Jacobs Engineering Group Inc. (JEC - Free Report) recently divested 40% interest in Neste Jacobs Oy and also secured a contract extension from the United States Air Force Communication, Navigation, Surveillance/Air Traffic Management (CNS/ATM). Shares of this Zacks Rank #3 (Hold) company were up nearly 1.1% to $58.79 as of Oct 2, after news of the contract extension surfaced.
Jacobs intends to boost is profitability on the back of active portfolio management, strategic acquisitions and balanced organic growth.
In sync with this, Jacobs recently (Sep 29, 2017) divested 40% interest of its joint venture business — Neste Jacobs Oy — to Neste Corporation, for an undisclosed amount. Henceforth, Neste Corp. will hold all shares of Neste Jacobs Oy.
In addition, on Sep 28, Jacobs secured a contract extension for the software development of the United States Air Force Communication, Navigation, Surveillance/Air Traffic Management (CNS/ATM). The deal, worth $34.6 million, will likely have a tenure of more than five years, if all options work out.
Since the beginning of this September, Jacobs has secured contracts from Evonik Industries, the Department of Energy National Nuclear Security Administration (NNSA), Aerie Pharmaceuticals, Inc. (AERI - Free Report) and Ferring Pharmaceuticals Inc. Notably, Jacobs has also signed an agreement (Aug 7, 2017) to acquire CH2M HILL Companies Ltd., which is in sync with its efforts to become a $15 billion global solutions provider over the long run.
Jacobs quotes competitive prices for its contracts and ensures that the number of contract receipts increases over time. Notably, higher transportation spending of the government authorities of Australia, the U.K. and the United States has largely increased the company’s contract winning opportunities.
Stocks to Consider
Better-ranked stocks in the same space are listed below:
TopBuild Corp. (BLD - Free Report) currently sports a Zacks Rank #1 (Strong Buy) and has an average positive earnings surprise of 10.42% for the last four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Beazer Homes USA, Inc. (BZH - Free Report) also flaunts a Zacks Rank #1 and generated an impressive average positive earnings surprise of 103.47% during the same time frame.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>