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Valued at a market cap of $17.1 billion, Jacobs Solutions Inc. (J) is a global leader in delivering consulting, technical, engineering, and project delivery services across diverse industries. It serves government and private sectors worldwide through innovative solutions in cybersecurity, data analytics, design, and environmental remediation.
Shares of the Dallas, Texas-based company have outperformed the broader market over the past 52 weeks. J stock has surged nearly 33% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 31%. In 2024, shares of J are up around 27%, compared to SPX's 25.2% gain on a YTD basis.
However, Jacobs Solutions has lagged behind the Industrial Select Sector SPDR Fund's (XLI) 34.5% return over the past 52 weeks. But, the stock has slightly outpaced XLI's 25.1% YTD gain.
Shares of Jacobs Solutions dropped 4.9% on Nov. 19 due to market reactions to its mixed Q4 fiscal 2024 results, where revenue of around $3 billion missed consensus estimates despite a 4.4% year-over-year increase. Investor sentiment was also impacted by concerns over temporary headwinds in the life sciences and advanced manufacturing sectors, particularly due to an EV battery manufacturer's bankruptcy. Additionally, while adjusted EPS of $1.37 slightly beat estimates, the market remained cautious about the separation of Critical Mission Solutions and parts of Divergent Solutions, and its long-term implications.
For the current fiscal year, ending in September 2025, analysts expect J's EPS to grow nearly 15% year-over-year to $6.07. The company's earnings surprise history is promising. It beat the consensus estimates in the last four quarters.
Among the 14 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings, two “Moderate Buys,” and five “Holds.”
This configuration is slightly less bullish than three months ago, with eight “Strong Buy” ratings on the stock.
On Nov. 21, RBC Capital analyst Sabahat Khan lowered Jacobs Solutions' price target to $152 while maintaining an “Outperform” rating, noting that Q4 results and FY25 guidance were in line with expectations, with investor focus shifting to the February investor day for medium-term strategy updates.
As of writing, J is trading below the mean price target of $158.20. The Street-high price target of $180, implies a potential upside of 31% from the current price.
