Jacobs Solutions Inc. J secured an extension as the program management consultant for the DC Streetcar project following its outstanding performance. Managed by the District Department of Transportation (DDOT), the project aims to reduce congestion and offer more sustainable transit options for Washington, D.C. residents and tourists. The electric streetcar fleet, which started five years ago, connects communities and provides an eco-friendly transportation option.
Per the extension, the company will continue as the program management consultant for the 2.4-mile DC Streetcar route, which covers a diverse corridor of schools, restaurants, housing, historical sites and other community locations. It will support DDOT with technical assistance, general engineering and stakeholder engagement. The two-year extension broadens Jacobs' responsibilities to include overseeing operations and maintenance, providing on-site engineering services and managing safety, security and external communications.
Jacobs significantly contributed to enhancing mobility and connectivity in Washington, D.C. In the past five years, the company has supported the DC Streetcar development, boosting employment opportunities and attracting new businesses along the corridor.
J's proven track record in Program Management includes handling complex and high-profile infrastructure projects. It has been involved in transforming more than 1,000 acres for Expo 2020 Dubai, contributing to the Thames Tideway Tunnel project to improve the River Thames in London and redeveloping Denver's National Western Center into a sustainable venue for agriculture, education and entertainment. With extensive global experience, the company continues to be a trusted advisor, ensuring the continued success of the DC Streetcar project.
Price Performance
The company’s shares have moved up 6.9% in the past three months compared with the Zacks Technology Services industry’s 4.3% growth. The company is benefiting from a robust upside in the People and Places Solutions (P&PS) business and backlog growth, reflecting its broad-based strength in global infrastructure and sustainability investment. It focuses on simplifying the business model, optimizing costs, expanding margins and accelerating profitable growth across its business lines.
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This solid project execution is bolstered by ongoing backlog growth. During third-quarter fiscal 2024, Jacobs achieved notable backlog growth and consolidated margin expansion. At the end of the fiscal third quarter, the company reported a backlog of $30.6 billion, up 6% year over year. The upside reflects a sustained strong demand for its consulting services. The P&PS segment had a backlog of $19.3 billion in the fiscal third quarter, up from $17.5 billion in the year-ago quarter. The Critical Mission Solutions segment reported a backlog of $8.45 billion, up from $8.1 billion a year ago.
The company continued to shift toward higher margin science-based consulting and advisory services, led by P&PS and the partnership with PA Consulting. This shift, coupled with rising demand in critical infrastructure sectors such as water, environmental and advanced facilities, is expected to drive significant growth.
Zacks Rank & Key Picks
Currently, Jacobs carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks in the same space:
AppLovin Corporation APP currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
APP’s shares have surged 117.3% year to date (YTD). APP delivered a trailing four-quarter earnings surprise of 21.1%, on average. The Zacks Consensus Estimate for APP’s 2024 sales and EPS indicates growth of 35.1% and 255.1%, respectively, from the prior-year levels.
Duolingo, Inc. DUOL currently flaunts a Zacks Rank of 1. DUOL delivered a trailing four-quarter earnings surprise of 92.1%, on average. Shares of the company have lost 10.2% year to date.
The Zacks Consensus Estimate for DUOL’s 2024 sales and EPS indicates growth of 38.6% and 434.3%, respectively, from the prior-year levels.
SPX Technologies, Inc. SPXC presently carries a Zacks Rank of 2 (Buy). SPXC has a trailing four-quarter earnings surprise of 10.6%, on average. Shares of the company have gained 50.7% year to date.
The Zacks Consensus Estimate for SPXC’s 2024 sales and EPS indicates an increase of 14.8% and 28.5%, respectively, from the year-ago period’s reported levels.
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AppLovin Corporation (APP) : Free Stock Analysis Report
SPX Technologies, Inc. (SPXC) : Free Stock Analysis Report
Jacobs Solutions Inc. (J) : Free Stock Analysis Report
Duolingo, Inc. (DUOL) : Free Stock Analysis Report
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