Jacobs Engineering Group Inc. JEC recently proclaimed that it will provide project management services for EDF Energy’s Hinkley Point C nuclear power station project. The undisclosed value deal would strengthen Jacobs’ commercial bond with EDF Energy and drive its organic growth trajectory as well.
The aforementioned project of EDF Energy calls for the construction of a new power generation plant that would boost U.K.’s pocket-friendly, low carbon electricity supply in the near term. The newly-constructed Hinkley Point C nuclear power plant would support the country’s prospective future energy programs.
The plant would have a capability of generating roughly 3,200 megawatts of electricity, with secure and low content of carbon, for the next 60 years. The power plant is estimated to provide electricity to almost five million households in the U.K. As per the contract, Jacobs would be providing its premium project management services for both civil as well as construction work of the project.
Share Price and Zacks Rank
Share price of the company was $50.27 per share as of Sep 19, 2016. We expect the announcement to raise investors’ confidence in the stock.
Jacobs currently carries a Zacks Rank #3 (Hold). The company remains on track to boost its financials via new contracts, improved backlogs, greater operational efficiency and increased innovations. However, headwinds like strong U.S. dollar, robust industry competition and dismal pricing environment in the global mining and energy market raise concerns.
Stocks to Consider
Some better-ranked stocks within the industry include Willdan Group, Inc. WLDN, Argan, Inc. AGX and CRH plc CRH. While Willdan Group currently hold a Zacks Rank #2 (Buy), both Argan and CRH sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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