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Two More Contracts for Jacobs

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Engineering and construction company, Jacobs Engineering Group Inc. (JEC) recently added two more contracts to its existing list. The first contract was awarded by the Pennsylvania Department of Transportation, under which Jacobs will supply integration support services and intelligent transportation systems design. The financial details of the deal were kept confidential.

This is not the first association between the two parties. Jacobs has been providing similar services to the Pennsylvania Department of Transportation since 2008. Per the current contract, Jacobs will be providing communication network management, design support, construction management support and system integration support.

On the same day, Jacobs received another contract from BP plc (BP) to provide process and infrastructure work. The contract needs to be executed for the greenfield Khazzan project in the Sultanate of Oman. The project is part of the development of one of Middle East’s largest unconventional tight gas accumulations. The financial terms of this contract have also been kept under wraps.

Per the contact, Jacobs will be responsible for supplying engineering, procurement and construction management services, along with program management and detailed design for the associated project infrastructure. Jacobs is expected to leverage its technical experience in tight gas projects to complete the assignment.

With the continuous contract wins, we expect the company to achieve greater success in the quarters to come. Jacobs currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry that warrant a watch include Taylor Morrison Home Corporation (TMHC) and Quanta Services, Inc. (PWR). While Taylor Morrison Home sports a Zacks Rank #1 (Strong Buy), Quanta Services holds a Zacks Rank #2 (Buy).

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