One of the latest signs that engineering companies are recovering from the recession is simply the following: JPMorgan analysts upgraded Jacobs Engineering Group (NYSE:JEC), one of the few publicly traded engineering companies. This positive analysis prompted the stock to rise 3.3 percent, to $45.68 during yesterday’s afternoon trading.
According to the Businessweek article, the JPMorgan analyst lifted his rating on the stock to
“Overweight” from “Neutral,” suggesting Jacobs’ margins should stay stronger than most of its peers, despite a heavily competitive industry. He raised his earnings forecast for this year and next, citing his expectation of improving construction demand and a belief that Jacobs should see its margins hit their worst point within the next few quarters. Levine also noted the company’s strong balance sheet should allow it to pursue acquisitions. Recent partnerships should also position the company for growth in new markets, he said.
Such news is promising in what has been an otherwise chaotic and unpredictable period for engineers. We can only hope that this positive analysis is the first in a series of many to follow.
Has your company recovered from the recession?