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With a recent "Buy" rating initiated by Standpoint, continued growth in revenue and earnings, and the anticipation of a large infrastructure plan by the new US Administration, Jacobs Engineering (NYSE:JEC) looks like a buy at this time.

Standpoint Coverage Initiated

On Monday, Standpoint came out with an initial coverage rating of "Buy" for Jacobs Engineering. The company is a provider of technical, professional, and construction services. This is an infrastructure play that could do well in the coming year.

Fundamentals

With decent fundamentals, the stock is currently under-priced as long as recent earnings and revenue growth targets are obtained. Analysts are expecting revenue growth of 17% this year and earnings growth of 10% compared to last year. With the quarterly earnings growth at 20% and the price/earnings ratio of the stock near 14, some appreciation is expected.

Obama's Infrastructure Plan

President-elect Obama is planning a large stimulus package as quickly as his new administration is able to obtain the required votes. The package is expected to be between $675 and $775 billion with much of the money going to infrastructure projects which will lead to new job opportunities for many Americans and new contracts for many of the construction plays.

The Trade

With the stock currently trading 3% higher on a day when the markets are moving upward in a stable fashion, I would begin to build a position and finish the position if there is a break above $53.10 a share. Work with a tight stop as a break below $43.85 is a negative sign technically.

Disclosure: no positions

Source: Time to Buy Jacobs Engineering