Jacobs Engineering Group Inc. (JEC - Free Report) is steadily boosting its organic growth trajectory on several meaningful contract wins. Notably, the company is securing several transportation contracts from Australia at present.
New light-rail and high speed projects as well as greater government rail expenditure is currently booting Jacobs’s Buildings & Infrastructure line of business in the U.S. Also, the newly passed U.S. Highway Bill in Dec, 2015, is expected to reinforce the segments’ business in the quarters ahead.
Particularly we notice that greater transportation investments made by the government authorities of Australia has become highly fruitful for Jacobs. The Australian government is currently investing more than $3.4 billion in variable urban rail projects. The move is in sync with its intension to create more productive and livable communities through well-organized, safe and more effectual transport networks. These initiatives also supports the country’s Smart Cities Plan, that intends to build an innovative and prosperous nation.
The buoyant infrastructure market of Australia has gifted Jacobs with several lucrative contracts. In order to reduce congestion and make more population cities well organized, the transportation authorities of the country have sanctioned a number of major projects to Jacobs.
Hurstbridge Rail Line Upgrade, the Pakenham Rail Depot projects and the Bruce Highway Upgrade are some prominent transportation projects secured by Jacobs. Moreover, the company is presently delivering its services in several other projects such as the Forrestfield Airport Link, Sydney CBD Light Rail and the Westconnex, Darlington Upgrade Project.
String of these lately secured contracts is not only underpinning Jacobs status as a major transportation infrastructure service provider but would also likely boost its revenues in the quarters ahead.
However, amid such prospective deals, Jacobs carries a Zacks Rank #4 (Sell) due to some major headwinds. Adverse externalities such as a strong U.S. dollar, robust industry competition and dismal pricing environment in the global mining and energy markets are currently hurting the company’s growth scopes.
Jacobs’ stock price was $54.91 per share as of Nov 9, 2016.
Better Ranked Stocks that Warrant a Look
Some better-ranked stocks within the industry that warrant a look include:
EMCOR Group Inc. (EME - Free Report) currently carries a Zacks Rank #1 (Strong Buy) and has an average positive earnings surprise of 11.95% over the four trailing quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
DR Horton Inc. (DHI - Free Report) currently carries a Zacks Rank #2 (Buy) and has an average positive earnings surprise of 2.01% over the last four quarters.
Comfort Systems USA Inc. (FIX - Free Report) currently carries a Zacks Rank #2 and has an average positive earnings surprise of 15.83% over the trailing four quarters.
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