Is Jacobs Solutions Stock Underperforming the Dow?

Jacobs Solutions Inc. (J), with a market cap of $15.1 billion, engages in the infrastructure and advanced facilities, and consulting businesses in the United States and globally. Founded in 1947, the Dallas, Texas-based company offers consulting, planning, architecture, design, engineering, and infrastructure delivery services.

Companies worth $10 billion or more are generally described as "large-cap stocks," Jacobs Solutions fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the construction industry.

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However, J has slipped 17.9% from its 52-week high of $150.54 achieved on Nov. 13. Furthermore, J stock declined 9.1% over the past three months, falling behind the broader Dow Jones Industrial Average’s ($DOWI) 1.6% fall during the same time frame.

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Zooming out, J has plunged 3.7% over the past six months and 1.2% over the past 52 weeks, lagging behind $DOWI’s 1.6% rise over the past six months and 8.3% returns over the past year.

To confirm the stock’s persistent downtrend, J has mostly traded below its 200-day moving average since February-end. Additionally, the stock has largely remained below its 50-day moving average since early February, reinforcing bearish sentiment.

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J stock declined 3.5% after the company announced its Q1 earnings on Feb. 4. The company reported a 4.4% growth in its gross revenue, which amounted to $2.9 billion, mainly driven by a 4.8% growth in its infrastructure & Advanced Facilities gross revenue. Additionally, the company’s EPS amounted to $1.33, surpassing the Wall Street estimates by 3.1%.

Its rival, EMCOR Group, Inc. (EME), has lagged behind in the short term, with its shares declining 5.3% over the past six months. However, the stock has trailed 18.8% over the past 52 weeks.

Among the 15 analysts covering the J stock, the consensus rating is a “Moderate Buy.” The mean price target of $154.25 suggests a 24.8% upside potential from current price levels.