Jacobs Solutions Inc. J clinched a significant $132 million (£108 million) contract to provide crucial research and technology services to the UK's naval nuclear propulsion program. The 14-year agreement, extending until 2032, focuses on delivering through-life technical support for the Rolls-Royce PWR2 reactors, vital for the Royal Navy's submarines.
The contract gains additional prominence as the UK progresses with the construction of four new Dreadnought Class ballistic missile submarines and develops a novel submarine variant under the AUKUS security alliance with the United States and Australia. Jacobs has been integral to the Royal Navy's nuclear submarines since their inception in 1958, showcasing the company's long-standing commitment to naval defense.
Underlining its diverse expertise, Jacobs offers comprehensive laboratory and analytical resources, excelling in materials science, high-integrity engineering, physics, and chemistry. This latest contract supplements Jacobs' existing role, where it is already responsible for delivering nuclear safety and technical advice to the Royal Navy's submarine service under a separate $230 million (£185 million), 10-year contract awarded last year.
Solid Project Execution: A Boon for Backlog
Jacob's ability to execute projects efficiently has played a pivotal role in driving the company's performance in recent quarters. The continuous success in securing new contracts stands as evidence of this proficiency. As of the end of fiscal 2023, the company disclosed a backlog of $29.1 billion, marking a 4.5% increase compared to the previous year. This growth underscores the sustained strong demand for Jacobs' consulting services.
J’s shares have gained 9.4% in the past six months compared with the Zacks Technology Services industry’s 8.9% growth.
Earnings estimates for fiscal 2024 remained stable at $8.05 per share in the past 30 days. This suggests 11.8% year-over-year growth on 4.8% higher revenues.
Zacks Rank & Stocks to Consider
Currently, Jacobs carries a Zacks Rank #4 (Sell).
Here are some better-ranked stocks from the Zacks Business Services sector.
DocuSign, Inc. DOCU: The Zacks Consensus Estimate for DocuSign’s fiscal 2024 revenues indicates 9.2% growth from the year-ago figure, while earnings are expected to grow 41.4%. The company beat the consensus estimate in all the past four quarters, the average surprise being 24.7%.
DOCU currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Broadridge Financial Solutions BR: The Zacks Consensus Estimate for Broadridge’s fiscal 2024 revenues indicates 7.7% growth from the year-ago figure, while earnings are expected to grow 10.1%. The company beat the consensus estimate in three of the past four quarters and matched on one instance, the average surprise being 5.4%.
BR carries a Zacks Rank of 2 (Buy) at present.
ABM Industries ABM: The Zacks Consensus Estimate for ABM’s fiscal 2024 revenues indicates a slight increase from the year-ago figure, while earnings are expected to decline 5.1%. The company beat the consensus estimate in three of the past four quarters and missed on one occasion, the average surprise being 1.4%.
ABM currently carries a Zacks Rank of 2.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.0% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>Broadridge Financial Solutions, Inc. (BR) : Free Stock Analysis Report
ABM Industries Incorporated (ABM) : Free Stock Analysis Report
DocuSign (DOCU) : Free Stock Analysis Report
Jacobs Solutions Inc. (J) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
