Jacobs Engineering Group Inc. ( J Quick Quote J - Free Report) is set to provide Facilities Condition Assessment (FCA) and Enterprise Asset Management (EAM) services to the Metropolitan Washington Airports Authority under the recent contract. This five-year contract that has one base year and multiple one-year options. According to the agreement, Jacobs is responsible for evaluating infrastructural management, examining the need of capital expenditures, tracking the areas of improvement and organizing the repair and maintenance work accordingly. This will help the airports authority plan for the overall betterment of airline and passenger experience at both Ronald Reagan Washington National Airport (DCA) and Washington Dulles International Airport (IAD). Jacobs' consulting team will synchronize the physical asset inventories with AM technology to reduce cost, enhance the quality and effectiveness of the resources, improve safety, health, and environment initiatives at both airports. With respect to this, executive vice president of Jacobs’ People & Places Solutions (P&PS) International, Ken Gilmartin, said, “Working collectively, we have the opportunity to improve the passenger experience and make travel easier for individuals using Washington, D.C.'s airports.” Jacobs’ Contract-Winning Spree Drives Growth
Efficient project execution is one of the main characteristics driving Jacobs’ performance over the past few quarters. This Zacks Rank #2 (Buy) company’s string of contract wins is testimony to the same.
Backlog at the end of fiscal first quarter was $25.1 billion, reflecting an increase of 11% year over year (up 7% on pro-forma basis). P&PS backlog rose 9% year over year in the fiscal first quarter to $15.4 billion. Overall, the backlog growth can be attributed to the company’s capitalizing on CH2M and KeyW revenue synergies. The P&PS segment’s overall sales pipeline has expanded, given pro-environmental Biden administration, broader potential infrastructure stimulus in the United States and an improving economic outlook. Jacobs’ shares have gained 22.9% in the year-to-date period compared with the Zacks Engineering - R and D Services industry’s 23.8% rally. Although the stock has slightly underperformed the industry during the said period, the company’s earnings estimates for 2021 have moved up 0.2% over the past 30 days, depicting analysts’ optimism regarding its bottom-line growth potential. This optimism is backed by the company’s improved segmental performances, solid backlog, strategic acquisitions and efforts to focus on high-value business. Other Key Picks
Other top-ranked stocks in the same industry include
Mayville Engineering Company, Inc. ( MEC Quick Quote MEC - Free Report) , Howmet Aerospace Inc. ( HWM Quick Quote HWM - Free Report) and Altair Engineering Inc. ( ALTR Quick Quote ALTR - Free Report) , each holding a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Mayville Engineering delivered an average earnings surprise of 23.5% in the last four quarters. Howmet Aerospace and Altair are expected to witness 15% and 45.2% earnings growth in 2021, respectively. Infrastructure Stock Boom to Sweep America
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