Jacobs Engineering operates within the following sectors: Aerospace & Defense, Automotive & Industrial, Construction (buildings), Chemicals & Basic Resources, Consumer & Forest Products, Infrastructure, Environmental, Oil & Gas (includes refining), Pharma & Biotech, and Ttechnology.
Jacobs also has created markets in the US, Canada, Australia, China, India, Spain, U.K. and various other European countries.
Diversification is an essential part of anyone's portfolio. Conglomerates like Altria Group, Berkshire Hathaway or General Electric are certainly one way to achieve it. But, in order to fully realize the benefits being made abroad, JE could end up being a better play. In order to sustain growth and continue developing, Europe, India and China have been forced to begin with basics such as infrastructure, construction and energy, all of which Jacobs possesses expertise and solutions. As you see these countries become more developed, Jacobs will leverage their solid relationships and credibility in the region to generate new business in other sectors and industries such as Pharma & Biotech, Technology, Industrial, Environmental Programs, and Consumer products.
Instead of attempting to pour money into risky, foreign stocks, Jacobs provides solid American management along with global growth and market exploration and penetration. According to Yahoo! Finance, Jacobs accounting and reporting is in the top 10 percentile in governance, signifying a lower potential risk of financial problems.
Valuation-wise, Jacobs trades at 25x earnings, slightly under the industry average. Additionally, double-digit growth is expected to continue, providing a steady long-term outlook with little volatility.
If you lack diversification, Jacobs fits perfectly in your portfolio.
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