Jacobs Engineering Group Inc. ( J Quick Quote J - Free Report) has secured an engineering service contract to serve U.S. Army Corps of Engineers’ (USACE) Mobile District Military Design and Construction (MILCON) Program. This Indefinite Delivery, Indefinite Quantity (IDIQ), Multiple Award Task Order Contract (MATOC) contact will provide Jacobs with unique opportunities to highlight its technical expertise and leadership at the U.S. Army, U.S. Air Force, Special Operations Command, Defense Health Programs, and other Department of Defense programs and agencies, especially in the Southeast region. The scope of the work includes comprehensive planning services, engineering studies and investigations, design for building renovations and additions as well as development of construction plans and specifications for new vertical construction projects. Jacobs’ Federal & Environmental Solutions’ Senior Vice President and General Manager, and retired USAF Major General Tim Byers said, "Mobile has a robust Military Design and Construction Program and we can aid USACE to deliver innovative, sustainable and resilient solutions." Notably, this MATOC is valued at $249 million for a term of not more than five years. Growth Drivers
Jacobs is majorly benefiting from Federal & Environmental Solutions, and the Critical Mission Solutions business. Federal solutions lend support to U.S. federal, public sector, private sector and defense contractors.
Also, efficient project execution has been one of the main factors driving Jacobs’ performance for the last few quarters. The company’s ongoing contract wins are an evidence of the fact. Recently, it received a four-year contract from the Nuclear Decommissioning Authority (“NDA”) in the U.K. to facilitate asset management solutions. Per the contract, Jacobs and its strategic supplier, PA Consulting, will assist the NDA on the execution of its asset management plan. Q2 Results & Share Performance
For second-quarter fiscal 2021, the company’s backlog was $25.6 billion, reflecting a year-over-year increase of 9.6%. This reflects persistent solid demand for Jacobs' consulting services. CMS backlog grew 7% year over year and 6% on a pro-forma basis for the fiscal second quarter, which provided strong visibility into the base business. The company’s overall 18-month qualified new business pipeline of more than $30 billion remains very strong.
P&PS backlog was also up 9.6% year over year for the fiscal second quarter to $15.5 billion. The P&PS segment’s overall sales pipeline has increased, as both life sciences and electronics customers have moved forward with the previously paused projects. Jacobs’ shares have gained 18.1% over the past three months compared with the industry’s 14.6% rally. Earnings estimates for 2021 have moved 0.7% upward in the past seven days, depicting analysts’ optimism regarding the company’s growth potential. The upward trend is attributable to its persistent focus on shifting toward digitization and leadership in strategic end markets. Also, the company’s inorganic strategies and solid backlog are likely to drive near-term results. Zacks Rank
Jacobs — which shares space with
Quanta Services, Inc. ( PWR Quick Quote PWR - Free Report) , AECOM ( ACM Quick Quote ACM - Free Report) and KBR, Inc. ( KBR Quick Quote KBR - Free Report) in the Zacks Engineering - R and D Services industry — currently carries a Zacks Rank #2 (Buy). You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Breakout Biotech Stocks with Triple-Digit Profit Potential
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