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Jacobs (J) Set to Construct Spaceport Facility in Houston
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Jacobs Engineering Group Inc. (J - Free Report) has received a design contract from Axiom Space for a facility in the Space City at Ellington Airport.
This leading professional, technical and construction services provider will design phase one of this architecture and engineering contract for the 100,000 sq ft Assembly, Integration and Testing facility. Spanning across 400-acre Houston Spaceport in the Space City at Ellington Airport, this facility will provide access to low Earth orbit and assemble the first commercial international space station. Upon completion, this private space station will be a center hub for research in facilitating microgravity experiments, manufacturing and commerce in low Earth orbit missions.
This is the first time that a spacecraft will be constructed in Houston, TX, which will provide the required infrastructure to expand operations and generate aerospace jobs in the area.
Pertaining to this contract, Jacobs’ senior vice president, People & Places Solutions Ron Williams said, “Privately funded infrastructure will drive U.S. leadership in space. Jacobs is committed to providing integrated solutions to accelerate the future of commercial space operations.”
Solid Project Execution: A Boon
Jacobs has been witnessing accelerating demand for consulting services for infrastructure, water, environment, space, broadband, cybersecurity and life sciences. Efficient project execution has been one of the main characteristics driving Jacobs’ performance over the last few quarters. The company’s solid backlog level is a testimony to the fact. At fiscal 2021-end, it reported a backlog of $26.6 billion, up 12% year over year. This reflects persistent solid demand for Jacobs' consulting services.
Given the growth dynamics, Jacobs projects double-digit adjusted EBITDA growth for fiscal 2022. Beyond 2022, Jacobs expects strong organic growth to result in $10 per share of adjusted EPS in fiscal 2025.
Coming to the share price performance, Jacobs’ shares have gained 15.8% over a year compared with the industry’s 18.9% growth. Yet, earnings estimates for fiscal 2022 have increased to $7.11 per share from $7.00 over the past seven days. The estimated figure also indicates a year-over-year improvement of 13%.
Image Source: Zacks Investment Research
Overall, share price of Jacobs should continue to maintain positive momentum in the near term, as the company’s solutions are closely aligned with President Biden’s policies and industry trends. Jacobs is expected to benefit from strong global trends in infrastructure modernization, energy transition, national security and a potential super-cycle in global supply chain investments.
Toll Brothers Inc. (TOL - Free Report) currently sports a Zacks Rank #1. This Horsham, PA-based luxury homebuilder builds single-family detached and attached home communities; master-planned luxury residential resort-style golf communities; and urban low, mid, and high-rise communities, principally on the land it develops and improves. It has been benefiting from the strategy of broadening product lines, price points and geographies.
Toll Brothers’ earnings for fiscal 2022 are expected to rise 46.3% year over year.
D.R. Horton (DHI - Free Report) currently carries a Zacks Rank #2 (Buy). This Texas-based prime homebuilder continues to gain from industry-leading market share, a solid acquisition strategy, a well-stocked supply of land, lots, and homes along with affordable product offerings across multiple brands.
D.R. Horton’s earnings are expected to rise 27.1% year over year in fiscal 2022.
Quanta Services, Inc. (PWR - Free Report) currently carries a Zacks Rank #2. Based in Houston, TX, Quanta is gaining from a three-pronged growth strategy focusing on the timely delivery of projects to exceed customer expectations, leverage core business to expand in complementary adjacent service lines and enable the continuation of exploring new service lines. Overall, the company’s engineering and project management capabilities allow it to capitalize on the market trends that are currently skewed toward the engineering, procurement, and construction or EPC model.
Quanta’s earnings are expected to grow 28.3% in 2022.
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Jacobs (J) Set to Construct Spaceport Facility in Houston
Jacobs Engineering Group Inc. (J - Free Report) has received a design contract from Axiom Space for a facility in the Space City at Ellington Airport.
This leading professional, technical and construction services provider will design phase one of this architecture and engineering contract for the 100,000 sq ft Assembly, Integration and Testing facility. Spanning across 400-acre Houston Spaceport in the Space City at Ellington Airport, this facility will provide access to low Earth orbit and assemble the first commercial international space station. Upon completion, this private space station will be a center hub for research in facilitating microgravity experiments, manufacturing and commerce in low Earth orbit missions.
This is the first time that a spacecraft will be constructed in Houston, TX, which will provide the required infrastructure to expand operations and generate aerospace jobs in the area.
Pertaining to this contract, Jacobs’ senior vice president, People & Places Solutions Ron Williams said, “Privately funded infrastructure will drive U.S. leadership in space. Jacobs is committed to providing integrated solutions to accelerate the future of commercial space operations.”
Solid Project Execution: A Boon
Jacobs has been witnessing accelerating demand for consulting services for infrastructure, water, environment, space, broadband, cybersecurity and life sciences. Efficient project execution has been one of the main characteristics driving Jacobs’ performance over the last few quarters. The company’s solid backlog level is a testimony to the fact. At fiscal 2021-end, it reported a backlog of $26.6 billion, up 12% year over year. This reflects persistent solid demand for Jacobs' consulting services.
Given the growth dynamics, Jacobs projects double-digit adjusted EBITDA growth for fiscal 2022. Beyond 2022, Jacobs expects strong organic growth to result in $10 per share of adjusted EPS in fiscal 2025.
Coming to the share price performance, Jacobs’ shares have gained 15.8% over a year compared with the industry’s 18.9% growth. Yet, earnings estimates for fiscal 2022 have increased to $7.11 per share from $7.00 over the past seven days. The estimated figure also indicates a year-over-year improvement of 13%.
Overall, share price of Jacobs should continue to maintain positive momentum in the near term, as the company’s solutions are closely aligned with President Biden’s policies and industry trends. Jacobs is expected to benefit from strong global trends in infrastructure modernization, energy transition, national security and a potential super-cycle in global supply chain investments.
Zacks Rank
Jacobs currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some Better-Ranked Stocks in Construction Sector
Toll Brothers Inc. (TOL - Free Report) currently sports a Zacks Rank #1. This Horsham, PA-based luxury homebuilder builds single-family detached and attached home communities; master-planned luxury residential resort-style golf communities; and urban low, mid, and high-rise communities, principally on the land it develops and improves. It has been benefiting from the strategy of broadening product lines, price points and geographies.
Toll Brothers’ earnings for fiscal 2022 are expected to rise 46.3% year over year.
D.R. Horton (DHI - Free Report) currently carries a Zacks Rank #2 (Buy). This Texas-based prime homebuilder continues to gain from industry-leading market share, a solid acquisition strategy, a well-stocked supply of land, lots, and homes along with affordable product offerings across multiple brands.
D.R. Horton’s earnings are expected to rise 27.1% year over year in fiscal 2022.
Quanta Services, Inc. (PWR - Free Report) currently carries a Zacks Rank #2. Based in Houston, TX, Quanta is gaining from a three-pronged growth strategy focusing on the timely delivery of projects to exceed customer expectations, leverage core business to expand in complementary adjacent service lines and enable the continuation of exploring new service lines. Overall, the company’s engineering and project management capabilities allow it to capitalize on the market trends that are currently skewed toward the engineering, procurement, and construction or EPC model.
Quanta’s earnings are expected to grow 28.3% in 2022.