Jacobs Engineering Group Inc.
Thesis
Jacobs Engineering is well-positioned to benefit from significant capital spending in the chemical industry, driven by lower natural gas prices and structural shifts in production. The company is considered one of the best-run firms in the engineering and construction sector, making it a favorable investment for the long term.
Did it work?
The long thesis on Jacobs Engineering played out decisively: the stock returned +103.2%, more than doubling. While the pitch cited a vague 'long term' horizon without a specific target, a return of this magnitude in the stated direction strongly confirms the thesis that Jacobs was well-positioned to benefit from chemical industry capital spending and was a best-in-class operator. The unknown elapsed time is the only caveat, but it does not undermine a doubling of the share price.