Finance Halo
Company Overview
Jacobs Solutions Inc. (J) is a global provider of consulting, technical, and construction services. The company operates through two main segments: People & Places Solutions (P&PS) and Critical Mission Solutions (CMS). P&PS focuses on infrastructure, water, environment, and buildings, while CMS serves government and highly regulated industries, including aerospace, defense, and space. Jacobs holds a significant position in the engineering and construction industry, with a strong emphasis on technology and innovation to drive its solutions.
Price Action Analysis
The daily chart shows a recent period of consolidation following a significant price drop in late November. Since then, the stock has been trading in a range, with prices generally fluctuating between approximately $130 and $155. Recently, there has been an uptick in price and volume, suggesting a potential breakout from this consolidation. The daily chart indicates an attempt to move above the $145-$150 resistance zone.
The weekly chart reveals a longer-term uptrend that began in early 2023, with the stock reaching highs around $170 in late 2023. After a period of decline, the stock entered a consolidation phase. The recent price action on the daily chart, with increased volume on upswings, could signal the beginning of a new upward move within the broader weekly uptrend. The weekly chart shows resistance around the $170 mark.
News & Catalysts
Recent news surrounding Jacobs Solutions Inc. (J) indicates a positive outlook, driven by strong financial performance and increased guidance.
- Strong Q1 2026 Earnings and Raised Guidance: Jacobs reported Q1 2026 adjusted EPS of $1.53, surpassing analyst expectations. The company also raised its full-year 2026 guidance for revenue and EPS growth. This positive financial news suggests improving business fundamentals and potential for future profitability. (Source: Various financial news outlets, citing company reports)
- Increased Backlog and AI Tailwinds: The company's backlog has grown significantly, bolstered by strong demand in data center bookings, which is likely linked to the AI capital expenditure cycle. This indicates substantial future revenue streams and highlights Jacobs' strategic positioning in a high-growth area. (Source: Various financial news outlets)
- Dividend Increase and Acquisition: Jacobs announced a 12.5% increase in its quarterly dividend, signaling confidence in its financial stability and commitment to returning value to shareholders. The ongoing acquisition of PA Consulting is also expected to be accretive, potentially driving further growth. (Source: Various financial news outlets)
These catalysts likely contributed to the recent uptick in price and volume, as investors react positively to the company's growth prospects and financial health.
Fundamental Analysis
SEO_TITLE: Jacobs Solutions Inc. (J) Breakout Analysis and Price Targets SEO_DESCRIPTION: In-depth analysis of Jacobs Solutions Inc. (J), including price action, technical indicators, fundamental data, and key support/resistance levels for potential breakout trading opportunities.
Company Overview
Jacobs Solutions Inc. (J) is a global provider of specialized products and technology solutions, operating primarily in two segments: Aerospace, Technology, and Nuclear, and People & Places. The company offers a wide range of services, including advanced manufacturing, cyber solutions, and consulting for infrastructure and advanced facilities. Jacobs Solutions is a significant player in the industrial technology and engineering services sector, with a strong focus on innovation and sustainability.
Price Action Analysis
Daily Chart (3-month): The daily chart displays a period of consolidation following a sharp decline in late November. The price action shows a series of lower highs and lower lows initially, followed by a period of trading within a range. More recently, there's an indication of a potential upward breakout from this consolidation. Volume has been increasing in the last few trading sessions, suggesting growing interest and potentially confirming the breakout. However, the candles show some choppiness, indicating a battle between buyers and sellers.
Weekly Chart (2-year): The weekly chart reveals a longer-term uptrend that experienced a significant peak in October and November of the previous year, followed by a correction. Since then, the price has been in a rebuilding phase, forming a base. The recent price action on the daily chart appears to be the beginning of an attempt to move higher within this broader trend. A key resistance level to watch would be the previous highs reached before the correction. Volume on the weekly chart has been somewhat mixed but shows a general increase in activity during periods of price advance.
News & Catalysts
Recent Earnings and Guidance: Jacobs Solutions reported strong first-quarter fiscal 2026 results, with revenue and adjusted earnings per share exceeding analyst expectations. The company also announced a significant increase in its backlog, indicating robust future business prospects. Jacobs Solutions has provided full-year earnings guidance between $6.95 and $7.30 per share. (Source: Various Financial News Outlets, Early February 2026)
Analyst Sentiment: The consensus among analysts covering Jacobs Solutions is generally positive, with a majority rating the stock as a "Buy." However, price targets vary, and there have been some recent adjustments and downgrades, suggesting a nuanced view from the analyst community. The average 12-month price target is around $154-$157, with a high of $180 and a low of $137. (Source: Various Financial News Outlets, Early February 2026)
These updates suggest that positive earnings and a strong backlog are likely influencing the recent upward price momentum. The mixed analyst sentiment, however, indicates that investors should closely monitor further developments and guidance.
Fondamental analysis
Key Financial Metrics
| Metric | Value | YoY Change |
|---|---|---|
| Revenue | $3.29B | +12.3% |
| Adj. EPS | $1.53 | N/A |
| Backlog | $26.31B | +20.6% |
Key Takeaways
- Strong Revenue Growth: The company demonstrated significant top-line growth, exceeding expectations.
- Profitability: Adjusted EPS also came in strong, indicating healthy profit margins.
- Robust Backlog: The substantial increase in backlog points to strong future revenue visibility and business pipeline.
Earnings & Estimates
| Metric | Latest | Consensus | Guidance |
|---|---|---|---|
| Q1 FY26 Revenue | $3.29B | ~$3.15B | N/A |
| Q1 FY26 Adj. EPS | $1.53 | ~$1.45 | N/A |
| FY26 EPS Guidance | N/A | N/A | $6.95 - $7.30 |
Analyst Price Targets
| Analyst Firm | Rating | Price Target | Date |
|---|---|---|---|
| Wells Fargo | N/A | $137 | 2026-01-23 |
| Citigroup | N/A | $180 | 2025-11-21 |
| Goldman Sachs | Buy | $158 | N/A |
| KeyBanc | Overweight | $154 | N/A |
| HSBC | N/A | $144 | N/A |
Average Price Target: ~$154.74 - $157.57
Market & Sentiment Context
Market Context: The broader market sentiment appears cautiously optimistic, with a focus on companies demonstrating consistent revenue growth and strong forward guidance. Sectors related to technology, infrastructure, and defense, where Jacobs Solutions operates, are often influenced by government spending and long-term investment trends.
Catalysts:
- Strong Q1 Earnings: Exceeding expectations on revenue and EPS provides immediate positive momentum.
- Growing Backlog: A significant increase in backlog offers visibility and confidence in future performance.
- Analyst Upgrades/Positive Commentary: While mixed, the overall analyst sentiment leans positive, with several price targets suggesting upside potential.
Investor Sentiment: The recent uptick in volume accompanying the price increase suggests growing investor interest and conviction in the breakout. This could indicate accumulation and a potential shift from consolidation to an upward trend. However, the choppiness in daily price action warrants caution, as some profit-taking or resistance could emerge.
Investment Outlook
Jacobs Solutions Inc. (J) is showing signs of a constructive breakout from a consolidation phase. The combination of strong recent earnings, an expanding backlog, and increasing daily volume supports the potential for further upside. The company's positioning in key growth sectors also provides a favorable backdrop.
Key Buy/Sell Levels
The current price for Jacobs Solutions Inc. (J) is $143.73.
Support Levels:
-
$135.00 - $137.00: This zone represents the lower bound of the recent consolidation and coincides with the lower end of some analyst price targets. It has been tested and held during the consolidation period.
- Distance from current price: Approximately $6.73 - $8.73 (4.68% - 6.07%) lower.
-
$125.00 - $128.00: This is a significant support level observed on the weekly chart, representing a prior consolidation area before the major uptrend began. It has not been touched recently.
- Distance from current price: Approximately $15.73 - $18.73 (10.95% - 13.03%) lower.
Resistance Levels:
-
$145.00 - $147.00: This area represents the immediate resistance formed by the upper boundary of the recent consolidation and the current trading range. It is currently being tested.
- Distance from current price: Approximately $1.27 - $3.27 (0.88% - 2.27%) higher.
- This level is crucial as a confirmed breakout above it would validate the current upward move.
-
$155.00 - $158.00: This range corresponds to the previous all-time highs reached before the correction in late last year. It also aligns with the upper end of the average analyst price targets. This will be a key area to watch for potential profit-taking or further upward momentum.
- Distance from current price: Approximately $11.27 - $14.27 (7.84% - 9.93%) higher.
I've drawn the following key levels:
- Resistance: A red line at $146.00 representing the immediate resistance. A blue line at $156.00 marking a significant historical resistance and potential upside target.
- Support: A green line at $136.00 indicating the lower boundary of the recent consolidation. Another green line at $126.50 representing a more substantial historical support level.
The immediate resistance at $146.00 is currently being tested. A decisive close above this level, especially with strong volume, would be a positive signal for a continued breakout. The support level at $136.00 previously held the price during the consolidation and would serve as a key area to watch if the price were to retrace.
Summary & Takeaways
Jacobs Solutions Inc. (J) is exhibiting a promising breakout setup from a multi-month consolidation. The recent surge in daily volume accompanying the price move higher suggests increasing buyer conviction. Fundamentally, strong first-quarter earnings, a growing backlog, and positive analyst sentiment provide a solid foundation for potential continued upside.
Key points:
- Breakout Confirmation: Watch for a sustained move above the immediate resistance at $146.00, ideally with continued volume support.
- Upside Potential: If the breakout holds, the next significant resistance target is in the $155.00-$158.00 range, aligning with previous highs and analyst price targets.
- Risk Management: Key support levels to monitor on any pullback are $136.00 and subsequently $126.50.
- Fundamental Strength: The company's financial performance and forward-looking guidance are supportive of the bullish technical picture.
Investors should consider this a potential continuation play, with careful attention to the $146.00 resistance level for immediate confirmation.