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Jacobs (J), CDM Smith JV Wins PA TAC V Under FEMA Program

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Jacobs Solutions Inc.’s (J - Free Report) joint venture (“JV”) with CDM Smith was selected for the Public Assistance Technical Assistance Contract V (“PA TAC V”) under the U.S. Department of Homeland Security's Federal Emergency Management Agency's (“FEMA”) mission.

Per this indefinite delivery/indefinite quantity (“IDIQ”) contract, Jacobs will continue to offer hazard mitigation strategies through site inspection, field support, technical evaluation and cost analysis in the West Zone Regions. The responsibilities will include plans for rebuilding communities and critical infrastructures following disasters in these regions of the country. Additionally, the company will provide solutions to the FEMA program on the use of sustainable and resilient practices that will protect facilities from future disastrous events.

With an estimated maximum value of $570.5 million, this IDIQ contract has a base contract period of a year and can stretch up to four individual option years.

The alliance has been historically managing and supporting FEMA programs under the previous PA TAC III and IV contract vehicles. The recent win solidifies the long-standing relationship between the companies and their commitment to assisting communities in times of disaster.

Shares of Jacobs edged down 0.5% during the trading hours on Apr 4, 2024.

Robust Backlog Level Boosts Growth

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. The strong performance in the recent quarters is reflected through its ongoing contract.

The aforementioned statement is supported by its ongoing backlog growth. At the fiscal first-quarter end, the company reported a backlog of $29.6 billion, up 4.7% year over year. This reflects persistent solid demand for Jacobs' consulting services. Of this backlog, People & Places Solutions’ backlog was $17.86 billion compared with $17.24 billion in the comparable year-ago period. The Divergent Solutions segment’s backlog was $3.11 billion, up from $3.08 billion a year ago.

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.

 

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Shares of this professional, technical and construction services provider have gained 1.5% in the past month against the Zacks Technology Services industry’s 0.5% decline.

Zacks Rank & Key Picks

Jacobs currently carries a Zacks Rank #3 (Hold).

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

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

DUOL has a trailing four-quarter earnings surprise of 111.5%, on average. The stock has increased 58.1% in the past year. The Zacks Consensus Estimate for DUOL’s 2024 sales and earnings per share (EPS) indicates growth of 36.5% and 294.3%, respectively, from the year-ago period’s reported levels.

SPX Technologies, Inc. (SPXC - Free Report) presently flaunts a Zacks Rank of 1. SPXC has a trailing four-quarter earnings surprise of 23.2%, on average. The stock has hiked 80.6% in the past year.

The Zacks Consensus Estimate for SPXC’s 2024 sales and EPS indicates 13.1% and 16.7% increases from the year-ago period’s reported levels.

Spotify Technology S.A. (SPOT - Free Report) currently sports a Zacks Rank of 1. SPOT has a trailing four-quarter negative earnings surprise of 62.5%, on average. The stock has surged 123.4% in the past year.

The Zacks Consensus Estimate for SPOT’s 2024 sales and EPS suggests increases of 15.6% and 219.3%, respectively, from the year-ago period’s reported levels.

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