Jacobs (JEC) Forms JV With Saudi Aramco For PMCM Services

Jacobs Engineering Group Inc. (NYSE:JEC) inked an agreement with Saudi Aramco to establish a Saudi Arabia-based joint venture (JV). The JV business would provide premium professional program and construction management (PMCM) services for the country as well other regions across North Africa and the Middle East.

Over the last one year, shares of this Zacks Rank #3 (Hold) stock yielded a return of 8.98%, outperforming 8.89% growth recorded by the Zacks categorized Engineering - R and D Services industry.

Notably, the stock currently carries a favorable Value Growth Momentum Style Score “A”. The company is poised to grow on the back of increasing demand for building and infrastructure services, new business contracts and greater operational efficacy.

Inside the Headlines

Jacobs has been providing premium construction services in Saudi Arabia for more than 40 years. The company noted that its JV business with Saudi Aramco will support the Kingdom’s Vision 2030 program like an effective economic catalyst. The program aims to turn Saudi Arabia into an investment powerhouse of the globe – a unique hub connecting three continents.

Saudi Aramco and Jacobs’ JV business would offer services for various social infrastructure projects, in turn changing the social substructure of different regions in and around the country. In addition to this, the company would be creating high skilled jobs for Saudi nations through a competitive and sustainable program.

Stocks to Consider

Some better-ranked stocks in the industry are listed below:

Boise Cascade Company (NYSE:BCC) generated an outstanding average positive earnings surprise of 114.74% over the trailing four quarters and currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

TopBuild Corp. (NYSE:BLD) , which sports a Zacks Rank #1, has an average positive earnings surprise of 5.98% for the past four quarters.

Armstrong World Industries, Inc. (NYSE:AWI) currently carries a Zacks Rank #2 (Buy) and has an average positive earnings surprise of 1.73% for the last four quarters.

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