Jacobs Story

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J -- USA Stock  

USD 90.42  0.40  0.44%

It feels like Jacobs Engineering may not recover as fast as we have hopped for as its price went down 0.04% today. The firm's current daily volatility is 2.94 percent, with a beta of 0.16 and an alpha of 0.07 over DOW. While many traders are getting carried away by overanalyzing market volatility, it is reasonable to examine Jacobs Engineering Group based on how it reacts to the recent economic swings. I will address the reasons why this entity does not get much respect from traders under the current market uncertainty.
Published over a month ago
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Is Jacobs Engineering (NYSE:J) way too risky for millennials?
Jacobs Engineering Group has accumulated roughly 1.84 B in cash with (296.24 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 14.12. Jacobs Engineering has accumulated 4.05 B in total debt with debt to equity ratio (D/E) of 0.72, which looks OK as compared to the sector. The entity has a current ratio of 1.93, which is considered satisfactory as compared to similar companies.
Investing in Jacobs Engineering, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Jacobs Engineering along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.

How important is Jacobs Engineering's Liquidity

Jacobs Engineering financial leverage refers to using borrowed capital as a funding source to finance Jacobs Engineering Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Jacobs Engineering financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Jacobs Engineering's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Jacobs Engineering, but it might be worth checking our own buy vs. sell analysis

Jacobs Engineering Correlation with Peers

Investors in Jacobs can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Jacobs Engineering Group. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Jacobs Engineering and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Jacobs is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Jacobs for more details

Breaking down Jacobs Engineering Further

We consider Jacobs Engineering very steady. Jacobs Engineering holds Efficiency (Sharpe) Ratio of 0.0393, which attests that the entity had 0.0393% of return per unit of risk over the last month. Our standpoint towards determining the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Jacobs Engineering, which you can use to evaluate future volatility of the firm. Please check out Jacobs Engineering Market Risk Adjusted Performance of 0.5991, risk adjusted performance of 0.0622, and Downside Deviation of 3.48 to validate if the risk estimate we provide is consistent with the expected return of 0.12%.
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Jacobs Engineering has 86 percent chance to finish below $87 next week

Standard deviation is down to 2.96. It may signify a possible volatility plunge. As of the 3rd of August, Jacobs Engineering retains the Market Risk Adjusted Performance of 0.5991, downside deviation of 3.48, and Risk Adjusted Performance of 0.0622. Jacobs Engineering technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Simply put, you can use this information to find out if the firm will indeed mirror its model of historical price patterns, or the prices will eventually revert. We have analyzed nineteen technical drivers for Jacobs Engineering, which can be compared to its competitors. Please check out Jacobs Engineering jensen alpha, and the relationship between the coefficient of variation and potential upside to decide if Jacobs Engineering is priced fairly, providing market reflects its last-minute price of 85.35 per share. Given that Jacobs Engineering Group has jensen alpha of 0.0675, we strongly advise you to confirm Jacobs Engineering's regular market performance to make sure the company can sustain itself at a future point.

Our Final Take On Jacobs Engineering

Although many other companies in the engineering & construction industry are either recovering or due for a correction, Jacobs may not be as strong as the others in terms of longer-term growth potentials. The inconsistency in the assessment between current Jacobs valuation and our trade advice on Jacobs Engineering is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Jacobs Engineering.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Jacobs Engineering Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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