Jacobs' (J) StreetLight Partners TomTom, Expands Platform
Jacobs Solutions Inc.’s J subsidiary StreetLight Data, Inc. partnered with a location technology specialist — TomTom — to provide transportation data and insights worldwide.
Per the deal, TomTom’s extensive global data will be incorporated into the StreetLight’s cloud-based product range. TomTom's historical and real-time traffic analytics amplifies StreetLight’s InSight platform that transforms data into contextualized, normalized, and aggregated travel patterns.
This enables Jacobs to bolster its transportation analytics. Also, the partnership aims to empower planners and professionals with data-driven insights about transportation and infrastructure projects of any size and scope. This collaboration also facilitates powerful solutions for Jacobs in infrastructure planning, climate change mitigation and enhanced transportation on a worldwide scale.
Focus on Technology-Enabled Solutions
Jacobs is consistently undertaking various initiatives to enhance its business. In 2022, Jacobs undertook a “Boldly Moving Forward” strategy that comprises operational discipline to capture the high-growth opportunities emerging across Climate Response, Data Solutions and Consulting & Advisory. This will drive significant value for customers and enhance the profitability profiles of the company’s critical infrastructure, national security, energy transition and advanced facilities sectors.
The company has been accelerating the adoption of digital technology across all facets of operations on the back of its Focus 2023 initiative. The expected benefit of the initiative is $200 million compared with fiscal 2020. This move will reduce the physical real estate footprint by more than 30% as it significantly shifts to a more flexible and virtual workforce. Jacobs expects that by 2023, this transformative initiative — which will provide Jacobs with the flexibility to invest in the business materially — will drive growth through technology-enabled solutions.
Price Performance
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In the past three months, shares of Jacobs have increased 17.7% compared with the industry’s 1.6% rise. A solid backlog level depicts accelerating demand for Jacobs’s consulting services for infrastructure, water, environment, space, broadband, cybersecurity and life sciences. Also, focus on generating efficiencies through digital and technological solutions and solid project execution bodes well.
Zacks Rank & Key Picks
Jacobs currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Business Services sector are TriNet Group, Inc. TNET, Parsons Corporation PSN and DocuSign, Inc. DOCU.
TriNet currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
TNET delivered a four-quarter average earnings surprise of 84%. The company’s shares have risen 25.3% in the past year. The Zacks Consensus Estimate for TNET’s 2023 sales and earnings per share (EPS) indicates a decline of 4.7% and 2.7%, respectively, from the prior-year reported figures.
Parsons currently flaunts a Zacks Rank of #1. PSN has a four-quarter average earnings surprise of 5.2%. The stock has risen 34.8% in the past year.
The Zacks Consensus Estimate for PSN’s 2023 sales and EPS indicates growth of 18.5% and 23.2%, respectively, from the prior-year reported figures.
DocuSign currently sports a Zacks Rank of #1. DocuSign has a trailing four-quarter earnings surprise of 25.6% on average. Shares of the company have declined 18.7% in the past year.
The Zacks Consensus Estimate for DocuSign’s fiscal 2024 sales and EPS indicates a decline of 8.1% and 24.1%, respectively, from the year-ago reported levels.
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