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.
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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