U.S. Markets closed

Jacobs (JEC) Wins Contract for Polyethylene Plant Extension

Zacks Equity Research

Jacobs Engineering Group Inc. JEC secured a contract from Exxon Mobil Corp. XOM, for an undisclosed amount. Per the deal, Jacobs would be providing its premium engineering, construction management and designing services for part of a new 650 kTa polyethylene facility of Exxon Mobil, located in its Beaumont polyethylene plant.

Per the contract, Jacobs would be supporting the installation as well as works of various offsite facilities of the plant, such as interconnecting piping and rail, for the new polyethylene train. Post completion, the facility will produce pelletized polyethylene which shall be used for manufacturing plastic products.

Jacobs declared that it would design an efficient and safe construction plan for the 650 kTa polyethylene facility, and improve the degree of versatility and integration of the plant as well.

We believe that the latest expansion contract received from Exxon Mobil would reinforce Jacobs’ ongoing organic growth strategy. Moreover, the company has recently won a number of major Australian transportation contracts. All these deals are expected to boost Jacobs’ top line in the quarters ahead.

However, amid such prospective deals, Jacobs carries a Zacks Rank #4 (Sell). Major headwinds such as a strong U.S. dollar, cutthroat industry competition and dismal pricing environment in the global mining and energy markets have been hurting the company’s growth prospects.

JACOBS ENGIN GR Price

 

JACOBS ENGIN GR Price | JACOBS ENGIN GR Quote

Jacobs’ stock price was $59.19 per share as of Nov 15, 2016.

Stocks to Consider

Better-ranked stocks within the industry include EMCOR Group Inc. EME and MasTec, Inc. MTZ.

EMCOR currently sports a Zacks Rank #1 (Strong Buy) and has an average positive earnings surprise of 11.96% for the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.

MasTec, Inc. currently carries a Zacks Rank #2 (Buy) and has an average positive earnings surprise of 61.26% for the trailing four quarters.

The Best Place to Start Your Stock Search

Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
JACOBS ENGIN GR (JEC): Free Stock Analysis Report
 
EMCOR GROUP INC (EME): Free Stock Analysis Report
 
MASTEC INC (MTZ): Free Stock Analysis Report
 
EXXON MOBIL CRP (XOM): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research