Jacobs Engineering Group Inc. : A bullish reaction is expected
Jacobs engineering group provides a broad range of construction services, operations and maintenance services for industrial clients around the world.
From a fundamental viewpoint, the company is trading at low level as shown by the “enterprise value/revenue” at 0.4x and a price earnings ratio is estimated at 13.5x. According to Thomson Reuters’consensus, the average target price is fixed at $51.7 which represents a potential of 30% compared to the cureent price.
After a strong fall as shown by the wide bearish gap, the USD 39.75 long-term support has allowed a technical rebound and a new bullish trend could happen in the next sessions. The technical indicators show an oversold situation.
In this case, we remain optimistic and we could look for a return towards a short-term resistance. Investors could take a buy position to target the USD 42. A stop loss will be fixed at USD 37.5.
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Alexandre Nutte
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| Profitability |
2013e |
2014e |
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Operating Margin (EBIT / Sales)
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5,88% |
5,97% |
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operating laverage (Delta EBIT / Delta Sales)
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2,04x |
1,16x |
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Net Margin (Net Profit / Revenue)
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3,71% |
3,80% |
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ROA (Net Profit / Asset)
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6,98% |
7,18% |
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ROE (Net Profit / Equities)
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10,3% |
10,2% |
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Rate of Dividend
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- |
- |
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