Sterling vs. Jacobs: Which Infrastructure Stock Is the Better Buy Now?

Ongoing investment across U.S. infrastructure and advanced facilities continues to support strong activity across transportation, water systems and mission-critical development such as data centers and semiconductor facilities. Within this backdrop, Sterling Infrastructure, Inc. STRL and Jacobs Solutions Inc. J are positioned as key players, benefiting from rising project complexity, long-term capital deployment cycles and increasing demand for integrated infrastructure solutions.

Sterling is gaining momentum through mission-critical and data center-driven work, supported by large and complex projects and growing customer demand. Jacobs continues to expand across advanced facilities, consulting and digital-led infrastructure programs, while leveraging technology and AI-driven capabilities to support delivery. Both companies emphasize backlog visibility, multiyear project flow and deeper client relationships, positioning each to capture sustained growth across infrastructure and advanced facility markets.

Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.

The Case for Sterling Stock

This Texas-based infrastructure services provider is benefiting from strong demand in mission-critical infrastructure. The company continues to see steady project activity across data centers, manufacturing facilities and e-commerce distribution networks. Growth in the E-Infrastructure Solutions business remains a key driver, supported by ongoing demand for digital and logistics infrastructure, while Transportation Solutions also continues to add stability through steady project activity and backlog visibility.

Sterling continues to benefit from rising demand for mission-critical construction projects. E-Infrastructure revenues increased 123% year over year in the fourth quarter, including 67% organic growth, driven mainly by data center construction activity. At year-end 2025, signed backlog reached $3 billion, up 78% year over year. Including $301 million of unsigned awards and more than $1 billion of future phase opportunities, total visibility now approaches $4.5 billion, supporting strong revenue visibility.

However, Building Solutions’ performance remained weak, with revenues declining 9% year over year in the fourth quarter due to softer residential demand and affordability pressures. This segment continues to face near-term headwinds even as other businesses deliver strong growth.

Looking ahead, Sterling’s Transportation Solutions segment is expected to remain a steady contributor, supported by a backlog of $1.1 billion, up 81% year over year, and continued bid activity tied to ongoing infrastructure funding programs. Combined with strong demand in data centers and mission-critical infrastructure, the company remains well positioned for sustained growth and margin expansion in the coming years.

The Case for Jacobs Stock

This Texas-based provider of professional, technical and construction services is benefiting from strong demand across infrastructure, advanced manufacturing and consulting markets. Jacobs continues to see broad-based growth driven by rising investments in data centers, semiconductor facilities, water systems and critical infrastructure. The company reported gross revenue growth of 12% year over year in the first quarter of fiscal 2026, reflecting steady execution across key end markets.

Strong backlog growth continues to support visibility across the business. At the first quarter of fiscal 2026-end, backlog reached a record $26.3 billion, up 21% year over year, while first-quarter book-to-bill surged to 2.0x, signaling strong demand momentum. The company also noted that gross profit embedded in backlog increased at a mid-teens rate, indicating that growth remains supported by higher-quality work rather than pass-through revenues.

However, margin progression faced some pressure due to mixed impacts and timing-related factors, along with variability tied to pass-through revenues on large and complex projects. These dynamics weighed on near-term margin performance despite solid revenue growth.

Looking ahead, Jacobs remains well positioned to benefit from sustained demand across infrastructure modernization, advanced manufacturing and digital consulting. The company continues to see strong pipeline growth and expanding opportunities across private and public markets, with operating leverage and project mix expected to support margin improvement over time.

Stock Performance & Valuation

As witnessed from the chart below, in the past six months, Sterling’s share price performance stands above Jacobs and the broader Construction sector.

Image Source: Zacks Investment Research

Considering valuation, over the past year, Sterling is trading above Jacobs on a forward 12-month price-to-earnings (P/E) ratio basis.

Image Source: Zacks Investment Research

Overall, from these technical indicators, it can be deduced that STRL stock offers an incremental growth trend with a premium valuation, while J stock offers a slow growth trend with a discounted valuation.

Comparing EPS Estimate Trends of STRL & J

The Zacks Consensus Estimate for Sterling’s 2026 EPS has increased to $13.69 from $11.82 in the past 30 days. This indicates expected earnings rise of 25.8% year over year on projected revenue growth of 24.6%.

STRL's EPS Trend

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Jacobs’ fiscal 2026 EPS has remained unchanged at $7.13 in the past 30 days. This indicates expected earnings rise of 16.5% year over year on projected revenue growth of 9.4%.

J's EPS Trend

Image Source: Zacks Investment Research

Should You Invest in STRL Stock or J Stock?

Sterling and Jacobs are both benefiting from strong infrastructure and advanced facility demand, supported by rising investments in data centers, manufacturing and critical infrastructure. Jacobs offers a diversified platform across consulting, advanced facilities and infrastructure markets, supported by strong backlog visibility and steady execution. On the other hand, Sterling is gaining momentum from its focused exposure to mission-critical and data center-driven projects, supported by strong backlog growth and higher project intensity.

Sterling’s growth profile appears stronger, supported by accelerating demand in E-Infrastructure and improving visibility from a rapidly expanding backlog. Jacobs continues to deliver stable growth, but near-term margin variability and relatively slower earnings momentum suggest a more balanced outlook.

With Sterling sporting a Zacks Rank #1 (Strong Buy) and Jacobs carrying a Zacks Rank #3 (Hold), the former appears to be the more compelling infrastructure stock at this time, supported by stronger growth momentum, improving earnings visibility and favorable estimate revisions. You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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