Jacobs Engineering Group Inc. (JEC - Free Report) recently secured a $350 million indefinite quantity/indefinite delivery curative action contract from the U.S. Army Corps of Engineers New England District (USACE NAE). It also received a five-year contract extension from the Saudi Aramco.
USACE NAE Deal
Per the USACE NAE deal, Jacobs would be providing environmental restoration & remediation, facility conservation and technical support services in the New Bedford Harbor Superfund Site (‘NBHSS’).
USACE has been coached by the U.S. Environmental Protection Agency (‘EPA’), to clean the polychlorinated biphenyl-contaminated sediments from the NBHSS. It is one of the oldest commercial and recreational navigation harbors in the East Coast of United Sates and embraces a large commercial fishing fleet.
Since the last twelve years, Jacobs has assisted USACE NAE by tackling various challenges and unique conditions of the NBHSS. Under the new remedial contract, Jacobs’ premium management and technical actions would be deployed to clean the NBHSS harbor, within a stipulated time and with a cost-effective approach.
Saudi Aramco Deal Extension
Saudi Aramco has extended its general engineering services (‘GES’) contract for Jacobs by five years. The renewed deal is based on the framework of the original contract signed in 2011. The value of the extended contract remains undisclosed.
Per the extended contract, Jacobs would be providing its premium procurement, engineering and construction management services linked with the capital program of Saudi Aramco. The extended deal aligns with the In-Kingdom Total Value Add program of Saudi Aramco, planned to boost domestic value creation in the country (via innovation, local employability, greater global competitiveness and skill workforce development).
Share Price and Zacks Rank
Jacobs currently carries a Zacks Rank #4 (Sell). Major headwinds such as a strong U.S. dollar, cutthroat industry competition and dismal pricing environment in the global mining and energy markets are currently hurting the company’s growth prospects.
Jacobs’ stock price was $61.69 per share as of Nov 23, 2016.
Stocks to Consider
Better-ranked stocks within the industry are listed below:
Willdan Group, Inc. (WLDN - Free Report) currently sports a Zacks Rank #1 (Strong Buy) and has an average positive earnings surprise of 18.72% for the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
MasTec, Inc. (MTZ - Free Report) currently carries a Zacks Rank #2 (Buy) and has an average positive earnings surprise of 61.27% for the trailing 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%.
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