Jacobs Engineering Group Inc. JEC recently secured a new feasibility study contract from Borealis AG, for the development of the latter’s Belgium polypropylene plants. The new deal will not only make Borealis the leading polypropylene supplier in Europe but would also fortify Jacobs’ chemical business in the continent.
Over the last three months, shares of this Zacks Rank #2 (Buy) company have gained 7.5%, as against the 4.5% loss recorded by the industry.
Notably, the stock currently flaunts a VGM Score of B.
The company is poised to grow on the back of contract wins, strategic restructuring moves and CH2M HILL Companies Ltd. (‘CH2M’) acquisition (December 2017). Notably, Jacobs stated that the CH2M acquisition will make its business worth $15 billion over the long run.
Inside the Headlines
Borealis’ large-scale PDH facility project is a massive investment of European chemical industry. On completion, this plant is estimated to have an annual production capacity of 740 kilotons. Hence, this world-famous facility is anticipated to help supplement the rising market demand for propylene and polypropylene.
Earlier this January, Borealis awarded a front-end engineering design (FEED) contract to Jacobs for its propane dehydrogenation (PDH) plant, located at Kallo, Belgium. The deal involves formulating the elementary design package for the outside as well as inside battery limit areas of the new PDH plant.
Per the recently-secured contract, Jacobs will access the viability of expanding the capacity of the polypropylene plants and hence ensure that the additional propylene supply (secured from the new PDH plant installation) is fully exploited.
Other Stocks to Consider
Some other top-ranked stocks in the Zacks Categorized Construction Sectorare listed below:
Boise Cascade, L.L.C. BCC sports a Zacks Rank #1 (Strong Buy). The company pulled off an average positive average earnings surprise of 116.28% over the last four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
TopBuild Corp. BLD flaunts a Zacks Rank #1. The company generated an average positive earnings surprise of 10.33% over the preceding four quarters.
Beazer Homes USA, Inc. BZH holds a Zacks Rank #2. The company recorded an average positive average earnings surprise of 274.27% over the trailing four quarters.
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