Jacobs Engineering Group Inc. J received a five-year, $17.5 million contract from the Broward County Transportation Department. J will provide program management services for the latter’s first-ever public transit expansion program.
This 30-year, $4.4 billion program will transform the county’s transportation infrastructure into a multimodal transit system with a new light rail route connecting Fort Lauderdale-Hollywood International Airport to Port Everglades in Florida.
Per the deal, Jacobs will manage all program services, from developing design criteria for the initial rail transit project to identifying ways to optimize system maintenance and operations. Along with light rail, the program includes bus rapid transit and commuter rail, as well as transit-oriented development and affordable housing.
Solid Project Execution to Drive Growth
Jacobs’s ability to execute projects efficiently has played a pivotal role in driving the company’s performance in recent quarters. The continuous success in securing new contracts stands as evidence of this proficiency.
Ranked as No.1 in program management by Engineering News-Record, Jacobs has delivered programs like New York City’s Grand Central Madison project, which transformed the busiest commuter railroad in the United States., the Thames Tideway Tunnel, one of the largest water infrastructure projects ever undertaken in the U.K., and Etihad Rail, one of the largest infrastructure efforts in the United Arab Emirates.
The solid project execution efforts are supported by its ongoing backlog growth. At the fiscal second-quarter end, the company reported a backlog of $29.4 billion, up 2% year over year. This reflects persistent solid demand for Jacobs’ consulting services. Of this backlog, People & Places Solutions’ backlog was $17.93 billion compared with $17.56 billion in the year-ago period. The backlog at the Critical Mission Solutions segment was $8.45 billion, up from $8.14 billion a year ago.
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J’s shares have gained 11.7% in the past six months compared with the Zacks Technology Services industry’s 27% growth. Although the stock has underperformed the industry, its earnings per share (EPS) estimates for fiscal 2024 reflect 10.8% year-over-year growth.
Zacks Rank & Stocks to Consider
Currently, Jacobs carries a Zacks Rank #4 (Sell).
Here are some better-ranked stocks in the same space:
AppLovin Corporation APP currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
APP delivered a trailing four-quarter earnings surprise of 60.9%, on average. The Zacks Consensus Estimate for APP’s 2024 sales and EPS indicates growth of 31.7% and 202%, respectively, from the prior-year levels. Shares of APP have gained 227.4% over the past year.
Duolingo, Inc. DUOL currently sports a Zacks Rank of 1. Shares of DUOL have gained 19.8% over the past year.
DUOL delivered a trailing four-quarter earnings surprise of 115.2%, on average. The Zacks Consensus Estimate for DUOL’s 2024 sales and EPS indicates growth of 37.8% and 397.1%, respectively, from the prior-year levels.
SPX Technologies, Inc. SPXC presently flaunts a Zacks Rank of 1. SPXC has a trailing four-quarter earnings surprise of 13.9%, on average. The stock has surged 88.9% in the past year.
The Zacks Consensus Estimate for SPXC’s 2024 sales and EPS indicates 14.7% and 24.4% increases from the year-ago period’s reported levels.
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