Jacobs (JEC) To Boost Organic Growth On Energy Contract

Jacobs Engineering Group Inc. (NYSE:JEC) recently secured a new contract from the energy business arm of Carcross/Tagish First Nation (C/TFN) — Carcross/Tagish Energy Corporation (C/TEC) — for an undisclosed amount.
C/TEC creates eco-energy business prospects and sustainable employments for the citizens and communities of the First Nations of Canada.

As per this three-year deal, the company will provide its premium technical consultation and engineering services for the various projects and business initiatives undertaken by C/TEC in Northern British Columbia and the Traditional Territories of Southern Yukon, such as the Montana Mountain’s wind power generation project.

The company believes the aforementioned engineering service contract will fortify its energy business. Notably, deal from this new energy client will strengthen its footprint in the First Nations of Canada.

Jacobs has previously offered various state-of-the-art sustainable solutions for its Canadian renewables and power generation clients. The users generated significant amount of cost savings with the assistance of these solutions.

Our Take

Over the last three months, Jacobs’ shares have rallied 19.4%, outperforming 12.1% growth recorded by the industry.

This Zacks Rank #2 (Buy) stock has been boosting its competency on the back of numerous contract wins. Over the last few months, the company has secured contracts from various institutions and companies like Evonik Industries, Department of Energy National Nuclear Security Administration (NNSA), Aerie Pharmaceuticals, Inc. (NASDAQ:AERI) and Ferring Pharmaceuticals Inc. In addition, the acquisition of CH2M HILL Companies Ltd. (December 2017) will fortify Jacobs’ business in the near term.

Jacobs quotes competitive prices for its contracts and ensures that the number of contract receipts increases over time. Notably, elevated transportation spending of the government authorities of Australia, the U.K. and the United States has largely increased the company’s contract-winning opportunities.

Other Stocks to Consider

Two other top-ranked stocks within the Zacks Classified Construction Sector are listed below:

Century Communities, Inc. (NYSE:CCS) currently sports a Zacks Rank #1 (Strong Buy). The company has pulled off a positive average earnings surprise of 27.05% in the last four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.

D.R. Horton, Inc. (NYSE:DHI) flaunts a Zacks Rank #1. The company generated a positive average earnings surprise of 5.01% during the same time frame.

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