Stock Price Trends

Jacobs Solutions Inc. (J)

Jacobs Engineering Group Inc. (NYSE: J) is an American international technical professional services firm. The company provides technical, professional and construction services, as well as scientific and specialty consulting for a broad range of clients globally, including companies, organizations, and government agencies.

Stock Price Trends

Stock price trends estimated using linear regression.

Key facts

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 6.81% per annum.
  • J price at the close of July 26, 2024 was $145.98 and was higher than the top border of the primary price channel by $26.92 (22.61%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 15.53% per annum.
  • J price at the close of July 26, 2024 was inside the secondary price channel.
  • The direction of the secondary trend is opposite to the direction of the primary trend. This indicates a possible reversal in the direction of the primary trend.

Linear Regression Model

Model equation:
Yi = α + β × Xi + εi

Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)

Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)

where:

i - observation number
Yi - natural logarithm of J price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e


Primary Trend

Start date: March 9, 2021
End date: July 20, 2023

a = 5.0286

b = -0.0002

s = 0.0518

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0002) – 1
= -6.81%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0518) – 1
= 23.00%

March 9, 2021 calculations

Top border of price channel:

Exp(Y406)
= Exp(a + b × X406 + 2 × s)
= Exp(a + b × 589 + 2 × s)
= Exp(5.0286 + -0.0002 × 589 + 2 × 0.0518)
= Exp(5.0183)
= $151.15

Bottom border of price channel:

Exp(Y406)
= Exp(a + b × X406 – 2 × s)
= Exp(a + b × 589 – 2 × s)
= Exp(5.0286 + -0.0002 × 589 – 2 × 0.0518)
= Exp(4.8112)
= $122.88

July 20, 2023 calculations

Top border of price channel:

Exp(Y1,001)
= Exp(a + b × X1,001 + 2 × s)
= Exp(a + b × 1,452 + 2 × s)
= Exp(5.0286 + -0.0002 × 1,452 + 2 × 0.0518)
= Exp(4.8515)
= $127.93

Bottom border of price channel:

Exp(Y1,001)
= Exp(a + b × X1,001 – 2 × s)
= Exp(a + b × 1,452 – 2 × s)
= Exp(5.0286 + -0.0002 × 1,452 – 2 × 0.0518)
= Exp(4.6445)
= $104.01

Description

  • The primary trend is decreasing.
  • The decline rate of the primary trend is 6.81% per annum.
  • J price at the close of July 26, 2024 was $145.98 and was higher than the top border of the primary price channel by $26.92 (22.61%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: September 13, 2022
End date: July 26, 2024

a = 4.2587

b = 0.0004

s = 0.0480

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0004) – 1
= 15.53%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0480) – 1
= 21.17%

September 13, 2022 calculations

Top border of price channel:

Exp(Y788)
= Exp(a + b × X788 + 2 × s)
= Exp(a + b × 1,142 + 2 × s)
= Exp(4.2587 + 0.0004 × 1,142 + 2 × 0.0480)
= Exp(4.8065)
= $122.30

Bottom border of price channel:

Exp(Y788)
= Exp(a + b × X788 – 2 × s)
= Exp(a + b × 1,142 – 2 × s)
= Exp(4.2587 + 0.0004 × 1,142 – 2 × 0.0480)
= Exp(4.6145)
= $100.94

July 26, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(4.2587 + 0.0004 × 1,824 + 2 × 0.0480)
= Exp(5.0763)
= $160.18

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(4.2587 + 0.0004 × 1,824 – 2 × 0.0480)
= Exp(4.8843)
= $132.20

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 15.53% per annum.
  • J price at the close of July 26, 2024 was inside the secondary price channel.