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Jacobs' (J) P&PS to Rebuild NSW's St George Hospital Campus

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Jacobs Engineering Group Inc. (J - Free Report) has been selected as a lead architect and principal design consultant by the New South Wales (NSW) Health Infrastructure to rebuild the Sydney-based St George Hospital and Community Health Services campus.

Jacobs will deliver a new Integrated Ambulatory Care Precinct, providing improved capacity and capability to treat a growing and aging multicultural population managing chronic and complex diseases. The NSW government is likely to invest $282 million in the project, which is expected to be completed in 2025.

Jacobs’ People & Places Solutions’ senior vice president and general manager of Asia Pacific & Middle East, Keith Lawson, stated, "The COVID-19 pandemic is driving rapid adaptation and change in healthcare design. This is a great opportunity for Jacobs to help NSW reimagine the health services of tomorrow by incorporating innovative digital and virtual technologies into their design."

Jacobs’ shares moved up 0.62% on Jul 21.

Earlier, it worked for stage two of this project and delivered a new acute services building with enhanced critical care services, including a new birthing unit and two refurbished theaters.

Solid Project Execution to Drive Growth

Jacobs is witnessing rising demand for infrastructure, water, environment, space, broadband, cybersecurity and life sciences consulting services. Efficient project execution has been a primary factor driving Jacobs’ performance over the last few quarters. The company’s solid backlog level is a testimony to this fact.

At fiscal second quarter-end, it reported a backlog of $27.8 billion, up 8.7% year over year. This reflects persistent solid demand for Jacobs' consulting services. Of this backlog, CMS generated $10.5 billion, up from $9.78 billion reported a year ago. The upside provided strong visibility into the base business. P&PS backlog at quarter-end was $16.96 billion, up from $15.5 billion a year ago.

Zacks Investment Research
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J’s shares have outperformed the Zacks Engineering - R and D Services industry in the past three months. Earnings estimates for 2022 suggest 13.2% year-over-year growth.

Zacks Rank & Key Picks

Currently, Jacobs carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Primoris Services Corporation (PRIM - Free Report) , currently carrying a Zacks Rank #2 (Buy), provides a wide range of construction, fabrication, maintenance, replacement and engineering services.

PRIM’s 2022 earnings are likely to rise 19.4%. The company’s earnings estimates have remained stable at $2.59 over the past 60 days.

KBR, Inc. (KBR - Free Report) , currently carrying a Zacks Rank #1, provides scientific, technology and engineering solutions to governments and commercial customers. Its mission-critical government services, high-end and differentiated government business work, strong margin performance, proprietary technology solutions and a significant increase in backlog (particularly in Government Solution) are expected to boost 2022 earnings.

KBR’s 2022 earnings are likely to rise 7.9%. The company’s earnings estimates have remained stable over the past 60 days.

Toll Brothers Inc. (TOL - Free Report) , currently carrying a Zacks Rank #2, mostly offers luxury homes and its communities are located in prosperous suburban areas with easy access to major cities.

TOL’s expected earnings growth rate for fiscal 2022 is 53.7%. The consensus mark for its fiscal 2022 earnings has moved up to $10.19 per share from $9.87 in the past 60 days.