Why Jacobs Engineering Group Inc. (JEC) Stock Lost Altitude Today

Jacobs Engineering Group Inc. (NYSE:JEC) is one of the worst performers on the stock market today. At current price of $86.35, the shares have already lost -2.28 points (-2.57% lower) from its previous close of $88.63. Should you buy or avoid them? The stock sets an active trading volume day with a reported 551239 contracts so far this session. JEC shares had a relatively better volume day versus average trading capacity of 1.01 million shares, but with a 0.13 billion float and a -2.34% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for JEC stock indicates that the average analyst price target is $102.77 per share. This means the stock has a potential increase of 19.02% from where the JEC share price has been trading recently which is between $87.19 and $88.86.

During the recent trading session for Jacobs Engineering Group Inc. (NYSE:JEC), the company witnessed their stock drop by $-4.92 over a week and tumble down $-10.78 from the price 20 days ago. When compared to their established 52-week high of $98.08, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 07/11/19. The recent low of $55.17 stood for a -11.96% since 12/26/18, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.33 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for Jacobs Engineering Group Inc., the two-week RSI stands at 29.59. This figure suggests that JEC stock, for now, is overbought, meaning that the shares are not stable in terms of price movement. The stochastic readings, on the other hand, based on the current JEC readings is similarly very revealing as it has a stochastic reading of 6.45% at this stage. This figure means that JEC share price today is being overbought.

Technical chart claims that Jacobs Engineering Group Inc. (JEC) would settle between $89.26/share to $89.9/share level. However, if the stock price goes below the $87.59 mark, then the market for Jacobs Engineering Group Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $86.56 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -2.71. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at BofA/Merrill, assumed coverage of JEC assigning Buy rating, according to their opinion released on August 22. Barclays, analysts launched coverage of Jacobs Engineering Group Inc. (NYSE:JEC) stock with a Overweight recommendation, according to their flash note issued to investors on April 30. Analysts at Citigroup released an upgrade from Neutral to Buy for the stock, in a research note that dated back to October 22.

JEC equity has an average rating of 2.23, with the figure leaning towards a bullish end. 12 analysts who tracked the company were contacted by Reuters. Amongst them, 1 rated the stock as a hold while the remaining 11 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 11 analysts rated Jacobs Engineering Group Inc. (NYSE:JEC) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, JEC stock price is currently trading at 13.62X forward 12-month Consensus EPS estimates, and its P/E ratio is 42.4 while for the average stock in the same group, the multiple is 15. Jacobs Engineering Group Inc. current P/B ratio of 2.1 means it is trading at a premium against its industry’s 1.8.