Jacobs Engineering Group Inc.JEC recently clinched a multiple-year contract from Olin Corp.OLN which underpins the company's organic growth trajectory. Financial details of the deal have not been disclosed yet.
Olin Corporation is a renowned American manufacturer of chlorine, ammunition and sodium hydroxide. As per the lately received contract, Jacobs would be providing its premium engineering, procurement, and construction management ('EPCM') services to Olin Corporation's chemical plants located in the Gulf coast of the United States.
Jacobs is one of the leading providers of technical services and construction solutions for diversified public, industrial and commercial clients worldwide. The company is well known for its non-imitable EPCM services. Jacobs provides its EPCM services for numerous facilities in Texas, Freeport, Plaquemine, St. Gabriel, Louisiana, McIntosh and Alabama.
Thus, the company's competent EPCM services would likely make Olin Corporation's ongoing projects fit-for-purpose and hence add value to the same.
Zacks Rank and Share Price
JACOBS ENGIN GR Price
Jacobs' stock rallied roughly 2.1% since Oct 4 2016. We perceive that the aforesaid contract news might be a factor behind the upside.
Jacobs currently carries a Zacks Rank #3 (Hold). The company is constantly striving to boost its financials through new contracts, improved backlog, greater operational efficiency and increased innovation. However, a strong U.S. dollar, intense competition and a dismal pricing environment in the global mining and energy markets raise concern.
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