Is Jacobs Solutions Stock Built to Withstand More Downside?
Jacobs Solutions (J) stock is down 10.9% in a day. The recent slide reflects concerns around Jacobs’ weaker earnings, higher tax rate, and investment value drop, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Jacobs Solutions stands today.
- Size: Jacobs Solutions is a $16 Bil company with $12 Bil in revenue currently trading at $129.17.
- Fundamentals: Last 12 month revenue growth of 61.5% and operating margin of 7.2%.
- Liquidity: Has Debt to Equity ratio of 0.19 and Cash to Assets ratio of 0.11
- Valuation: Jacobs Solutions stock is currently trading at P/E multiple of 31.5 and P/EBIT multiple of 17.4
- Has returned (median) 76.2% within a year following sharp dips since 2010. See J Dip Buy Analysis.
These metrics point to a Moderate operational performance, alongside High valuation – making the stock Unattractive. For details, see Buy or Sell J Stock
That brings us to the key consideration for investors worried about this fall: how resilient is J stock if markets turn south? This is where our downturn resilience framework comes in. Suppose J stock falls another 20-30% to $90 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
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2022 Inflation Shock
- J stock fell 26.8% from a high of $148.16 on 21 April 2022 to $108.49 on 30 September 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 7 March 2024
- Since then, the stock increased to a high of $164.44 on 21 October 2025 , and currently trades at $129.17
| J | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -26.8% | -25.4% |
| Time to Full Recovery | 524 days | 464 days |
2020 Covid Pandemic
- J stock fell 39.3% from a high of $103.86 on 21 February 2020 to $63.01 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 16 November 2020
| J | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -39.3% | -33.9% |
| Time to Full Recovery | 238 days | 148 days |
2018 Correction
- J stock fell 31.7% from a high of $80.92 on 7 November 2018 to $55.24 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 20 June 2019
| J | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -31.7% | -19.8% |
| Time to Full Recovery | 178 days | 120 days |
2008 Global Financial Crisis
- J stock fell 74.1% from a high of $101.58 on 3 January 2008 to $26.27 on 20 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 20 February 2020
| J | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -74.1% | -56.8% |
| Time to Full Recovery | 4109 days | 1480 days |
Feeling jittery about J stock? Consider portfolio approach.
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Individual stocks are unpredictable. A smart portfolio keeps you invested, limits downside shocks, and provides upside exposure
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.