Latest news with #JacobsSolutions
Yahoo
5 days ago
- Business
- Yahoo
1 Services Stock for Long-Term Investors and 2 to Ignore
Business services providers thrive by solving complex operational challenges for their clients, allowing them to focus on their secret sauce. Still, investors are uneasy as firms face challenges from AI-driven disruptors and tightening corporate budgets. These doubts have caused the industry to lag recently as services stocks have collectively shed 10.9% over the past six months. This drawdown was worse than the S&P 500's 1.9% decline. Only some companies are subject to these dynamics, however, and a handful of high-quality businesses can deliver earnings growth in any environment. Taking that into account, here is one resilient services stock at the top of our wish list and two we're passing on. Market Cap: $15.1 billion With a workforce of approximately 45,000 professionals tackling complex challenges from water scarcity to cybersecurity, Jacobs Solutions (NYSE:J) provides engineering, consulting, and technical services focused on infrastructure, sustainability, and advanced technology solutions. Why Do We Pass on J? Flat sales over the last two years suggest it must find different ways to grow during this cycle Sales pipeline suggests its future revenue growth likely won't meet our standards as its backlog hasn't budged over the past two years Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 9.6% annually Jacobs Solutions is trading at $125.84 per share, or 19.6x forward P/E. Dive into our free research report to see why there are better opportunities than J. Market Cap: $3.85 billion With over 120 offices across 33 states and a team of more than 6,700 professionals, CBIZ (NYSE:CBZ) provides accounting, tax, benefits, insurance brokerage, and advisory services to help small and mid-sized businesses manage their finances and operations. Why Does CBZ Give Us Pause? Free cash flow margin dropped by 10.2 percentage points over the last five years, implying the company increased its investment activities to fend off competitors Below-average returns on capital indicate management struggled to find compelling investment opportunities 6× net-debt-to-EBITDA ratio shows it's overleveraged and increases the probability of shareholder dilution if things turn unexpectedly CBIZ's stock price of $72 implies a valuation ratio of 18.9x forward P/E. To fully understand why you should be careful with CBZ, check out our full research report (it's free). Market Cap: $2.32 billion Founded in 2002 during a time of significant regulatory change in corporate America, Huron Consulting Group (NASDAQ:HURN) is a professional services company that helps organizations develop growth strategies, optimize operations, and implement digital transformation solutions. Why Do We Like HURN? Market share has increased this cycle as its 13.1% annual revenue growth over the last two years was exceptional Adjusted operating margin expanded by 8.6 percentage points over the last five years as it scaled and became more efficient Share repurchases have amplified shareholder returns as its annual earnings per share growth of 34.6% exceeded its revenue gains over the last two years At $145.25 per share, Huron trades at 19.7x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-05-2025
- Business
- Yahoo
Here's What We Like About Jacobs Solutions' (NYSE:J) Upcoming Dividend
Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Jacobs Solutions Inc. (NYSE:J) is about to trade ex-dividend in the next four days. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled to receive a dividend. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade takes at least one business day to settle. This means that investors who purchase Jacobs Solutions' shares on or after the 23rd of May will not receive the dividend, which will be paid on the 20th of June. The company's next dividend payment will be US$0.32 per share, and in the last 12 months, the company paid a total of US$1.28 per share. Calculating the last year's worth of payments shows that Jacobs Solutions has a trailing yield of 1.0% on the current share price of US$129.17. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! So we need to check whether the dividend payments are covered, and if earnings are growing. We've discovered 1 warning sign about Jacobs Solutions. View them for free. Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Fortunately Jacobs Solutions's payout ratio is modest, at just 39% of profit. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend. Thankfully its dividend payments took up just 25% of the free cash flow it generated, which is a comfortable payout ratio. It's positive to see that Jacobs Solutions's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. View our latest analysis for Jacobs Solutions Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If earnings fall far enough, the company could be forced to cut its dividend. With that in mind, we're encouraged by the steady growth at Jacobs Solutions, with earnings per share up 8.5% on average over the last five years. The company is retaining more than half of its earnings within the business, and it has been growing earnings at a decent rate. Organisations that reinvest heavily in themselves typically get stronger over time, which can bring attractive benefits such as stronger earnings and dividends. The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Jacobs Solutions has delivered 9.9% dividend growth per year on average over the past eight years. We're glad to see dividends rising alongside earnings over a number of years, which may be a sign the company intends to share the growth with shareholders. Is Jacobs Solutions worth buying for its dividend? Earnings per share growth has been growing somewhat, and Jacobs Solutions is paying out less than half its earnings and cash flow as dividends. This is interesting for a few reasons, as it suggests management may be reinvesting heavily in the business, but it also provides room to increase the dividend in time. It might be nice to see earnings growing faster, but Jacobs Solutions is being conservative with its dividend payouts and could still perform reasonably over the long run. There's a lot to like about Jacobs Solutions, and we would prioritise taking a closer look at it. With that in mind, a critical part of thorough stock research is being aware of any risks that stock currently faces. To help with this, we've discovered 1 warning sign for Jacobs Solutions that you should be aware of before investing in their shares. A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-05-2025
- Business
- Yahoo
Jacobs Solutions Inc. (J): Among the Top Dividend Challengers in 2025
We recently published a list of Dividend Challengers 2025: Top 25. In this article, we are going to take a look at where Jacobs Solutions Inc. (NYSE:J) stands against other dividend challenger stocks. Dividend Challengers refers to US-listed companies that have raised their dividends every year for a minimum of five, and less than ten, consecutive years. These companies have demonstrated a relatively recent commitment to sharing profits with shareholders through dividends. Investors usually gravitate towards such firms because historically, dividend growers outperform the returns of the broader market. Moreover, most of these firms have a track record of exhibiting lower price volatility, which makes them favorable to those looking for stable income. Investor interest in stocks with reliable dividend growth remains strong due to long-term investment potential. As a result, many of these financially sound firms become targets for investors looking to manage risk without sacrificing growth. The Fidelity Equity-Income Fund and the Fidelity Global Equity Income Fund portfolios, managed by Ramona Persaud, seek stable dividend-paying firms with attractive valuations. She pointed out that declining interest rates tend to make dividend stocks more appealing than bonds due to relatively attractive yields. Indeed, Persaud argued lower rates could foster a more broad-based rally for stocks beyond the market gains, which have been largely concentrated on a handful of large-cap growth names. Her focus is on well-performing firms with reliable cash flows and strong, growing dividends. According to analysts, investors can adopt a strategy that balances both income and growth by focusing on dividend growers. Historically, they have shown less volatility and often outperformed the broader market, including benchmarks like the S&P Equal Weight Index. A report from Guggenheim found that between May 2005 and December 2024, companies that initiated or raised their dividends achieved an average annual return of 10.5%, compared to just 5.5% for those that reduced or suspended payouts. By contrast, the overall market averaged a 10.4% return during the same period, slightly lagging behind the dividend growers. The report also emphasized that dividend growth strategies tend to perform well across different market environments, both bullish and bearish. This makes them a compelling option for investors seeking long-term returns while aiming to protect their portfolios during downturns. Bank of America also noted that dividend-paying stocks helped stabilize portfolios during the turbulent month of March. As trade policy uncertainty under President Donald Trump rattled markets, value and dividend-oriented names held up better. In an April 11 report, BofA's quant strategist Nigel Tupper highlighted these trends and pointed to several top-performing dividend stocks during the market's choppy period.
Yahoo
16-04-2025
- Business
- Yahoo
3 Reasons J is Risky and 1 Stock to Buy Instead
Over the last six months, Jacobs Solutions shares have sunk to $117.99, producing a disappointing 16.5% loss - worse than the S&P 500's 8.3% drop. This was partly driven by its softer quarterly results and may have investors wondering how to approach the situation. Is now the time to buy Jacobs Solutions, or should you be careful about including it in your portfolio? Get the full breakdown from our expert analysts, it's free. Despite the more favorable entry price, we're sitting this one out for now. Here are three reasons why you should be careful with J and a stock we'd rather own. With a workforce of approximately 45,000 professionals tackling complex challenges from water scarcity to cybersecurity, Jacobs Solutions (NYSE:J) provides engineering, consulting, and technical services focused on infrastructure, sustainability, and advanced technology solutions. In addition to reported revenue, backlog is a useful data point for analyzing Government & Technical Consulting companies. This metric shows the value of outstanding orders that have not yet been executed or delivered, giving visibility into Jacobs Solutions's future revenue streams. Jacobs Solutions's backlog came in at $21.85 billion in the latest quarter, and it averaged 13.1% year-on-year declines over the last two years. This performance was underwhelming and shows the company is not winning new orders. It also suggests there may be increasing competition or market saturation. Forecasted revenues by Wall Street analysts signal a company's potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite. Over the next 12 months, sell-side analysts expect Jacobs Solutions's revenue to stall. Although this projection indicates its newer products and services will spur better top-line performance, it is still below the sector average. We track the long-term change in earnings per share (EPS) because it highlights whether a company's growth is profitable. Jacobs Solutions's EPS grew at an unimpressive 4% compounded annual growth rate over the last five years. On the bright side, this performance was better than its 2% annualized revenue declines and tells us management adapted its cost structure in response to a challenging demand environment. Jacobs Solutions falls short of our quality standards. After the recent drawdown, the stock trades at 19.6× forward price-to-earnings (or $117.99 per share). This valuation tells us it's a bit of a market darling with a lot of good news priced in - you can find better investment opportunities elsewhere. We'd suggest looking at a safe-and-steady industrials business benefiting from an upgrade cycle. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.
Yahoo
16-04-2025
- Business
- Yahoo
Professional Services Stocks Q3 Teardown: Jacobs Solutions (NYSE:J) Vs The Rest
Let's dig into the relative performance of Jacobs Solutions (NYSE:J) and its peers as we unravel the now-completed Q3 professional services earnings season. The sector stands to benefit from ongoing digital transformation, increasing corporate demand for cost efficiencies, and the growing complexity of regulatory and cybersecurity landscapes. For those that invest wisely, AI and automation capabilities could emerge as competitive advantages, enhancing process efficiencies for the companies themselves as well as their clients. On the flip side, AI could be a headwind as well as the technology could lower the barrier to entry in the space and give rise to more self-service solutions. Additional challenges in the years ahead could include wage inflation for highly skilled talent and potential regulatory scrutiny on outsourcing practices—especially in industries like finance and healthcare where who has access to certain data matters greatly. The 6 professional services stocks we track reported a mixed Q3. As a group, revenues missed analysts' consensus estimates by 0.6% while next quarter's revenue guidance was 2% above. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 10.7% since the latest earnings results. With a workforce of approximately 45,000 professionals tackling complex challenges from water scarcity to cybersecurity, Jacobs Solutions (NYSE:J) provides engineering, consulting, and technical services focused on infrastructure, sustainability, and advanced technology solutions. Jacobs Solutions reported revenues of $2.96 billion, up 45.7% year on year. This print fell short of analysts' expectations by 2.6%. Overall, it was a slower quarter for the company with a significant miss of analysts' backlog estimates. Jacobs' Chair and CEO Bob Pragada commented, "Our focus on the transformed portfolio is already having a positive impact on results. We started FY25 with solid performance across our business, led by strong Water and Life Sciences revenue growth within Infrastructure & Advanced Facilities. As we look ahead to the rest of the fiscal year, we continue to see tailwinds from robust bookings over the last several quarters as well as a healthy pipeline across our end markets. We are pleased with our first quarter results and that we've increased our adjusted EPS outlook early in our fiscal year." The stock is down 12.2% since reporting and currently trades at $121.85. Read our full report on Jacobs Solutions here, it's free. With over five decades of experience supporting national security missions, Science Applications International Corporation (NASDAQ:SAIC) provides technical, engineering, and enterprise IT services primarily to U.S. government agencies and military branches. SAIC reported revenues of $1.98 billion, up 4.3% year on year, outperforming analysts' expectations by 2.2%. The business had an exceptional quarter with a solid beat of analysts' EPS estimates and an impressive beat of analysts' full-year EPS guidance estimates. SAIC pulled off the highest full-year guidance raise among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 14.5% since reporting. It currently trades at $106. Is now the time to buy SAIC? Access our full analysis of the earnings results here, it's free. Processing approximately 100 million background checks annually across more than 200 countries and territories, First Advantage (NASDAQ:FA) provides employment background screening, identity verification, and compliance solutions to help companies manage hiring risks. First Advantage reported revenues of $307.1 million, up 51.6% year on year, falling short of analysts' expectations by 3.4%. It was a disappointing quarter as it posted a significant miss of analysts' full-year EPS guidance estimates. First Advantage delivered the fastest revenue growth but had the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 29.4% since the results and currently trades at $13.08. Read our full analysis of First Advantage's results here. Pioneering the concept of "agile aerospace" with hundreds of small but powerful satellites, Planet Labs (NYSE:PL) operates the world's largest fleet of Earth observation satellites, capturing daily images of our planet to provide insights on deforestation, agriculture, and climate change. Planet Labs reported revenues of $61.27 million, up 10.6% year on year. This number missed analysts' expectations by 3.1%. Zooming out, it was a mixed quarter as it also recorded a solid beat of analysts' EPS estimates but revenue guidance for next quarter meeting analysts' expectations. The stock is flat since reporting and currently trades at $4.09. Read our full, actionable report on Planet Labs here, it's free. Operating at the intersection of policy, technology, and implementation for over five decades, ICF International (NASDAQ:ICFI) provides professional consulting services and technology solutions to government agencies and commercial clients across energy, health, environment, and security sectors. ICF International reported revenues of $496.3 million, up 3.8% year on year. This print met analysts' expectations. It was a very strong quarter as it also logged revenue guidance for the next quarter, exceeding analysts' expectations and a narrow beat of analysts' EPS estimates. The stock is down 15.1% since reporting and currently trades at $84.91. Read our full, actionable report on ICF International here, it's free. Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. 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