Back to top

Analyst Blog

Construction and engineering services provider, Jacobs Engineering Group Inc. (JEC - Analyst Report), failed to cheer markets despite the acquisitions made by its joint venture (JV) with the South African company, Matasis Investment Holdings (Proprietary) Limited. The JV – Jacobs Matasis (Proprietary) Limited – acquired Cape Town, SA-based, Ilitha Projects and Ilitha Staffing. However, no visible movement was noticed in the stock price subsequent to the announcement.

Ilitha Projects engages in providing project management and engineering, procurement and construction management services to its clients in the nuclear, oil and gas, marine mining and metals, chemicals and power markets. Ilitha Staffing, on the other hand, deals with providing technical contract staff sourcing and management services to its clients.

The acquisition is a strategic fit for the JV as it facilitates the company’s growth in South Africa and more specifically in its targeted Sub-Saharan African market.

Additionally, on the same day, Jacobs won a contract from England’s Environment Agency. The value of the Water and Environmental Management framework contract has not been disclosed. The four-year contract has an extendable option of two years.

Per the contract, Jacobs will be responsible for mapping and data management, strategic flood modeling, optioneering, economic appraisal and design.

Jacobs has been working with the Environment Agency for over 10 years, in the Agency’s flood and coastal risk management program. In Sep 2009, the company received a two-year extension on the National Engineering and Environmental Consultancy Agreement framework from the Agency.

Jacobs currently carries a Zacks Rank #2 (Buy). Other stocks worth a look in the industry are Michael Baker Corp. , Foster Wheeler AG (FWLT - Analyst Report) and KBR, Inc. (KBR). While Michael Baker carries a Zacks Rank #1 (Strong Buy), Foster Wheeler and KBR carry a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%