Zacks_Analysts' Blog : JEC Wins Deal, Signs Resource Pact - Analyst Blog

Recently, Jacobs Engineering Group Inc. (JEC) announced winning of a contract from the Washington State Department of Transportation (WSDOT). As per the contract, the company will be providing design services for fire and life safety systems improvements within the Mount Baker and Mercer Island tunnels along I-90 in the Seattle metro area.

The company’s design effort will focus on multiple systems within the existing tunnels, including fire detection and suppression, ventilation, emergency egress, intelligent transportation and illumination. This system upgrade is expected to add a High Occupancy Vehicle (HOV) lane through the tunnels, and prepare the highway corridor for the future extension of light rail between Seattle and the cities of Bellevue and Redmond.

The above contract extends Jacobs work history with WSDOT on the I-90 Corridor since1980s. The value of the contract has not yet been disclosed.

In a separate story, Jacobs signed a resource protocol for the recruitment of employees from Magnox Limited to Jacobs' United Kingdom operations. The resource protocol is expected to provide Jacobs access to a highly skilled pool of talent in order to augment and develop its various teams of experts providing life cycle services to the nuclear industry.

Jacobs shares a long history of working with Magnox and the later is involved in safely delivering the company’s business objectives. This resource protocol strengthens the tie and increases career choices for Magnox staff and is anticipated to help them develop their careers within UK nuclear industry—primarily related to nuclear decommissioning, nuclear power and electricity generation, or within defense projects.

Jacobs, the world's largest and most diverse providers of technical, professional, and construction services, directly competes with its peers, viz. Fluor Corporation (FLR) and Foster Wheeler AG (FWLT).

We currently have a Neutral recommendation on the stock. Jacobs has a Zacks #4 Rank, implying a short-term (1-3 months) Sell rating.