JEC Jacobs Engineering Group Inc

Contract wins continue to flow for Jacobs Engineering Group Inc (JEC), as the company recently announced the Utah Ogden Air subcontract. Ogden Air Logistics Center at Hill Air Force Base in Utah is contracted to provide high technology products and services to the warfighters. Thus, the subcontract to Jacobs is a part of the Mission Planning Support Contract (MPSC II). Spiral Solutions and Technologies have also been awarded a subcontract along with Jacobs.

Per the contract, the team of experts of Jacobs will be providing logistics and sustainment support to the Air Combat Command, Air Mobility Command, Air Education and Training Command, Electronic Systems Command, and Air Force Reserve Command (AFRC). The financial terms of the contract have not been disclosed yet.

Through such contract wins, Jacobs has been diversifying its business across sectors like oil and gas, petrochemical, mining, IT services, power as well as defense. Such strategic contracts, won by Jacobs, both from federal governments as well as other clients hold future promise. In addition, the company is believed to nurture market share gains over the longer term, particularly across the emerging markets like China, Australia, Brazil, the Asian countries and Middle East.

Jacobs, one of the world's largest providers of technical, professional, and construction services, competes with other industry players like Fluor Corporation (FLR) and Foster Wheeler AG (FWLT). The company is well positioned to drive profits from international expansion and upstream development, leading to steady growth over the next several years.

We currently maintain a Neutral recommendation on Jacobs. The stock also bears a Zacks #2 Rank, which implies a short-term (1-3 months) Buy rating.

 
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