Trade-Ideas LLC identified Jacobs Engineering Group ( JEC) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Jacobs Engineering Group as such a stock due to the following factors:

  • JEC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $43.7 million.
  • JEC has traded 844,226 shares today.
  • JEC traded in a range 278.3% of the normal price range with a price range of $2.52.
  • JEC traded above its daily resistance level (quality: 95 days, meaning that the stock is crossing a resistance level set by the last 95 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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More details on JEC:

Jacobs Engineering Group Inc. provides technical, professional, and construction services to various industrial, commercial, and governmental clients. JEC has a PE ratio of 15. Currently there are 7 analysts that rate Jacobs Engineering Group a buy, 1 analyst rates it a sell, and 8 rate it a hold.

The average volume for Jacobs Engineering Group has been 1.4 million shares per day over the past 30 days. Jacobs Engineering Group has a market cap of $5.3 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.49 and a short float of 3.7% with 4.66 days to cover. Shares are down 5.2% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Jacobs Engineering Group as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including poor profit margins, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Construction & Engineering industry. The net income increased by 40.4% when compared to the same quarter one year prior, rising from $64.84 million to $91.06 million.
  • JEC's debt-to-equity ratio is very low at 0.16 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, JEC has a quick ratio of 1.54, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Construction & Engineering industry and the overall market on the basis of return on equity, JACOBS ENGINEERING GROUP INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • The gross profit margin for JACOBS ENGINEERING GROUP INC is rather low; currently it is at 17.94%. It has decreased from the same quarter the previous year.
  • Net operating cash flow has declined marginally to $282.57 million or 2.38% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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