Yahoo Finance Jacobs (J) Led Consortium Secures $1M SMART Grant From UKRI
Jacobs Solutions Inc. J, in collaboration with industry and academic organizations, secured funding from the U.K. government to develop an innovative water turbine. The development aims to enhance the feasibility and potential of tidal range power projects in the U.K.
Supported by the $1-million U.K. Research and Innovation Fund (UKRI) SMART grant, Jacobs is undertaking industrial research in collaboration with Severn Estuary Tidal Bar Limited. This initiative involves partnerships with Cardiff University, Liverpool John Moores University and the Tidal Range Alliance, a segment of the British Hydro Association (BHA).
Leveraging its industrial research, J aims to enhance an economically and environmentally sensitive turbine. This technology is designed to empower potential developers of tidal range power projects, tapping into the reliable and renewable energy generated by daily tides. With its expertise in scientific, engineering and program management capabilities, Jacobs is strategically positioned to drive the optimization of this turbine and support the development of renewable energy resources and contribute to climate response initiatives.
The grant, complemented by additional investment from the consortium, is allocated for advancing the Very Low Head turbine (VLHT). This includes activities such as optimization and testing, computational fluid dynamics modeling, establishing a large-scale test rig and manufacturing a fully operational prototype turbine. These efforts are centered at Jacobs' Technology & Innovation Center in Warrington, U.K.
The VLHT will address challenges encountered by various U.K. tidal range schemes. These hurdles include the imperative to lower costs, enhance turbine performance for bi-directional generation and minimize environmental impacts. The technology will open avenues for capturing additional benefits, such as short-duration energy storage and providing protection from rising sea levels for coastal communities and inter-tidal habitats.
Price Performance
In the past year, shares of Jacobs have gained 10.3% compared with the industry’s 25.9% rise. Although the company has underperformed the industry, infrastructure modernization, the shift toward sustainable energy, national security imperatives and the potential for a super-cycle in global supply-chain investments are expected to boost its performance in the upcoming periods.
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Jacobs has been witnessing a surge in demand for its consulting services across diverse sectors, encompassing infrastructure, water management, environmental solutions, space exploration, broadband, cybersecurity and life sciences. A testament to this success is the robust backlog level, which stood at $28.9 billion at the end of the third quarter of fiscal 2023. This marks a 2.9% increase from the previous year’s levels.
Zacks Rank & Key Picks
Jacobs currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the Zacks Business Services sector are TriNet Group, Inc. TNET, DocuSign, Inc. DOCU and SPX Technologies, Inc. SPXC.
TriNet currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. TNET delivered a four-quarter average earnings surprise of 77.4%. The company’s shares have risen 62% in the past year.
The Zacks Consensus Estimate for TNET’s 2023 sales indicates a decline of 2.7%, but earnings per share (EPS) suggests a rise of 4%, respectively, from the prior-year reported figures.
DocuSign currently flaunts a Zacks Rank of #2 (Buy). DOCU has a four-quarter average earnings surprise of 27.1%. The stock has declined 8.6% in the past year.
The Zacks Consensus Estimate for DOCU’s 2024 sales and EPS indicates growth of 8.6% and 29.1%, respectively, from the prior-year reported figures.
SPX Technologies currently sports a Zacks Rank of #2. SPXC has a trailing four-quarter earnings surprise of 28% on average. Shares of the company have increased 23.9% in the past year.
The Zacks Consensus Estimate for SPXC’s fiscal 2023 sales and EPS indicates a rise of 20% and 38.7%, respectively, from the year-ago reported levels.
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