Jacobs Engineering Group Inc. recently inked a share repurchase agreement to transfer the operations of its France-based subsidiary to NOX SARL. The deal was made in cash but the financial details were not disclosed.

Jacobs’ French business complements that of NOX and hence, the strategic move reflects the company’s focus on achieving continuous growth in its core segments. Also, Jacobs believes that the initiative would significantly enhance its operations in its targeted geographies and markets.  

Moving Forward

Jacobs is one of the most popular technical service providers in the global forum. It offers professional, technical and construction services to diversified public, industrial and commercial clients. We believe that the transfer of ownership of its French unit to NOX would further streamline Jacobs’ operations.

Share Price and Zacks Rank

Share price of the company stood at $52.70 per share as of Jul 15, 2016. We expect the aforesaid announcement to result in stock price movement in the near term.

Jacobs currently carries a Zacks Rank #3 (Hold). The company remains on track to boost its financials via new contracts, improved backlogs, greater operational efficiency and increased innovations. However, headwinds like a strong U.S. dollar, intense competition and dismal pricing environment in the global mining and energy market raise concerns.

Stocks to Consider

Some better-ranked stocks in the industry include Willdan Group, Inc. (WLDN Quick QuoteWLDN - Free Report) , KBR, Inc. (KBR Quick QuoteKBR - Free Report) and ABM Industries Incorporated (ABM Quick QuoteABM - Free Report) . All the three companies currently hold a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>