° View of 87 (better than 87% compared with alternatives) for 2024, overall professional sentiment and financial characteristics for the stock Jacobs Engineering are very positive. The 360° View is based on consolidating four consolidated indicators, with half of the indicators below and half above average for Jacobs Engineering. The consolidated Value Rank has an attractive rank of 91, which means that the share price of Jacobs Engineering is on the lower side compared with typical size in indicators such as revenues, profits, and invested capital. This means the stock price is lower than for 91% of alternative stocks in the same industry. The company is also safely financed with a Safety rank of 67. In addition, professional market sentiment is above average compared with other stock investment alternatives with a Sentiment Rank of 65. But the consolidated Growth Rank has a low rank of 49, which means that the company is below average in terms of growth and momentum when looking at financial metrics such as revenue, profit, and invested capital growth as well as stock returns. 51 of its competitors have better growth. ...read more

RECOMMENDATION: With a consolidated 360° View of 87, Jacobs Engineering is better positioned than 87% of all alternative stock investment opportunities based on the Obermatt Method. Three out of four consolidated Obermatt Ranks show above-average performance. The stock has as good value (Value Rank of 91), secure financing practices (Safety Rank of 67), and positive market sentiment in the professional investor community (Sentiment Rank of 65). It is a solid stock investment where the risk of paying too much for the shares is limited, and disappointments are less likely to occur. The company’s growth expectations are below the industry average (Growth Rank of 49), but that could also be temporary since professional investors remain optimistic despite the low growth numbers. The low price as reflected in the good Value Rank could indicate that the company's future is challenging. The below-par growth performance may be the reason for this. Companies that grow less are typically cheaper than fast-growing competitors. We recommend evaluating whether the future of Jacobs Engineering is as difficult as the stock’s low price suggests, despite the positive professional investor sentiment. Since the professional community is optimistic, you might have less to worry about, and the stock may just go through a more challenging phase now, indicating good timing. ...read more

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Sentiment Strategy: Professional Market Sentiment for Jacobs Engineering positive

SENTIMENT METRICS	November 21, 2024
ANALYST OPINION
ANALYST OPINION	77
OPINIONS CHANGE
OPINIONS CHANGE	40
PRO HOLDINGS
PRO HOLDINGS	83
MARKET PULSE
MARKET PULSE	56
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	65

ANALYSIS: With an Obermatt Sentiment Rank of 65 (better than 65% compared with alternatives), overall professional sentiment and engagement for the stock Jacobs Engineering is above average. The Sentiment Rank is based on consolidating four sentiment indicators where all but one are above average for Jacobs Engineering. Analyst Opinions are at a rank of 77 (better than 77% of alternative investments), which means that currently, stock research analysts tend to recommend a stock investment in the company. The Professional Investors rank is also good at 83, which means that currently, professional investors hold more stock in this company than in 83% of alternative investment opportunities. Pros tend to favor investing in this company. In addition, Market Pulse has a rank of 56 which means that the current professional news and professional social networks are on the positive side when discussing this company (more positive news than for 56% of competitors). But Analyst Opinions Change has a below-average rank of 40, which means that stock research experts are currently changing their opinions for the worse when it comes to recommending this stock. In other words, they are getting more critical of investments in Jacobs Engineering. ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 65 (more positive than 65% compared with investment alternatives), Jacobs Engineering has a reputation among professional investors that is above-average compared with that of its competitors. This is an early sign of caution, even if the stock has significantly appreciated. If analysts change their opinions, the stock may become too expensive. If the price is on the way down, the trend may continue. This may be a stock with a good reputation and history, but it may have reached its breaking point by now. Investors should look at the Value Ranks as well. If they indicate trouble, it might just materialize in the future. ...read more

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Value Strategy: Jacobs Engineering Stock Price Value at the top

VALUE METRICS	November 21, 2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	70
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	60
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	56
DIVIDEND YIELD
DIVIDEND YIELD	89
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	91

ANALYSIS: With an Obermatt Value Rank of 91 (better than 91% compared with alternatives) for 2024, Jacobs Engineering shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Jacobs Engineering. Price-to-Sales is 70 which means that the stock price compared with what market professionals expect for future sales is lower than for 70% of comparable companies, indicating a good value for Jacobs Engineering's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 60% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 56. Compared with other companies in the same industry, dividend yields of Jacobs Engineering are expected to be higher than for 89% of all competitors (a Dividend Yield rank of 89). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 91, is a buy recommendation based on Jacobs Engineering's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Jacobs Engineering based on its detailed value metrics.

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Growth Strategy: Jacobs Engineering Growth Momentum low

GROWTH METRICS	November 21, 2024
REVENUE GROWTH
REVENUE GROWTH	42
PROFIT GROWTH
PROFIT GROWTH	51
CAPITAL GROWTH
CAPITAL GROWTH	37
STOCK RETURNS
STOCK RETURNS	67
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	49

ANALYSIS: With an Obermatt Growth Rank of 49 (better than 49% compared with alternatives), Jacobs Engineering shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Jacobs Engineering. Profit Growth has a rank of 51, which means that currently professionals expect the company to grow its profits more than 51% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 67 (above 67% of alternative investments). But Sales Growth has a below the median rank of 42, which means that, currently, professionals expect the company to grow less than 58% of its competitors, and Capital Growth also has a lower rank of 37. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 49, is a hold recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for Jacobs Engineering. ...read more

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Safety Strategy: Jacobs Engineering Debt Financing Safety above-average

SAFETY METRICS	November 21, 2024
LEVERAGE
LEVERAGE	49
REFINANCING
REFINANCING	45
LIQUIDITY
LIQUIDITY	81
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	67

ANALYSIS: With an Obermatt Safety Rank of 67 (better than 67% compared with alternatives), the company Jacobs Engineering has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Jacobs Engineering is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Jacobs Engineering. Liquidity is at 81, meaning the company generates more profit to service its debt than 81% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 45, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 55% of its competitors. Leverage is also high at a rank of 49, which means that the company has an above-average debt-to-equity ratio. It has more debt than 51% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 67 (better than 67% compared with alternatives), Jacobs Engineering has a financing structure that is safer than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. ...read more

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Combined financial peformance: Jacobs Engineering Top Financial Performance

COMBINED PERFORMANCE	November 21, 2024
VALUE
VALUE	91
GROWTH
GROWTH	49
SAFETY
SAFETY	81
COMBINED
COMBINED	90

ANALYSIS: With an Obermatt Combined Rank of 90 (better than 90% compared with investment alternatives), Jacobs Engineering (Research & Consulting, USA) shares have much better financial characteristics than comparable stocks. Shares of Jacobs Engineering are a good value (attractively priced) with a consolidated Value Rank of 91 (better than 91% of alternatives), are safely financed (Safety Rank of 67, which means low debt burdens), but show below-average growth (Growth Rank of 49). ...read more

RECOMMENDATION: A Combined Rank of 90, is a strong buy recommendation based on Jacobs Engineering's financial characteristics. As the company Jacobs Engineering's key financial metrics exhibit good value (Obermatt Value Rank of 91) but low growth (Obermatt Growth Rank of 49) while being safely financed (Obermatt Safety Rank of 67), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 91% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. ...read more

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