Jacobs Solutions Inc. J has been awarded the Project Management Resources (PMR) framework contract with EDF Nuclear Generation to support its eight nuclear power stations. These nuclear power stations contribute about 16% of the U.K.'s electricity output.
Per the contract, Jacobs will oversee operations at four Advanced Gas-cooled Reactor (AGR) stations. The company will manage the transition from generation to defueling at three other AGR stations and handle the operation and life extension program for the Sizewell B pressurized water reactor. The new two-year contract, starting on Jan 1, 2024, is valued at more than $53 million, according to EDF's estimates.
The company's commitment supports the U.K.'s nuclear power fleet, providing sustainable, emission-free energy to communities. Jacobs will assist EDF in maximizing generation from national assets, ensuring energy security and aiding the goal of achieving net-zero carbon by 2050.
Strong Backlog
Jacobs has been witnessing a surge in demand for its consulting services across diverse sectors, encompassing infrastructure, water management, environmental solutions, space exploration, broadband, cybersecurity and life sciences.
A testament to this success is the robust backlog level, which stood at $28.9 billion at the end of the third quarter of fiscal 2023. This marks a 2.9% increase from the previous year’s levels. Within this backlog, the Critical Mission Solutions segment contributed $8.097 billion. People and Places Solutions segment contributed $17.5 billion during the third quarter of fiscal 2023.
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In the past year, shares of Jacobs have gained 14% compared with the industry’s 30.5% rise. Although the company has underperformed the industry, infrastructure modernization, the shift toward sustainable energy, national security imperatives and the potential for a super-cycle in global supply-chain investments are expected to boost its performance in the upcoming periods.
Zacks Rank & Key Picks
Jacobs currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the Zacks Business Services sector are TriNet Group, Inc. TNET, DocuSign, Inc. DOCU and SPX Technologies, Inc. SPXC.
TriNet currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. TNET delivered a four-quarter average earnings surprise of 77.4%. The company’s shares have risen 59.5% in the past year.
The Zacks Consensus Estimate for TNET’s 2023 sales indicates a decline of 2.7% but earnings per share (EPS) indicates a rise of 4%, respectively, from the prior-year reported figures.
DocuSign currently flaunts a Zacks Rank of #2 (Buy). DOCU has a four-quarter average earnings surprise of 27.1%. The stock has risen 3.2% in the past year.
The Zacks Consensus Estimate for DOCU’s 2024 sales and EPS indicates growth of 8.6% and 29.1%, respectively, from the prior-year reported figures.
SPX Technologies currently sports a Zacks Rank of #2. SPXC has a trailing four-quarter earnings surprise of 33.5% on average. Shares of the company have increased 20.3% in the past year.
The Zacks Consensus Estimate for SPXC’s fiscal 2023 sales and EPS indicates a rise of 20% and 38.7%, respectively, from the year-ago reported levels.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>TriNet Group, Inc. (TNET) : Free Stock Analysis Report
SPX Technologies, Inc. (SPXC) : Free Stock Analysis Report
DocuSign (DOCU) : Free Stock Analysis Report
Jacobs Solutions Inc. (J) : Free Stock Analysis Report
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