Stephen Weiss, Founder, Short Hills Capital Partners Jacobs Engineering Group Inc. JEC-N BUY Jun 30, 2023

They help build the infrastructure, but then they leave. He prefers to own the companies that build the assets with JEC, but then collect the cashflows from the infrastructure project over the next 20-40 years. If he were going to choose one, it would be WSP, a higher quality player than JEC.

An infrastructure company and will benefit from the US infrastructure bill. (Analysts’ price target is $160.38)

Washington has passed two infrastructure bill, meaning a ton of spending. So how do you play this? Jacobs is a major player in construction and engineering, not sexy and boring, but they lead in this space and can be lucrative in the coming year. Sure, government infra spending can take time and Jacobs shares fell today, which makes it an opportunity. From 2019-2021, they boasted strong, steady revenue. That's why shares rose, though it's been in a trading range in the past year. Share are up 31% over three years. The CEO is looking ahead and sees acceleration in 2023. Be patient with infrastructure spending. jacobs has a lot of overseas exposure and has been hurt by the strong USD. 2023 projected sales and earnings are 6% if the USD remains at these levels, but 10% if the USD relaxes. The latest numbers saw light a backlog, due to currency fluctuations, but the CEO says that the huge federal government spending is starting to work its way through. Trades at only 16x 2023 earnings. Will perform well even in the face of inflation.

(A Top Pick Dec 16/21, Down 9%) Is now Jacobs Solutions. Trades at 18-19x earnings. Deeply involved in the US infrastructure spend, the $1 trillion infra bill. 95% of that spend is in Jacobs' wheelhouse. Well-run and supports a PE around 19x.

(A Top Pick May 03/22, Down 18%)

Unsure why stock price down - business is still strong.
Engineering & infrastructure business solid.
Will continue to hold.
Expecting large growth going forward.
Business growing faster than the market.

Infrastructure Bill of late 2021 money is only trickling out now

A general contractor that oversees the construction of a project and will directly benefit from the bill. Their new digital platform will help speed and accuracy of projects. Shares are barely up for the year, so this is an opportunity. There's a lot of room to run.