Jacobs Engineering Group (JEC): Diversified Services' Featured Underachiever Of The Day

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Jacobs Engineering Group ( JEC) pushed the Diversified Services industry lower today making it today's featured Diversified Services laggard. The industry as a whole closed the day down 0.4%. By the end of trading, Jacobs Engineering Group fell 79 cents (-1.4%) to $54.34 on average volume. Throughout the day, 1.2 million shares of Jacobs Engineering Group exchanged hands as compared to its average daily volume of 928,200 shares. The stock ranged in price between $54.20-$55.68 after having opened the day at $55.48 as compared to the previous trading day's close of $55.13. Other companies within the Diversified Services industry that declined today were: USA Technologies ( USAT), down 5.7%, Digital Generation ( DGIT), down 5.5%, Food Technology Service ( VIFL), down 4.8%, and Industrial Services of America ( IDSA), down 4.7%.
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Jacobs Engineering Group Inc. provides technical, professional, and construction services to various industrial, commercial, and governmental clients worldwide. Jacobs Engineering Group has a market cap of $7.33 billion and is part of the services sector. The company has a P/E ratio of 18.7, above the S&P 500 P/E ratio of 17.7. Shares are up 29.5% year to date as of the close of trading on Monday. Currently there are nine analysts that rate Jacobs Engineering Group a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Jacobs Engineering Group as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Planet Payment ( PLPM), up 10.3%, Hertz Global Holdings ( HTZ), up 6.8%, Performant Financial ( PFMT), up 4.7%, and Rainmaker Systems ( RMKR), up 4.4%, were all gainers within the diversified services industry with Priceline.com ( PCLN) being today's featured diversified services industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the diversified services industry could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the diversified services industry could consider ProShares Ultra Short Consumer Sers ( SCC).

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