Stock Analysis | Jacobs Solutions Outlook - Weak Technicals and Mixed Fundamentals

Market Snapshot

Takeaway: Jacobs Solutions (J) is showing a weak technical outlook and a modestly positive fundamental score, but the price is currently down by 0.38%. Analysts are optimistic, but market trends and technical signals suggest caution.

News Highlights

Recent Events:

• On May 30, Berger Montague filed an antitrust class action against the UFC on behalf of non-UFC professional MMA fighters. While unrelated to J, legal actions can often impact broader market sentiment.
• Also on May 30, Med-X, Inc. announced a Regulation A+ public offering to fund eco-friendly pest control and pain management solutions. The move reflects growing interest in green technology, a sector that could indirectly affect J’s business lines.
• DexCom Inc. received FDA approval for its G4 Platinum Professional Continuous Glucose Monitoring system on May 28, indicating a favorable regulatory climate for medical devices. This may be relevant to J if it has exposure to the health tech sector.

Analyst Views & Fundamentals

Analyst Sentiment:

• Average (Simple Mean) Rating: 4.67 (out of 5)
• Weighted Rating (Performance-Weighted): 5.68 (out of 5)
• Rating Consistency: Analysts are somewhat aligned, with 2 “Strong Buy” ratings and 1 “Buy” rating issued recently. However, the current price decline suggests a mismatch with the optimistic expectations.

Fundamental Factors:

• Price to Cash Flow (PCF): -164.01 — this large negative value indicates poor financial efficiency. Internal diagnostic score: 1.00
• Price to Sales (PS): 5.43 — above average, suggesting a potentially overvalued stock. Internal diagnostic score: 1.00
• Operating Revenue Growth (YoY): 3.29% — modest growth. Internal diagnostic score: 1.00
• Basic EPS Growth (YoY): -101.88% — a significant decline. Internal diagnostic score: 1.00
• Current Assets Turnover Ratio: 125.13% — efficient short-term asset usage. Internal diagnostic score: 2.00
• Cash-to-Market Value (Cash-MV): 5.40% — a low ratio suggests undervaluation. Internal diagnostic score: 4.00

Money-Flow Trends

Jacobs Solutions is currently experiencing a negative overall trend in fund flows, with large and extra-large investors showing outflows. However, retail investors are showing a positive trend with a small inflow ratio of 50.43%.

• Small inflow ratio: 50.43%
• Medium inflow ratio: 48.22%
• Large inflow ratio: 49.11%
• Extra-large inflow ratio: 45.85%
• Overall inflow ratio: 47.02% — a modest positive signal from retail and mid-sized investors.
• Fund flow score: 7.52 (internal diagnostic score — indicating a “good” flow pattern)

Key Technical Signals

Jacobs Solutions has 1 bullish and 4 bearish indicators over the last five days, indicating a weak technical setup. The technical score is 2.88, which is low and aligns with the advice to avoid the stock for now.

• Marubozu White: A bullish candlestick pattern. Internal diagnostic score: 7.52
• Bearish Engulfing: A bearish reversal pattern. Internal diagnostic score: 1.00
• Ex-Dividend Date: Often associated with price drops. Internal diagnostic score: 1.46
• Dividend Record Date: May cause temporary bearish pressure. Internal diagnostic score: 1.22
• WR Oversold: Neutral but may signal a rebound. Internal diagnostic score: 3.20

Recent Technical Signals by Date:

• August 22: Ex-Dividend Date, Dividend Record Date, Marubozu White
• August 28: Bearish Engulfing
• August 27: Shooting Star (bearish signal)
• August 29: WR Oversold

Key Insights: The technical side is weak, and it is suggested to avoid the stock. Bearish signals dominate (4 vs 1 bullish), and there is a clear risk of price decline.

Conclusion

While analysts are bullish and fundamentals show a modestly positive score, the technical indicators and market trends suggest caution. Consider waiting for a clearer trend reversal before entering or adding to positions in Jacobs Solutions. Watch for upcoming earnings and any follow-up on the recent antitrust lawsuit involving the UFC, as these could have broader market implications.