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Jacobs (J) to Support Naarea for Developing New Nuclear Reactor

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Jacobs Solutions Inc. (J - Free Report) has been selected to assist a French start-up company, Nuclear Abundant Affordable Resourceful Energy for All (“Naarea”), in developing a new nuclear power reactor.

Jacobs will offer support for nuclear safety along with various engineering disciplines that include control and instrumentation, mechanical and process. Within the three-year framework of work, both companies will collaboratively focus on delivering safe, clean and sustainable nuclear energy, thus promoting energy security and global sustainability.

The development of Naarea’s power reactor is being funded through the France 2030 investment plan, a strategic initiative by the government.

Following the announcement of the new award, shares of this provider of professional, technical and construction services gained 0.3% during the trading hours on Dec 13.

Strong Backlog Level Bodes Well

Jacobs’ efficient project execution has increased the demand for its consulting services in various sectors, including infrastructure, water, environment, space, broadband, cybersecurity and life sciences. This is reflected in its ongoing   backlog growth.

At fiscal 2023 end, the company reported a backlog of $29.1 billion, up 4.5% year over year. This reflects persistent solid demand for Jacobs' consulting services. The company 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 Investment Research
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Shares of Jacobs have increased 10.9% in the past six months compared with the Zacks Technology Services industry’s 13.4% growth. Even though the shares of the company underperformed its industry, its consistent contract wins on the back of efficient project execution are likely to boost its growth prospects.

Zacks Rank & Key Picks

Jacobs currently carries a Zacks Rank #4 (Sell).

Here are some better-ranked stocks from the Zacks Business Services sector.

Duolingo, Inc. (DUOL - Free Report) sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

It has a trailing four-quarter earnings surprise of 114%, on average. The stock has surged 217.7% in the past year. The Zacks Consensus Estimate for DUOL’s 2023 sales and earnings per share (EPS) suggests an increase of 42.6% and 116.6%, respectively, from the year-ago period’s levels.

TriNet Group, Inc. (TNET - Free Report) currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 77.4%, on average. The stock has hiked 85% in the past year.

The Zacks Consensus Estimate for TNET’s 2023 sales indicates a decline of 2.7% but EPS suggests a rise of 4%, respectively, from the year-ago period’s levels.

FirstCash Holdings, Inc. (FCFS - Free Report) currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 7.9%, on average. The stock has gained 31.6% in the past year.

The Zacks Consensus Estimate for FCFS’ 2023 sales and EPS indicates a 15.8% and a 13.1% rise, from the year-ago period’s levels.

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