Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.However, the Zacks Growth Style Score (part of the Zacks ...

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying the right ones can be challenging due to associated risks and volatility [1] Group 1: Company Overview - Jacobs Solutions is currently recommended as a growth stock by the Zacks Growth Style Score system, which evaluates a company's growth prospects beyond traditional metrics [2] - The company holds a top Zacks Rank, indicating strong potential for performance [2] Group 2: Earnings Growth - Historical EPS growth for Jacobs Solutions is 0.2%, but projected EPS growth for this year is 16.5%, significantly higher than the industry average of 10.6% [5] Group 3: Asset Utilization - Jacobs Solutions has an asset utilization ratio (sales-to-total-assets ratio) of 1.09, outperforming the industry average of 0.85, indicating efficient asset use to generate sales [6] Group 4: Sales Growth - The company's sales are expected to grow by 9.4% this year, compared to the industry average of 4.2%, showcasing strong sales growth potential [7] Group 5: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Jacobs Solutions, with the Zacks Consensus Estimate for the current year increasing by 0.9% over the past month [8] Group 6: Investment Positioning - Jacobs Solutions has achieved a Zacks Rank of 2 and a Growth Score of A, positioning it well for potential outperformance in the growth stock category [10]

Core Insights - Jacobs Solutions Inc. reported mixed Q3 fiscal 2025 results, with adjusted earnings exceeding estimates while revenues fell short, although both metrics showed year-over-year growth [1][4][10] Financial Performance - Adjusted EPS was $1.62, beating the Zacks Consensus Estimate of $1.56 by 3.9%, and up from $1.30 in the same quarter last year [4][10] - Revenues totaled $3.03 billion, missing the consensus mark of $3.07 billion by 1.1%, but grew 5.2% year over year [4][10] - Adjusted net revenues were $2.23 billion, reflecting a 7.2% year-over-year increase [4] - Adjusted operating profit increased 13.7% to $308.4 million, with an adjusted operating margin of 13.8%, up 80 basis points year over year [5] - Adjusted EBITDA was $314.3 million, up 13.5% year over year, with a margin of 14.1%, also up 80 basis points [5] Backlog and Demand - Fiscal Q3 backlog rose 14% year over year to $22.69 billion, indicating strong project wins and future revenue stability, with a book-to-bill ratio of 1.2x [5][10] - The Infrastructure & Advanced Facilities segment reported revenues of $2.7 billion, a 4% increase year over year, with adjusted net revenues of $1.9 billion, up 5.7% [6] - The Critical Infrastructure business saw gross revenues rise 6.1% year over year to $1.14 billion, while Life Sciences and Advanced Manufacturing grew 7.2% to $754 million [8] Segment Performance - PA Consulting segment generated $332.7 million in revenues, a 15.4% increase from the previous year [9] - The Water & Environmental business experienced a decline in gross revenues by 1.5% year over year to $803 million [8] Balance Sheet and Cash Flow - Cash and cash equivalents at the end of Q3 were $1.29 billion, up from $1.14 billion at the end of fiscal 2024 [12] - Long-term debt increased to $2.51 billion from $1.35 billion at the end of fiscal 2024 [12] - Net cash provided by operating activities was $303.6 million in the first nine months of fiscal 2025, down from $858.1 million in the same period last year [13] Guidance - Adjusted net revenues are expected to grow approximately 5.5% year over year, with an adjusted EBITDA margin projected at about 13.9% [14] - Adjusted EPS guidance has been raised to between $6.00 and $6.10, up from the previous range of $5.85-$6.20 [15]

Core Viewpoint - Jacobs Solutions Inc. reported mixed results for the second quarter of fiscal 2025, with adjusted earnings exceeding estimates while revenues fell short, although both metrics showed year-over-year growth [1][3]. Financial Performance - Adjusted earnings per share (EPS) were $1.43, surpassing the Zacks Consensus Estimate of $1.41 by 1.4%, and up from $1.17 in the same quarter last year [3]. - Revenues totaled $2.91 billion, missing the consensus estimate of $3.02 billion by 3.6%, but reflecting a year-over-year increase of 2.2% [3]. - Adjusted net revenues were $2.14 billion, up 3.1% year over year [3]. - Adjusted operating profit increased by 2.4% to $270.6 million, with an operating margin remaining flat at 12.7% [3]. - Adjusted EBITDA rose 8.1% year over year to $286.6 million, with a margin of 13.4%, up 60 basis points from the previous year [3]. Backlog and Demand - The fiscal second-quarter backlog increased by 20% year over year to $22.16 billion, indicating strong project wins and robust demand [4]. - The book-to-bill ratio was 1.3x over the trailing 12 months, suggesting future revenue stability [4]. Segment Performance - Infrastructure & Advanced Facilities segment revenues were $2.6 billion, a 2% increase from $2.55 billion year over year, with adjusted net revenues of $1.83 billion, up 2.8% [5]. - The Critical Infrastructure business saw gross revenues rise 2.2% year over year to $1.11 billion, while Life Sciences and Advanced Manufacturing grew by 5.8% to $728 million [7]. - The PA Consulting segment generated $307.7 million in revenues, up from $294 million year over year, with an adjusted operating margin improving to 21.9% [8]. Balance Sheet and Cash Flow - At the end of the fiscal second quarter, cash and cash equivalents were $1.2 billion, an increase from $1.14 billion at the end of fiscal 2024 [9]. - Long-term debt rose to $2.63 billion from $1.35 billion at the end of fiscal 2024 [9]. - Net cash provided by operating activities was $11.03 million in the first half of fiscal 2025, down from $375.5 million in the same period last year [10]. Guidance - Jacobs retained its guidance for adjusted net revenues to grow mid-to-high single digits year over year and adjusted EBITDA margins to be in the range of 13.8-14% [11]. - Adjusted EPS expectations remain between $5.85 and $6.20, with an expectation of over 100% free cash flow conversion from net income [12].