Jacobs Solutions Inc. 's J stock is currently trading at a discount compared with the Zacks Technology Services industry peers. The company’s forward 12-month price-to-earnings (P/E) ratio is 18.97X, which is down from the industry average of 24.73X and the broader Business Services sector’s 22.69X.

Jacobs is also trading currently at a discount compared with similar players like EMCOR Group, Inc. EME, AECOM ACM and Sterling Infrastructure, Inc. STRL. EMCOR, AECOM and Sterling Infrastructure are trading with forward 12-month P/E multiples of 19.75X, 20X and 21.87X, respectively.

Jacobs Trading at a Discount to the Industry Average

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In the past month, shares of Jacobs have gained 5% compared with the industry’s and the S&P 500’s increase of 15.7% and 6.3%, respectively. The company has underperformed the industry due to rising direct costs and unfavorable currency movements. However, strong end-market demand, robust project wins and a healthy backlog continue to support growth prospects.

Jacobs Past Month’s Price Performance

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Let us review the key factors supporting the company’s discounted valuation and growth potential.

Robust Backlog Supports Revenue Growth Prospects

The company’s solid project backlog and steady contract wins highlight its ability to maintain consistent revenue growth. At the end of second-quarter fiscal 2025, the backlog reached $22.16 billion, up 20% year over year. The Infrastructure & Advanced Facilities segment had a backlog of $21.77 billion compared with $18.13 billion last year. PA Consulting’s backlog grew to $392 million from $344 million, supported by growth in key markets and increased public sector spending.

Ongoing demand in important markets supports steady revenue growth in the near term. For the fiscal third quarter, the company forecasts a 5% to 7% year-over-year increase in net revenues, with most second-half revenues expected to come from its current backlog.

Steady Progress in Key Markets Backed by Strong Demand

The company continues to make progress in several core markets, supported by ongoing demand, project wins and client investments. Jacobs has seen steady growth in Water and Environmental services, driven by government infrastructure projects and climate resilience efforts. In Life Sciences and Advanced Manufacturing, the company recorded double-digit revenue growth in the second quarter of fiscal 2025, supported by contracts like the engineering and management work for Merck’s $1 billion oncology facility.

In Critical Infrastructure, Jacobs is adapting to changing client priorities linked to increased global travel and transportation upgrades. The company considers global aviation investment a key driver for the Transportation segment, where it leverages consulting and program management expertise.