Jacobs Engineering Group Inc.JEC recently secured an engineering, procurement and construction management (EPCM) contract from Evonik, for an undisclosed amount.
Jacobs' shares yielded a return of nearly 4%, as against 0.7% loss incurred by the sector , in a year's time.
This Zacks Rank #3 (Hold) company is poised to grow on the back of diligent business contracts and strategic restructuring moves. Notably, Jacobs signed an agreement (on Aug 7, 2017) to acquire CH2M HILL Companies Ltd., which is in sync with its efforts to become a $15-billion global solutions provider over the long run.
Inside the Headlines
Per the aforementioned contract, Jacobs will provide its premium EPCM services for Evonik's new precipitated silica production facility located near Charleston, SC. This plant is expected to suffice the global demand for more energy efficient and safer tires, with superior wet grip properties. Construction of the silica facility is expected to close in 2018.
Jacobs has provided similar services to a number of clients in the semi-conductor, pulp and paper, specialty chemicals, and durable goods market. The company will use its experience and expertise to accomplish the Evonik project efficiently.
Jacobs quotes competitive prices for its contracts and ensures that the number of contract receipts increases over time. In the last few months, the company has won a number of contracts from renowned institutions and public-sector agencies like the Chevron Corporation CVX , National Aeronautics and Space Administration, and the U.S. Army. Notably, higher transportation spending of the government authorities of Australia, the U.K. and the United States has largely increased Jacobs' contract winning opportunities in the near term.
Stocks to Consider
Better-ranked stocks in the sector are listed below:
TopBuild Corp. BLD has an average positive earnings surprise of 10.42% for the last four quarters and currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Beazer Homes USA, Inc. BZH holds a Zacks Rank #2 and has an outstanding average positive earnings surprise of 103.47% for the trailing four quarters.
Energy Focus, Inc. EFOI , which also carries a Zacks Rank #2, generated an average positive earnings surprise of 6.60% during the same time frame.
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