Core Insights - The current market presents a challenge for investors seeking safe places to allocate new capital, as the S&P 500 is experiencing record highs and significant rallies [1] - There are still opportunities to find relatively inexpensive stocks with above-average growth potential, particularly within the S&P 500 [2] Stock Selection - A screen identified 104 S&P 500 stocks with above-average growth and below-average price multiples, narrowing down to 86 after excluding energy and materials sectors [3][4] - T-Mobile is highlighted for its expected 19.4% earnings growth next year, trading at just over 18 times next year's earnings [4] - Royal Caribbean and Expedia are noted as strong travel stocks, with Expedia projected to grow earnings by 18% next year while trading at 13 times earnings, significantly cheaper than Booking Holdings [5] - Dollar Tree is identified as a consumer staples stock with a 15% growth rate, trading at less than 15 times next year's earnings, making it a favorable option [6] Financial Sector Opportunities - The financial sector is experiencing favorable conditions, with 34 of the 86 identified stocks coming from this sector [7] - Capital One Financial is projected to have nearly 14% earnings growth next year, trading at roughly 11 times next year's earnings [8] - American Express is expected to grow earnings by 12.6% next year, trading at less than 20 times earnings, which is cheaper than the overall S&P [9] - Citigroup is highlighted for its strong recovery under CEO Jane Fraser, with expected growth of 28% next year while trading at just 10.5 times earnings [10] - Keycorp, a regional bank, is expected to grow at 22% next year, trading at just under 11 times next year's earnings [11] Other Notable Stocks - Charles Schwab is recognized as a strong retail brokerage, while Apollo is noted for its leadership in private equity and private credit with projected earnings growth of 19% [12][13] - Insight, a biopharma company, stands out in the healthcare sector with expected earnings growth of 19% and trading at just under 12 times next year's earnings [14] - Caterpillar is noted for its strong performance, with an expected 18% earnings growth and trading at 22 times next year's earnings [15] - Dell Technologies is mentioned as a core player in AI infrastructure, while BXP, a real estate company, has rebounded after trimming its dividend to focus on growth projects [18][19] - Energy, a utility company, is highlighted for its growth potential due to infrastructure projects, including a $10 billion data center by Meta [20]

Company Overview - Jacobs Solutions Inc. has a market cap of $17.6 billion and is a global leader in professional services, including consulting, technical, scientific, and project delivery solutions [1] - The company operates across various sectors such as advanced manufacturing, cities and places, energy, environmental, life sciences, transportation, and water [1][2] Market Position - Jacobs Solutions is classified as a large-cap stock, emphasizing its size, influence, and dominance in the engineering and construction industry [2] - The company's diverse service offerings and focus on innovation position it well to tackle complex global challenges for its clients [2] Stock Performance - Jacobs shares have decreased by 1.8% from their 52-week high of $152.40, reached on August 13 [3] - Over the past three months, Jacobs stock has increased by 17.5%, outperforming the iShares U.S. Infrastructure ETF's (IFRA) rise of 8.9% [3] - Year-to-date, Jacobs shares have surged by 12%, and over the past 52 weeks, they have climbed by 23.4%, compared to IFRA's YTD gains of 12.5% and 12.9% returns over the last year [4] Financial Performance - On August 5, Jacobs reported third-quarter earnings, with revenue increasing by 5.1% year-over-year to $3 billion, exceeding analyst expectations of $2.2 billion [5] - The adjusted EPS rose by 24.6% to $1.62, surpassing Wall Street estimates [5] - The company also reported a 14% increase in its backlog, reaching a record high, indicating strong forward demand [5] Future Guidance - Following the positive earnings results, Jacobs management raised its fiscal 2025 guidance for the second time, now expecting adjusted net revenue growth of approximately 5.5% year-over-year and adjusted EPS in the range of $6.00 to $6.10 [6] - Key competitor TopBuild Corp. has shown resilience with a 34.5% return on a year-to-date basis, although it lagged behind Jacobs with a 5.2% gain over the past 52 weeks [6]

Group 1 - Jacobs Solutions Inc. is recognized as a beneficiary of the AI data center boom, with its data center exposure becoming a significant growth driver for the company [1] - The company has evolved from a one-man chemical engineering consulting business founded in 1947 to one of the largest engineering design firms globally, employing over 45,000 people [2] - Jacobs Solutions underwent a complicated merger breakup deal last year, which was successful and has positioned the company for further growth [1][2] Group 2 - While Jacobs Solutions is acknowledged as a potential investment, there are opinions suggesting that other AI stocks may offer greater upside potential and carry less downside risk [3]

Core Insights - Jacobs has been selected by the Puerto Rico Aqueduct and Sewer Authority (PRASA) to design the Mayagüez Ocean Outfall Replacement as part of PRASA's Capital Improvement Program aimed at modernizing Puerto Rico's water infrastructure [1][2] - The new pipeline, measuring 1.1 miles (1.8 kilometers), will replace a system that was severely damaged during Hurricane María, focusing on resilience and environmental impact reduction [2][3] - Jacobs emphasizes the importance of resilient infrastructure in protecting communities and ecosystems against climate-driven challenges, leveraging advanced analysis and construction strategies [3][4] Company Background - Jacobs has a significant presence in Puerto Rico, managing PRASA's capital program and engaging in critical infrastructure projects, including work at Luis Muñoz Marín International Airport [4] - The company has extensive global experience in resilient infrastructure, with projects ranging from the Port of San Francisco Waterfront Resilience Program to recovery efforts in the Philippines and U.S. Virgin Islands [4][5] - Jacobs operates with approximately $12 billion in annual revenue and a workforce of nearly 45,000, providing comprehensive services across various sectors including water, energy, and environmental solutions [5]

Core Viewpoint - The AI data center boom is creating unexpected winners in the engineering construction sector, exemplified by Jacob Solutions, which is experiencing significant growth due to its data center exposure [1]. Company Overview - Jacob Solutions has been involved in the data center space since 2007, initially focusing on conventional data centers and evolving into AI data centers, which are more complex and require specialized expertise [3][4]. - The company successfully navigated a complicated merger breakup last year and has continued to grow since then, with both Jacob Solutions and the new company Amentum performing well [5][6]. Data Center Business - Jacob Solutions is one of the few companies capable of building AI data centers, which are complex facilities that require a deep understanding of various systems [2][4]. - The company has developed a digital twin technology that allows for the simulation of data center operations, optimizing power and cooling requirements, which can lead to cost savings for customers [7][10]. Technological Integration - The digital twin technology integrates various components of the data center, such as compute load and utility requirements, allowing for better design and operational efficiency [8][10]. - Jacob Solutions collaborates with companies like Nvidia to create reference designs for large facilities, ensuring that the infrastructure can support rapid innovations in computing technology [8][11]. Power Management - The company assesses the power requirements for data centers and explores various power sources, including grid connections and alternative sources like nuclear and LNG, to ensure adequate supply [12][13]. - Jacob Solutions is adept at managing the complexities of power needs, including the use of batteries during peak loads, which is crucial for the operation of large data centers [13][14].

One thing I love about the AI data center boom is that it just keeps creating winners in unexpected places. Take Jacob Solutions. It's the engineering construction firm that went through a complicated merger breakup deal last year that was very successful but is now cleaning up thanks in large part to its data center exposure which has become a major growth driver for the company.Don't take it from me though. Let's check in with Bob Pad. He's the chairman and CEO of Jacob Solution more.Mr. . Bard, welcome b ...

Core Insights - The article compares Jacobs Solutions (J) and Symbotic Inc. (SYM) to determine which stock is more attractive to value investors [1] Group 1: Zacks Rank and Analyst Outlook - Jacobs Solutions has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while Symbotic Inc. has a Zacks Rank of 5 (Strong Sell), suggesting a less favorable analyst outlook [3] - The stronger estimate revision activity for Jacobs Solutions implies a more favorable analyst outlook compared to Symbotic Inc. [7] Group 2: Valuation Metrics - Jacobs Solutions has a forward P/E ratio of 24.17, significantly lower than Symbotic Inc.'s forward P/E of 197.63, indicating that J is more attractively priced [5] - The PEG ratio for Jacobs Solutions is 1.99, while Symbotic Inc. has a PEG ratio of 6.59, further suggesting that J is undervalued relative to its expected earnings growth [5] - Jacobs Solutions has a P/B ratio of 4.56 compared to Symbotic Inc.'s P/B of 63.09, reinforcing the notion that J is a better value investment [6] - Based on these valuation metrics, Jacobs Solutions holds a Value grade of B, while Symbotic Inc. has a Value grade of F, indicating a significant difference in perceived value [6]

Group 1: Company Overview - Heidrick & Struggles (HSII) is part of the Business Services group, which consists of 252 companies and currently ranks 4 within the Zacks Sector Rank [2] - The company has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook based on earnings estimates and revisions [3] Group 2: Performance Metrics - HSII's full-year earnings consensus estimate has increased by 4.4% over the past quarter, reflecting stronger analyst sentiment and an improving earnings outlook [4] - Year-to-date, HSII has gained approximately 14.7%, significantly outperforming the average gain of 1.1% for Business Services stocks [4] - In contrast, the Staffing Firms industry, which includes HSII, has seen an average loss of 25.5% this year, highlighting HSII's superior performance [6] Group 3: Comparison with Peers - Another outperforming stock in the Business Services sector is Jacobs Solutions (J), which has returned 9.4% year-to-date and also holds a Zacks Rank of 2 (Buy) [5] - Jacobs Solutions is categorized under the Technology Services industry, which has experienced a year-to-date increase of 20.7% [7]

Core Insights - Jacobs has been selected to support the design and management of the Marselis Tunnel, a key project in Denmark's Infrastructure Plan 2035, aimed at enhancing economic growth and urban spaces [1][2] - The project is expected to begin construction in 2028 and is currently in the planning and design stage, focusing on improving traffic flow between Aarhus Port and the E45 Østjyske Motorway [2][3] Company Overview - Jacobs is collaborating with Rambøll to deliver mechanical and electrical design and construction management services for the Marselis Tunnel, leveraging its global experience and project optimization strategies [2][3] - The company reported approximately $12 billion in annual revenue and employs nearly 45,000 people, providing end-to-end services across various sectors including transportation and urban development [4] Project Details - The Marselis Tunnel aims to reroute heavy traffic underground, creating opportunities for green spaces and safer streets, thereby enhancing the quality of urban life in Aarhus [2][3] - The project is significant as it represents a complex infrastructure task on one of the busiest access roads to Aarhus, requiring international experience due to the lack of similar projects in Denmark [3]

Core Insights - Jacobs Solutions Inc. has secured a significant contract with the New York State Department of Transportation to provide comprehensive design services for the lower Hudson Valley region, which includes multiple counties [1][10] - The project aims to modernize highways and bridges, enhancing vital infrastructure for commuters and positively impacting Jacobs' stock performance, with shares gaining 0.5% after hours [2][9] - Jacobs will address critical safety issues across nearly 6,000 miles of state highways and over 1,000 bridges, focusing on traffic management, congestion reduction, and smart transportation technologies [3][5] Project Details - The scope of work includes major upgrades to improve safety and connectivity, reflecting Jacobs' commitment to innovative and future-ready solutions [5][10] - Jacobs is also developing a Cyber and Engineering Academic Center in collaboration with the United States Military Academy at West Point, expected to be completed by the end of 2025 [4] Financial Performance - Jacobs' backlog reached a record high of $22.7 billion at the end of the third quarter of 2025, representing a 14.3% increase year-over-year, with a book-to-bill ratio of 1.2x [8] - The company has seen a 14% year-over-year growth in gross profit in backlog, indicating a strong standing for both the near and long term [8] Market Position - Jacobs' stock has outperformed the Zacks Technology Services industry, gaining 17.8% over the past three months compared to the industry's 13.1% growth [9][10] - The company is expected to benefit from ongoing trends in infrastructure modernization, energy transition, and national security, supported by government initiatives [9]