5-Star Stocks Poised to Pop: Jacobs Engineering

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Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Jacobs Engineering (NYSE: JEC) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

With that in mind, let's take a closer look at Jacobs Engineering's business, and see what CAPS investors are saying about the stock right now.

Jacobs facts

Headquarters (founded)

Pasadena, California (1957)

Market Cap

$3.64 billion

Industry

Construction and engineering

TTM Revenue

$11.25 billion

Management

CEO Craig Martin
CFO John Prosser, Jr.

Return on Equity (average last three years)

17.8%

Competitors

Fluor (NYSE: FLR)
KBR (NYSE: KBR)

CAPS members bullish on JEC also bullish on

Apple (Nasdaq: AAPL)
Transocean (NYSE: RIG)

CAPS members bearish on JEC also bearish on

Hewlett-Packard (NYSE: HPQ)
Citigroup (NYSE: C)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 854 of the 879 members who have rated Jacobs -- some 97% -- believe the stock will outperform the S&P 500 going forward. These Foolish bulls include Tomcat1066 and HSWFool.

In late October, Tomcat1066 wrote that Jacobs is: "well diversified in a variety of industries including oil, auto manufacture, and construction. In addition, they are the largest contractor for NASA and have a fair amount of contracts with the Department of Defense which should position them well to weather any coming economic troubles."

In a pitch from one week earlier, HSWFool agrees, writing:

They are well respected and sought after to build and more importantly, to rebuild roads, bridges, tunnels airports and other big ticket item and specialized construction jobs. They have a portfolio of back-log contract work nearly 95% of which is with governments, multinational companies etc. The United States will be spending trillions of dollars in the years to come to rebuild its roads, bridges and tunnels. Be there to get some of that money in Jacobs Engineering's future profits.

What do you think about Jacobs, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Closed for 15 months – opening 10 days only! Get notified ahead of time as our expert portfolio manager invests $1 MILLION in the best opportunities from across The Motley Fool’s premium investment services. This is the first open since August 2008, by invitation only. Enter email below.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Apple is a Motley Fool Stock Advisor pick. The Fool's disclosure policy always gets a perfect score.

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Related Tickers

11/9/2009 4:00 PM
FLR $48.01 Up +2.61 +5.75%
Fluor Corp (NEW) CAPS Rating: *****
JEC $45.29 Up +1.48 +3.38%
Jacobs Engineering… CAPS Rating: *****
RIG $88.15 Up +2.75 +3.22%
Transocean, Inc. CAPS Rating: *****
HPQ $49.99 Up +0.83 +1.69%
Hewlett-Packard Co… CAPS Rating: ***
AAPL $201.46 Up +7.12 +3.66%
Apple, Inc. CAPS Rating: ***
C $4.19 Up +0.13 +3.20%
Citigroup, Inc. CAPS Rating: **
KBR $21.04 Up +0.76 +3.75%
KBR, Inc. CAPS Rating: ****

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