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Valued at a market cap of $15.2 billion, Jacobs Solutions Inc. (J) is a leading Texas-based provider of technical, professional, and construction services. It is known for delivering innovative, sustainable solutions to complex challenges, often working on large-scale capital projects and long-term infrastructure programs.
Shares of this engineering services company have surpassed the broader market over the past 52 weeks. Jacobs has gained 10.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 10.1%. However, on a YTD basis, the stock is down 5.1%, compared to $SPX’s marginal fall.
Narrowing the focus, J has lagged behind the Industrial Select Sector SPDR Fund’s (XLI) 12.8% return over the past 52 weeks and 7.3% gain on a YTD basis.
Jacobs Solutions reported mixed second-quarter results on May 6, with adjusted EPS of $1.43 beating estimates by $0.05, but revenue falling short at $2.91 billion, about $90 million below expectations. Despite strong demand in life sciences, transportation, and energy, investor sentiment turned negative, pushing the stock down 6% due to the revenue miss and a mark-to-market loss on its Amentum investment.
For the current fiscal year, ending in September 2025, analysts expect Jacobs’ EPS to grow 13.8% year-over-year to $6.01. The company’s earnings surprise history is solid as it topped the Wall Street estimates in each of the last four quarters.
Among the 15 analysts covering the stock, the consensus rating is a “Moderate Buy,” which is based on seven “Strong Buys,” two “Moderate Buys,” and six “Hold” ratings.
On May 12, Truist analyst Jamie Cook raised the price target on Jacobs Solutions from $130 to $141 while maintaining a “Hold” rating. The update follows the company’s better-than-expected Q2 earnings, driven by strong gross margins and disciplined general and administrative (G&A) cost management.
Jacobs’ mean price target of $144.04 implies a premium of 13.6% from the current market prices. The Street-high price target of $160 suggests an upside potential of 26.2%.
