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Dallas, Texas-based Jacobs Solutions Inc. (J) is a consulting firm with a market cap of $16 billion. It delivers technical, design, and strategic advisory services for infrastructure, advanced facilities, and water to industrial and commercial clients.
This industrial company has underperformed the broader market over the past 52 weeks. Shares of J have gained 5.9% over this time frame, while the broader S&P 500 Index ($SPX) has soared 11.9%. However, on a YTD basis, the stock is up 3%, outpacing SPX’s marginal drop.
Narrowing the focus, J has also lagged behind the State Street Industrial Select Sector SPDR ETF (XLI), which surged 27.3% over the past 52 weeks and 12.9% on a YTD basis.
J posted stronger-than-expected Q1 earnings results on Feb. 3, and its shares soared 7.8% in the following trading session. The strong performance was driven by solid revenue growth in both the Infrastructure & Advanced Facilities (I&AF) and PA Consulting segments. The company’s total revenue increased 12.3% year-over-year to $3.3 billion, surpassing consensus estimates by 3.5%, while its adjusted EPS advanced 15% from the same period last year to $1.53, topping analyst expectations of $1.52.
For fiscal 2026, ending in September, analysts expect J’s EPS to grow 16.5% year over year to $7.13. The company’s earnings surprise history is promising. It topped the consensus estimates in each of the last four quarters.
Among the 16 analysts covering the stock, the consensus rating is a "Moderate Buy,” which is based on eight “Strong Buy,” two "Moderate Buy,” and six “Hold” ratings.
The configuration has remained fairly stable over the past three months.
On Feb. 4, The Goldman Sachs Group, Inc. (GS) analyst Adam Bubes maintained a "Buy" rating on J and raised its price target to $163, indicating a 19.4% potential upside from the current levels.
The mean price target of $159.50 suggests a 16.9% potential upside from the current levels, while its Street-high price target of $180 suggests a 31.9% potential upside from the current levels.
