Jacobs Upped to Buy - Analyst Blog
March 21 2013 - 8:40AM
Zacks
On Mar 20, Zacks Investment
Research upgraded Jacobs Engineering Group Inc.
(JEC) 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) 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) carries a Zacks Rank #1 (Strong Buy)
2) AECOM Technology
Corporation (ACM) carries a Zacks Rank #2 (Buy).
AECOM TECH CORP (ACM): Free Stock Analysis Report
ENGILITY HLDGS (EGL): Get Free Report
JACOBS ENGIN GR (JEC): Free Stock Analysis Report
ROYAL DTCH SH-A (RDS.A): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Jacobs Engineering (NYSE:JEC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Jacobs Engineering (NYSE:JEC)
Historical Stock Chart
From Jul 2023 to Jul 2024