Jacobs Secures Program Role in Pediatric Megaproject, Stock Up

Jacobs Solutions Inc. J has been appointed as the program manager for a hospital project in Dallas, TX. This project is a joint venture between Children’s Health and the University of Texas Southwestern Medical Center.

As one of the largest pediatric healthcare developments in the nation, the project is expected to significantly enhance Jacobs’ healthcare infrastructure portfolio and positively impact its stock performance.

Shares of Jacobs gained 1.3% yesterday.

Comprehensive Understanding of Jacobs’ New Project

In addition to adding operating rooms and increasing patient capacity by 38%, the new facility will house Dallas' largest Level IV Neonatal Intensive Care Unit. Jacobs will offer project management, on-site construction and inspection advice services for the new campus by drawing on ideas from comparable international program management experience, which includes the delivery of 50 academic research centers and 15 children's hospital campuses.

Construction, which began in late 2024, will have 4.5 million square feet of space. The campus will have almost 20 acres of green space, with a park, walking trails and an open plaza.

Essential healthcare infrastructure and services are critical for community well-being. Jacobs' role as program manager for the new Dallas hospital project will be vital in creating a state-of-the-art facility for Children's Health and UT Southwestern Medical Center. This partnership allows Jacobs to leverage its extensive experience in project management, complex program delivery and healthcare facility planning to ensure the successful development of this groundbreaking hospital, which will serve as a vital asset for the region.

Jacobs’ Focus on Healthcare Infrastructure Development

Jacobs' involvement as the program manager for the new Dallas hospital project is crucial for this joint venture, which will significantly expand bed capacity and services to meet the growing needs of the Dallas-Fort Worth region.

The Dallas hospital project is just one example of Jacobs' contribution to healthcare and life sciences infrastructure. The company's expertise is being applied to other significant projects worldwide, including Merck's oncology product facility. It’s a new $1 billion oncology product facility in Delaware, which is designed to manufacture drugs such as KEYTRUDA.

Jacobs’ Backlog Strengths Support Growth Trend

Jacobs’ efficient project execution has increased the demand for its consulting services in various sectors, including infrastructure, water, environment, space, broadband, cybersecurity and life sciences. The company’s ongoing contract wins are a testimony to the fact.

Its fiscal third-quarter end backlog increased 14% year over year to $22.69 billion, underpinned by strong project wins. The book-to-bill ratio was 1.2x in the trailing 12-month period, highlighting robust demand and future revenue stability.

J Share Price Performance

Jacobs’ stock has gained 13% year to date compared with the Zacks Technology Services industry’s 19.8% growth. Despite the ongoing global market uncertainties, the company is expected to continue benefiting from strong trends in infrastructure modernization, energy transition and national security in the upcoming period.

J’s Zacks Rank & Key Picks

Jacobs currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Zacks Business-Services sector are APi Group Corporation APG, AppLovin Corporation APP and Cipher Mining inc.CIFR.

APi Group presently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 4.3%, on average. APi stock has rallied 48% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for APi Group’s 2025 sales and earnings per share (EPS) indicates growth of 9.4% and 15.4%, respectively, from the year-ago period’s levels.

AppLovin sports a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 22.4%, on average. AppLovin stock has jumped 44.3% year to date.

The Zacks Consensus Estimate for AppLovin’s 2025 sales and EPS indicates growth of 16.7% and 97.6%, respectively, from the prior-year levels.

Cipher Mining carries a Zacks Rank of 2 (Buy) at present. The company delivered a trailing four-quarter earnings negative surprise of 16.2%, on average. Cipher Mining stock has gained 1.8% year to date.

The Zacks Consensus Estimate for Cipher Mining’s 2025 sales indicates growth of 77.9% and EPS indicates a fall of 128.6% from the prior-year levels.

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This article originally published on Zacks Investment Research (zacks.com).

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