Jacobs (JEC) Secures New Contract from Shell Offshore


Shutterstock photo

Renowned construction company Jacobs Engineering Group Inc. JEC continues to strengthen its portfolio with a string of contract wins. In keeping with this strategy, the company recently secured a contract from Shell Offshore Inc. for its Vito host project in the Gulf of Mexico.

The stock looks promising at the moment as it recorded an average return of 19.66% over the last 30 days. The average Zacks-categorized Engineering/Research & Development Services industry returned 16.16% over the same period.

Contract Details

Shell Offshore Inc. is a subsidiary of Royal Dutch Shell (RDS.A). Under the Vito project contract, Jacobs would provide its premium design package, front end and detailed engineering services for the topsides of the Vito host platform. The company's comprehensive understanding of the deep-water production systems would enable it to offer a new less expensive design for the project.

We expect the deal to further strengthen Jacobs' long-standing bond with Royal Dutch Shell.

Our Take

Jacobs' stock was valued at $61.72 per share as of Nov 29, 2016. The stock has gained 4% since the fiscal fourth-quarter 2016 earnings release on Nov 22, 2016. The company's quarterly earnings were in line with the Zacks Consensus Estimate.

JACOBS ENGIN GR Price

JACOBS ENGIN GR Price | JACOBS ENGIN GR Quote

Jacobs currently carries a Zacks Rank #3 (Hold). The company plans to improve its performance by streamlining operations, reducing costs and managing working capital more efficiently. In addition, Jacobs intends to reward its shareholders with lucrative share buyback offers. However, headwinds like unfavorable commodity and energy prices as well as a stronger U.S. dollar might raise concerns.

Stocks to Consider

Some better-ranked stocks in the industry are Willdan Group, Inc. WLDN , MasTec, Inc. MTZ and Comfort Systems USA, Inc. FIX .

Willdan Group, Inc. delivered an average positive earnings surprise of 18.72% for the trailing four quarter. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

MasTec, Inc. currently carries a Zacks Rank #2 (Buy). It posted an average positive earnings surprise of 61.27% for the trailing four quarters.

Comfort Systems USA, Inc. currently carries a Zacks Rank #2. The company delivered an average positive earnings surprise of 15.83%.

Zacks' Top Investment Ideas for Long-Term Profit

How would you like to see our best recommendations to help you find today's most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

COMFORT SYSTEMS (FIX): Free Stock Analysis Report

JACOBS ENGIN GR (JEC): Free Stock Analysis Report

MASTEC INC (MTZ): Free Stock Analysis Report

WILLDAN GROUP (WLDN): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Business , Stocks
Referenced Symbols: FIX , JEC , MTZ , WLDN


More from Zacks.com

Subscribe






Zacks.com
Contributor:

Zacks.com

Equity Research
Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com