Broker Recommendation: Jacobs

*One Stock Before the Bell*

*Jacobs Solutions Inc (NYSE: J)*
$118.65 (-1.18% YTD)

Jacobs provides technical, consulting, and construction services. 35% of FY22 revenue comes from the *Infrastructure market*; while operations in the *National Security (20%), Energy & Envmt (17%), and Space (5%) markets gives the firm a diverse portfolio of recurring revenue that will provide stability under different economic conditions*. Jacobs was selected last year by *Singapore's PUB to construct the Changi NEWater Factory 3 (CNF3)*, expected to be completed in 2024. It is also *NASA's largest services contractor.*

*Q4 EPS and revenue* surged by 13.92% and 8.21% YoY respectively. Recent contract wins should provide *earnings visibility*, most notably a *$3.9B contract with NASA that will extend thru 2032*. Jacobs is undervalued at a *blended forward P/E ratio* of 15.4x, a *14% discount* to its 2Y average P/E.