Jacobs Solutions Inc. J, the University of Manchester and the U.K. Engineering and Physical Sciences Research Council’s (EPSRC) Prosperity Partnerships program came ahead to co-fund a new international research center — Centre for Robotic Autonomy in Demanding and Long-lasting Environments (CRADLE). The research center will be built over a span of five years for a total value of $11 million.
CRADLE will engage in researching new technologies for heavily regulated sectors like space, nuclear decommissioning, energy generation and urban infrastructure. This research center will develop robotics and autonomous systems to offer primary support in climate response.
Jacobs will invest $4.6 million for the development of CRADLE. It will also have an opportunity to commercialize these technologies. These will have a revolutionary impact on its clients’ asset management and operations in urban infrastructure, energy generation, nuclear power, decommissioning and space exploration. The company’s experts will support 12 PhD students in conducting research and performing prototype demonstrations at The University of Manchester as well as at its robotics laboratories in Warrington.
Jacobs’ Strategies & Solid Project Execution Bode Well
Jacobs undertook the Boldly Moving Forward strategy in 2022 that comprises operational discipline to capture the high-growth opportunities emerging across Climate Response, Data Solutions and Consulting & Advisory. It is expected to 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 executing this strategy well and is creating compelling returns while advancing sustainability and social value in global communities.
Jacobs’ efficient project execution has been one of the main characteristics driving its performance over the last few quarters. The company’s ongoing contract wins are a testimony to this fact. The backlog at the end of second-quarter fiscal 2023 was $29 billion, up 4% from a year ago. Of this backlog, Critical Mission Solutions (CMS) accounted for $8.14 billion and People & Places Solutions accounted for $17.6 billion.
Also, Jacobs announced its intent to separate the CMS business. This marks one of its strategic portfolio transformation initiatives to create a higher growth and margin business portfolio focused on critical infrastructure and sustainability. Jacobs expects to complete the transaction in the second half of fiscal 2024.
Image Source: Zacks Investment Research
In the year-to-date period, shares of Jacobs have declined 6% against the Zacks Technology Services industry’s growth of 5.9%.
Although the professional, technical and construction services provider’s stock price declined, most likely due to its narrowed fiscal 2023 guidance, its consistent contract wins will help it achieve growth momentum.
Zacks Rank & Key Picks
Jacobs currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks from the Zacks Business Services sector are:
SPX Technologies, Inc. SPXC currently sports a Zacks Rank #1. SPXC has a trailing four-quarter earnings surprise of 28.4%, on average. Shares of the company have gained 51.6% in the past year.
The Zacks Consensus Estimate for SPXC’s 2023 sales and EPS indicates growth of 11.7% and 26.5%, respectively, from the year-ago reported levels.
SPS Commerce, Inc. SPSC currently carries a Zacks Rank #2 (Buy). SPSC delivered a four-quarter average earnings surprise of 16.4%. The company’s shares have risen 47.2% in the past year.
The Zacks Consensus Estimate for SPSC’s 2023 sales and EPS indicates growth of 16.9% and 14%, respectively, from the prior-year reported figures.
Omnicom Group Inc. OMC currently has a Zacks Rank #2. OMC came up with a four-quarter average earnings surprise of 9.1%. The stock has risen 18.8% in the past year.
The Zacks Consensus Estimate for OMC’s 2023 sales and EPS indicates growth of 3% and 6.9%, respectively, from the prior-year reported figures.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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
Omnicom Group Inc. (OMC) : Free Stock Analysis Report
SPS Commerce, Inc. (SPSC) : Free Stock Analysis Report
SPX Technologies, Inc. (SPXC) : Free Stock Analysis Report
Jacobs Solutions Inc. (J) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.