Jacobs Engineering provides a broad range of project services; process, scientific and systems consulting services; operations and maintenance services; and construction services. For the 3 months ended 12/31/00, revenues rose 15% to $929.2M. Net income totaled $20.1M, vs. a loss of $5.8M. Revenues reflect the growth from consulting services. Earnings also benefitted from the absence of the provision for litigation settlement in 1999.

April 24, 2001

JEC makes nice profits for itself by providing professional services in four areas; construction, scientific and systems consulting, operations and maintenance and full project services including engineering, design, and architectural services. Last week, JEC reported record quarterly revenue of $1.0 billion and posted profits of $0.79 a share. Future prospects also look good for the company because it has a backlog of $5.9 billion orders. JEC has been climbing nicely in price all year primarily because the economic slowdown has not hit its particular businesses. Last week, JEC reported record quarterly revenue of $1.0 billion and posted profits of $0.79 a share. Future prospects also look good for the company thanks to a backlog of $5.9 billion. Short-term momentum traders may want to consider adding to their JEC positions because the stock established a new high today of $62.14, which could bode well for another move higher. One positive consequence of today's move was the fact that the MACD avoided issuing a sell signal and is now pointing towards more price gains for JEC. Keep in mind, though, that the RSI is currently indicating an overbought condition. That said, the last time the RSI was at a similar level it just kept going.

Picked on April 24th @ $62.00
Change since picked +0.00
Stop Loss @ $58.00

May 3, 2001

JEC, a major construction engineering services provider, received two notable new contracts yesterday. The first contract, awarded from the Federal Aviation Administration, is for 8 years and worth $404 million. The terms of the contract call for JEC to provide a wide variety of design and building services for the FAA, which is looking to update its aging facilities across the country. Meanwhile, Sverdrup Technology, a subsidiary of JEC, received a potential $308 million contract to provide Technical and Engineering Acquisition Support (TEAS) for conventional weapons systems development and testing for the Air Force. These new contracts add to JEC's already impressive backlog of $5.9 billion in future business. Unfortunately all of this good news was not enough for JEC to push forward during today's market pullback. JEC did find some support just above its 10-DMA of $64.06 (our stop is slightly lower at $64.00). If JEC starts to rally tomorrow, one possible entry point may present itself if the stock can establish a new high above $66.95. The Money Flow and OBV have begun to retreat from their lofty levels but the RSI is no longer signaling a severely overbought condition.

Picked on April 24th @ $62.00
Change since picked +2.75
Stop Loss @ $64.00

May 1, 2001

JEC got off to a slow start this week. However, there was a positive report about the burgeoning demand for the type of construction engineering services that JEC provides that circulated through the news wires yesterday. It has been well documented that California has been woefully negligent in updating its energy infrastructure. When the state finally bites the bullet, it could lead to some new huge contracts for JEC, especially since the company is located in Pasadena, CA. Technically speaking, this stock is consolidating between support of $63.38 and resistance of $67.00. A break above $67.00 could result in a nice bullish move. Some traders might want to buy a break above this price, especially if midday volume exceeds 100,000 shares. A gap up to $68.00 or higher on tomorrow's opening might result in a bit of a pullback that may offer traders a better entry price. The MACD, Money Flow and OBV are all outstanding and point towards more gains in the future. However, the RSI is indicating a short term overbought condition. Therefore, one should be mindful of their stops (as always), just in case there is a pullback.

Picked on April 24th @ $62.00
Change since picked +4.50
Stop Loss @ $64.00

April 29, 2001

JEC, which offers a multitude of commercial construction and maintenance services, was one of the best performing stocks last week. It makes sense that sidelined cash is flowing into this stock. The company already reported solid earnings earlier this month and it has a huge backlog (just under $6 billion) going forward. JEC may be offering investors the best of both worlds, that being solid earnings and excellent growth at a reasonable price. Its P/E as of Friday was 22.18, which compares favorably with other companies in the construction service sector. Profit takers tried to take the stock down on Friday, but it recovered nicely and could be poised for further gains this week. A move above $67.00, which would establish a new high, may prove to be the next excellent entry point for momentum traders, especially if we see first hour trading volume exceed 100,000 shares. However, the RSI is now indicating an overbought condition; therefore traders should probably be cautious if JEC gaps up two or more points at the open. JEC's longer-term prospects look very promising because the MACD, OBV and Money Flow are all soaring.

Picked on April 24th @ $62.00
Change since picked +4.27
Stop Loss @ $64.00