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Barchart
Barchart
Rashmi Kumari

Is Jacobs Solutions Stock Underperforming the Nasdaq?

Jacobs Solutions Inc. (J), headquartered in Dallas, Texas, is a global leader in providing professional services, including engineering, architecture, and consulting. With a market cap of $16.8 billion and known for delivering innovative solutions, Jacobs serves diverse industries such as infrastructure, technology, and environmental sustainability. 

Companies with a market cap of $10 billion or more are classified as “large-cap stocks,” Jacobs Solutions fits this category. Through its dedication to sustainability, technological advancement, and client success, the company continues to enhance its value proposition while driving progress and transforming challenges into opportunities for a smarter and more sustainable future.

Shares of this engineering consulting firm have fallen 10.1% from its 52-week high of $150.54, hit on Nov. 13. The stock is up 9.4% over the past three months, slightly underperforming the broader Nasdaq Composite’s ($NASX10% gain during the same time frame.

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Over the past six months, J stock rose by 15.2% and gained 26.8% over the past 52 weeks. In comparison, the NASX has climbed 11.7% over the last six months and rallied 31.8% over the past year.

Jacobs Solutions has traded below its 50-day moving average since December, signaling a bearish trend. However, it has remained above its 200-day moving average with a few fluctuations.

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Jacobs Solutions' shares declined 4.9% on Nov. 19 following Q4 earnings results. The company reported revenue of $3 billion, reflecting a 4.4% year-over-year increase, while adjusted EPS of $1.37 marked a strong 28% annual growth. Adjusted EBITDA reached $289 million, up 12.5% year-over-year. 

For fiscal 2025, Jacobs Solutions projects adjusted net revenue growth in the mid-to-high single digits compared to fiscal 2024, with an adjusted EBITDA margin forecasted to be between 13.8% and 14% and adjusted EPS expected to range between $5.80 and $6.20.

Highlighting the contrast in performance, J's competitor, TopBuild Corp. (BLD), has underperformed the stock. BLD has declined 17.2% over the past 52 weeks.

Given the stock's recent price performance, analysts are cautiously optimistic about J's prospects. The stock has a consensus rating of "Moderate Buy" from 14 analysts in coverage. The mean price target of $156.50 indicates a potential upside of 15.7% from its current level.

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