Tech World: Jacob Engineering

Jacob Engineering () is a professional services firm that focuses on providing a range of technical, professional and construction services. It provides project services, which include engineering, design, architectural, and similar services; process, scientific, and systems consulting services; operations and maintenance services, and construction services, which include direct-hire construction and construction management services.

It concentrates its services on selected industry groups and markets, including oil and gas exploration, production and refining; programs for various federal governments; pharmaceuticals and biotechnology; chemicals and polymers; buildings, which includes projects in the fields of healthcare and education, as well as civic, governmental and other buildings; infrastructure and technology and manufacturing.

The company recently received a contract from Orange County, in California, to provide construction management services for a new passenger terminal at John Wayne Airport. The company will manage construction for a new 274,000 square-foot terminal that will include six bridge aircraft gates and additional boarding facilities. The project has an estimated construction value of $249 million.

The company also said it received a contract, for up to $19 million over four years, to provide facility integrated management operations support for the National Ignition Facility at the Lawrence Livermore National Laboratory in California.

In addition, Jacobs has received a renewable contract, with a potential for 4 base years and two 1-year options, from the Metropolitan St. Louis Sewer District to provide wastewater planning services through August 2013.

Jacobs Engineering is strong fundamentally with attractive return on equity and great earnings momentum. The latest earnings showed a 48 percent increase in net over the same quarter a year ago, coming in at 68 cents per share.

Technically, the stock is in a long-term uptrend, with the recent pullback creating a nice Elliott Wave-4 buy formation, projecting gains into the $100 per share area over the next 4 to 5 months. Jacobs have a liquid options market with lots of open interest and friendly bid/ask trades. The stock does not offer LEAPS but currently extend out to April of 2008.

Figure 1: Daily Elliott Wave-4 Buy Pattern for Jacob Engineering
(Source: Profit Source)

Happy Trading.

Jeff Neal 
Senior Writer, Options Strategist & Profit Strategies Radio Show Market Correspondent
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