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Jacobs Engineering Group Inc. (NYSE:J): A Fundamentally Weighted Stock for Long-Term Investors

Jacobs Engineering Group Inc. (NYSE:J) has a beta of 0.89, a 12-month trailing P/E ratio of 33.35, and a growth ratio of 2.57. The stock’s Relative Strength Index (RSI) is 60.06, with weekly volatility at 1.45% and ATR at 2.71. The J stock’s 52-week price range has touched low of $77.51 and a $145.97 high. Its shares traded higher over the last trading session, gaining 0.05% on 05/27/21. The shares fell to a low of $139.78 before closing at $140.56. Intraday shares traded counted 0.69 million, which was -10.69% lower than its 30-day average trading volume of 626.54K. J’s previous close was $140.49 while the outstanding shares total 130.26M.

Investors have identified the Engineering & Construction company Jacobs Engineering Group Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $18.05 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Jacobs Engineering Group Inc. (J) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For J, the company has in raw cash 893.28 million on their books with 53.81 million currently as liabilities. How the trend is over time is what investors should be concerned about. In terms of their assets, the company currently has 5.08 billion total, with 3.4 billion as their total liabilities.

J were able to record 305.18 million as free cash flow during the 08/09/2021 quarter of the year, this saw their quarterly net cash flow reduce by 304.43 million. In cash movements, the company had a total of 350.23 million as operating cash flow.

Potential earnings growth for Jacobs Engineering Group Inc. (J)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/09/2021 quarter of the year, Jacobs Engineering Group Inc. recorded a total of 3.55 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 3.4% coming in sequential stages and their sales for the 08/09/2021 quarter increasing by 4.68%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 2.78 billion trying to sell their products during the last quarter, with the result yielding a gross income of 767.01 million. This allows shareholders to hold on to 130.26M with the recently reported earning now reading 0.08 cents per share. This is a figure that compared to analyst’s prediction for their 08/09/2021 (1.66 cents a share).

Having a look at the company’s valuation, the company is expected to record 7.07 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on J sounds very interesting.

Is the stock of J attractive?

In related news, President & COO, PRAGADA ROBERT V sold 21,387 shares of the company’s stock in a transaction that recorded on Apr 12. The sale was performed at an average price of 135.24, for a total value of 2,892,346. As the sale deal closes, the SVP & GENERAL COUNSEL, Tyler Michael R now sold 4,125 shares of the company’s stock, valued at 503,704. Also, Director, DAVIDSON ROBERT C JR sold 3,500 shares of the company’s stock in a deal that was recorded on Feb 12. The shares were price at an average price of 114.71 per share, with a total market value of 401,490. Following this completion of acquisition, the Executive Vice President, HICKTON DAWNE S now holds 2,347 shares of the company’s stock, valued at 255,823. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.90%.

14 out of 17 analysts covering the stock have rated it a Buy, while 2 have maintained a Hold recommendation on Jacobs Engineering Group Inc.. 0 analysts has assigned a Sell rating on the J stock. The 12-month mean consensus price target for the company’s shares has been set at $156.79.

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