Jacobs Engineering Group Inc. (JEC - Free Report) has secured a contract from Eastman Chemical Company (EMN - Free Report) for providing construction support to two facilities of the latter.
The latest contract authorizes Jacobs to support capital construction, as well as maintenance and turnaround services at its facilities in Longview, TX, and Kingsport, TN. Not only Jacobs will extend additional maintenance services at the Kingsport facility, but also it will expand its delivery to maintenance and construction at Eastman's Longview facility.
Jacobs has been one of the trusted partners of Eastman since 2010 and supported major capital projects at Eastman’s largest manufacturing sites.
Efficient project execution has been one of the main characteristics that is driving Jacobs’ performance since the last few quarters. The company’s ongoing contract wins are a testimony to the fact. Earlier this month, Jacobs has been selected in AusNet Services' Regulated Energy Services panel for engineering and design work associated with regulated transmission and distribution assets. This three-year contract incorporates both greenfield and brownfield asset upgrades, infrastructure replacements, and the delivery of new energy infrastructure in an evolving and innovative sector. The contract also involves two single-year extensions (Read more: Jacobs Wins AusNet Services' Engineering & Design Deal).
Share Price Performance
Shares of Jacobs, a Zacks Rank #2 (Buy) company, have broadly outperformed the industry so far this year. Its shares have gained 0.8% in the said time frame against its industry’s decline of more than 14%.
Although earnings estimates for fiscal 2018 have remained stable over the past 30 days, the same moved 0.2% north for the next fiscal. The company’s earnings per share are expected to grow 31.5% for fiscal 2018 and 18% for fiscal 2019. Notably, Jacobs currently flaunts a VGM Score of A. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Elevated construction spending in the United States, impressive labor market scenario, modest inflation and Trump’s impetus to boost infrastructure spending have been triggering demand for Jacob’s state-of-the-art construction, and engineering services since the past few quarters. This will further drive its performance going forward.
Other Stocks to Consider
Other top-ranked stocks in the same sector include Aegion Corporation (AEGN - Free Report) and Altair Engineering Inc. (ALTR - Free Report) , both carrying a Zacks Rank #2.
Aegion and Altair Engineering’s current-year earnings are expected to grow 34% and 3.9%, respectively.
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