Jacobs Engineering Group Inc. has secured a position in a prominent South Australian transport project. The company is now part of a joint venture that has won a sub-contract from the Gateway South Consortium, for offering services in the Darlington Upgrade project in Adelaide, Australia. The new deal is likely to enhance Jacobs’ Buildings & Infrastructure business in the near term.
Gateway South Consortium is a joint venture between Laing O’Rourke and Fulton Hogan. This association has extended the sub-contract to another joint venture formed by Jacobs, SMEC Holdings Limited and KBR. Financial details of the sub-contract have not been disclosed.
As per the offer extended by Gateway South Consortium, Jacobs and its two venture partners will be offering construction and designing services in the Darlington Upgrade project. It is a vital transportation project in Australia, with a budget of roughly $400 million. This project intends to augment safety and reduce congestion and travel time in the region.
The sub-contract calls for the reconfiguration of the 3.3-kilometer road connecting the north of Tonsley Boulevard to Southern Expressway. Also, the companies will provide the design for a non-stop motorway beneath Mimosa Terrance, Flinders Driver, Sturt Road and Tonsley Boulevard. All legal formalities related to the prestigious project are expected to be accomplished by 2018.
Moving Forward
Share price of the company was $51.57 per share as of Sep 8, 2016. We expect the aforesaid announcement to boost investors’ confidence in the stock. Higher transportation investments incurred by the government authorities of Australia and U.K, the recently passed U.S. Highway Bill and strategic acquisition of J.L. Patterson & Associates in Dec 2015 are all expected to boost Jacobs’ Buildings & Infrastructure segment’s top line in the near term.
Zacks Rank
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, robust industry competition and dismal pricing environment in the global mining and energy market raise concerns.
Stocks to Consider
Better-ranked stocks within the industry include Willdan Group, Inc. (WLDN - Free Report) , Boise Cascade Company (BCC - Free Report) and Caesarstone Ltd. (CSTE - Free Report) . All the three companies presently hold a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Jacobs Engineering Group Inc. has secured a position in a prominent South Australian transport project. The company is now part of a joint venture that has won a sub-contract from the Gateway South Consortium, for offering services in the Darlington Upgrade project in Adelaide, Australia. The new deal is likely to enhance Jacobs’ Buildings & Infrastructure business in the near term.
Gateway South Consortium is a joint venture between Laing O’Rourke and Fulton Hogan. This association has extended the sub-contract to another joint venture formed by Jacobs, SMEC Holdings Limited and KBR. Financial details of the sub-contract have not been disclosed.
As per the offer extended by Gateway South Consortium, Jacobs and its two venture partners will be offering construction and designing services in the Darlington Upgrade project. It is a vital transportation project in Australia, with a budget of roughly $400 million. This project intends to augment safety and reduce congestion and travel time in the region.
The sub-contract calls for the reconfiguration of the 3.3-kilometer road connecting the north of Tonsley Boulevard to Southern Expressway. Also, the companies will provide the design for a non-stop motorway beneath Mimosa Terrance, Flinders Driver, Sturt Road and Tonsley Boulevard. All legal formalities related to the prestigious project are expected to be accomplished by 2018.
Moving Forward
Share price of the company was $51.57 per share as of Sep 8, 2016. We expect the aforesaid announcement to boost investors’ confidence in the stock. Higher transportation investments incurred by the government authorities of Australia and U.K, the recently passed U.S. Highway Bill and strategic acquisition of J.L. Patterson & Associates in Dec 2015 are all expected to boost Jacobs’ Buildings & Infrastructure segment’s top line in the near term.
Zacks Rank
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, robust industry competition and dismal pricing environment in the global mining and energy market raise concerns.
Stocks to Consider
Better-ranked stocks within the industry include Willdan Group, Inc. (WLDN - Free Report) , Boise Cascade Company (BCC - Free Report) and Caesarstone Ltd. (CSTE - Free Report) . All the three companies presently hold a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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