On Mar 20, Zacks Investment Research upgraded Jacobs Engineering Group Inc. (JEC - Analyst Report) to a Zacks Rank #2 (Buy).
Why the Upgrade?
Jacobs has been witnessing rising earnings estimates on the back of regular strong contract wins from well known market players. The company has also been implementing plans to expand its product and service offerings as well as its geographical presence.
Some recent contracts include a sulfuric acid plant contract from China-based Jiangsu Sailboat Petrochemical Co. and Clyde Terminal Project from Royal Dutch Shell Plc. (RDS.A - Analyst Report) in Australia, both in March.
Year-to-date Jacobs has won contracts in regions such as China, Australia, Saudi Arabia, Singapore and the U.S from various renowned companies with tenures ranging from six months to five years and more.
In addition, Jacobs reported decent fiscal first quarter 2013 results on Jan 23, with earnings per share of 76 cents, in line with the Zacks Consensus Estimate. Revenue increased 4.6% year over year to $2.6 billion in 2012.
Jacobs also maintained its outlook for fiscal 2013 to be in the range of $3.00 and $3.50 per share. Management sees ample opportunity to increase market share as end markets see significant improvement.
Most of the estimates for fiscal 2013 and fiscal 2014 have been revised upwards in the last 60 days. The Zacks Consensus Estimate for fiscal 2013 rose almost 1.5% to $3.35 while that for fiscal 2014 increased 4.2% to $3.74 in the same timeframe.
Other Stocks to Consider
The following companies in the services industry are also performing well and are worth considering.
1) Engility Holdings Inc. (EGL - Snapshot Report) carries a Zacks Rank #1 (Strong Buy)
2) AECOM Technology Corporation (ACM - Analyst Report) carries a Zacks Rank #2 (Buy).