Strength Seen in Jacobs Solutions (J): Can Its 3.7% Jump Turn into More Strength?
Jacobs Solutions (J) shares rallied 3.7% in the last trading session to close at $136.18. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 3.1% loss over the past four weeks.
Improved segmental performances, solid backlog, acquisitions and efforts to focus on high-value business mostly likely have induced bullish sentiments among investors.
This construction and technical services company is expected to post quarterly earnings of $2.03 per share in its upcoming report, which represents a year-over-year change of +12.8%. Revenues are expected to be $4.14 billion, up 6.6% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Jacobs Solutions, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on J going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Jacobs Solutions belongs to the Zacks Technology Services industry. Another stock from the same industry, Ecovyst (ECVT), closed the last trading session 1.2% higher at $9.77. Over the past month, ECVT has returned -3.8%.
Ecovyst's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.21. Compared to the company's year-ago EPS, this represents a change of -8.7%. Ecovyst currently boasts a Zacks Rank of #4 (Sell).
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Jacobs Solutions Inc. (J) : Free Stock Analysis Report
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