Nov 23, 2018

Data Overview Summary

52 Week High-Low $82.24 - $55.21 Jacobs reported fourth-quarter fiscal 2018 results, wherein earnings topped analysts’
20 Day Average Volume 1,685,905
expectation by 7.4% but revenues lagged the same by 2.5%. Nonetheless, earnings
and revenues increased by a significant 34% and 56%, respectively, driven by healthy
Beta 1.41
segmental businesses, accelerated CH2M cost savings along with strong operational
Market Cap 9.25 B execution. Notably, backlog at the end of fiscal 2018 was $27.3 billion, increasing 38%
Dividend / Div Yld $0.60 / 0.92% year over year. Meanwhile, its decision to offload the ECR business unit is also
Industry Engineering - R and D Services
encouraging, as it is focusing more on higher-margin growth businesses, namely
ATEN and BIAF. Improved segmental performances, solid backlog, the CH2M
Industry Rank 173 / 257 (Bottom 33%)
acquisition and efforts to focus on high-value business will likely improve Jacobs’
Current Ratio 1.45 near-term results. Shares of Jacobs have outperformed the industry on a year-to-date
Debt/Capital 26.48% basis. Earnings estimates for fiscal 2019 have also been displaying an upward trend.
Net Margin 1.19%

Price/Book (P/B) 1.55 Elements of the Zacks Rank

Price/Cash Flow (P/CF) 15.24
Agreement Estimate Revisions (60 days)
Earnings Yield 8.10%

Debt/Equity 0.36
100% 50% 50% 0%
Value Score
P/E (F1) 12.36
Q1 (Current Qtr) Q2 (Next Qtr) F1 (Current Year) F2 (Next Year)
P/E (F1) Rel to Industry -2.34
Revisions: 2 Revisions: 2 Revisions: 2 Revisions: 0
PEG Ratio 0.96 Up: 0 Down: 2 Up: 1 Down: 1 Up: 1 Down: 1 Up: 0 Down: 0

P/S (F1) 0.62

P/S (TTM) 0.62 Magnitude Consensus Estimate Trend (60 days)

P/CFO 15.24

P/CFO Rel to Industry NA

EV/EBITDA Annual 20.04

Growth Score 60 30 7 Current 60 30 7 Current 60 30 7 Current 60 30 7 Current

Days Days Days Days Days Days Days Days Days Days Days Days
Proj. EPS Growth (F1/F0) 18.04%
Q1 -6.09% Q2 -0.78% F1 +0.57% F2 +4.68%
Hist. EPS Growth (Q0/Q-1) 1.29%

Qtr CFO Growth 36.52

Upside Zacks Consensus Estimate vs. Most Accurate Estimate
2 Yr CFO Growth -23.12

Return on Equity (ROE) 10.39%

(NI - CFO) / Total Assets NA

Asset Turnover 1.19

Most Accurate: 1.10 Most Accurate: 1.29 Most Accurate: 5.28 Most Accurate: 5.73
Zacks Consensus: 1.08 Zacks Consensus: 1.27 Zacks Consensus: 5.28 Zacks Consensus: 5.37
Momentum Score
Q1 1.77% Q2 1.02% F1 -0.03% F2 6.74%
1 week Volume change 16.40%

1 week Price Cng Rel to Industry -3.97%

Surprise Reported Earnings History
(F1) EPS Est 1 week change -0.10%

(F1) EPS Est 4 week change 0.96%

(F1) EPS Est 12 week change 0.58%

(Q1) EPS Est 1 week change 0.87%

Reported: 1.31 Reported: 1.35 Reported: 1.00 Reported: 0.77 Average 4 Qtr
Surprise
Estimate: 1.22 Estimate: 1.19 Estimate: 0.88 Estimate: 0.67
Q End 09/18 Q End 06/18 Q End 03/18 Q End 12/17

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 The data on the front page and all the charts in the report represent market data as of 11/21/18, while the report's text is as of
11/22/2018

Overview
California-based Jacobs Engineering Group Inc. (JEC) is one of
the leading providers of professional, technical and construction
services to industrial, commercial and governmental clients.

The company offers services under three global lines of business:

Aerospace, Technology, Environmental and Nuclear or ATEN

(29.2% of total revenues in fiscal 2018) serves global automotive,
aerospace, telecommunications, defense, and nuclear clients as well
as the intelligence community of the United States.

Energy, Chemicals and Resources or ECR (29.5%) serves clients

of the energy, mining and resources sectors.

Buildings, Infrastructure and Advanced Facilities or BIAF

(41.3%) serves clients of broad sectors like water, transportation,
building and semiconductors.

On Oct 21, 2018, Jacobs announced that the company has agreed to
offload its ECR business unit to Australia’s WorleyParsons Ltd., as it
intends to focus more on “highest-margin growth businesses”.

The deal, which is expected to close in the first half of calendar 2019,
is valued at $3.3 billion. Jacobs will receive $2.6 billion in cash and around $700 million worth of shares that equals to about 11% stake
in WorleyParsons.

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 Reasons To Buy:
Stellar Performance: Year to date, Jacobs’ shares have broadly outperformed the Improved segmental
industry it belongs to. The price performance is backed by an impressive earnings performances, solid
surprise history. The company surpassed earnings estimates in the trailing four backlog, the CH2M
quarters, resulting in average of 12.4%. Meanwhile, earnings estimates for fiscal 2019 acquisition and efforts to
have increased 0.4% over the past seven days. focus on high-value
business will likely improve
Not only the company’s results exceeded analysts’ expectations, Jacobs registered Jacobs’ near-term results
stellar growth in fiscal 2018. Adjusted earnings came in at $4.47 per share, reflecting an
increase of 38% year over year. Revenues were $15 billion during the year, increasing
49.5% from fiscal 2017. Adjusted operating margin expanded 60 basis points (bps) over
the year. Elevated construction spending in the United States and Trump’s impetus to boost infrastructure spending have been
triggering demand for Jacob’s state-of-the-art construction, and engineering services since the past few quarters.

Jacobs is benefiting major government customers across the Department of Defense, Department of Energy, intelligence community
and NASA. Jacobs derived 23% of the fiscal 2018 revenues, directly or indirectly, from agencies of the U.S. federal government.
Meanwhile, within its commercial markets, the 5G wireless build-out continues to provide a robust opportunity. Importantly, the
company’s ATEN business is executing well and is positioned to deliver double digit increase in profits on a year-over-year basis in
fiscal 2019. These positives are likely to continue to drive Jacobs’ bottom-line in the upcoming quarters.

Strong Backlog: Efficient project execution has been one of the main characteristics that is driving Jacobs’ performance since the
past few quarters. The company’s ongoing contract wins are a testimony to the fact. In the last few months, Jacobs secured several
contracts from renowned institutions and public-sector agencies like the ENCINA Chemicals, LLC, Sasol Group Technology, Shell
Oil Company, Chevron Products Company, the U.S. Army, Equate Petrochemical Company, Exxon Mobil Corporation,
TransCanada Corporation, Sellafield Ltd, Saudi Aramco, Suncor Energy, Sipchem Lubrizol, Kraton Corporation and Codelco. Such
lucrative deals are expected to escalate the company's revenues in the upcoming quarters. Jacobs believes that new contract wins
will continue to boost its competency going forward.

Backlog at the end of fiscal 2018 was $27.3 billion, increasing 38% year over year on a reported basis and 2% on a pro-forma basis.
Higher-margin ATEN and BIAF line of businesses continue to see a robust pipeline of government and infrastructure-spending
programs.

The company expects gross margin backlog to grow more than 150 bps upon completion of the sale of ECR business, mainly due to
the higher-margin mix of the remaining ATEN and BIAF portfolio.

Accretive Acquisitions & Divestiture: Jacobs is reinforcing business on the back of meaningful business acquisitions. In sync with
this, in August 2017, the company acquired a prominent data analytics and cyber security company — Blue Canopy — in a bid to
expand its federal civilian information technology services’ business. Furthermore, the company has successfully acquired
(December 2017) CH2M HILL Companies Ltd. (CH2M) for approximately $2.9 billion. Through the CH2M buyout, Jacobs foresees
to accrue cost synergies worth nearly $175 million, even after ECR sale, on exiting fiscal 2019.

Meanwhile, in October 2018, Jacobs agreed to offload its ECR business unit to Australia’s WorleyParsons Ltd., as it intends to
focus more on “highest-margin growth businesses”.

Reasons To Sell:
Competitive Pressure: Low-entry barriers in engineering, architectural, consulting and Jacobs' business remains
designing market segments have escalated threats of market rivalry for Jacobs. Poor exposed to stiff industry
competency or business inefficiencies in the long run might diminish the market share rivalry and currency
and profitability of Jacobs from such business fragments. Moreover, the maintenance headwinds.
and construction sites of the company are subject to certain risks related to safety
issues. Any adverse happenings at these sites might generate severe financial losses
for the company.

Currency Headwind: Jacobs intends to underpin its business through increased business internationalization. In fiscal 2018,
approximately 36% of its revenues were earned from clients outside the United States. However, constant appreciation of the U.S.
dollar with respect to other major currencies such as Euro and Yen might continue to hurt its overseas market revenues as well as
profitability. This is because a strengthening dollar raises the prices of the company’s construction services and subsequently,
renders them less competent in markets with relatively lower exchange rates.

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 Last Earnings Report
Jacobs' (JEC) Q4 Earnings Beat Estimates, Revenues Miss Quarter Ending 09/2018

Jacobs Engineering Group Inc. reported fourth-quarter fiscal 2018 (ended Sep 28, 2018) Report Date Nov 20, 2018
results, wherein earnings surpassed the Zacks Consensus Estimate by 7.4% but revenues Sales Surprise NA
lagged the same by 2.5%. EPS Surprise 7.38%
Quarterly EPS 1.31
The company’s adjusted earnings in the reported quarter were $1.31 per share, increasing
Annual EPS (TTM) 4.43
34% from the year-ago figure of 98 cents. The upsurge was driven by accelerated CH2M
cost savings along with strong operational execution.

Segmental Performance Drives Revenues

In the quarter under review, Jacobs’ revenues totaled $4,142.6 million, reflecting healthy growth of 56% from the year-ago quarter (up
7% on a pro-forma basis). The improvement was driven by healthy segmental businesses.

Backlog at the end of fiscal 2018 was $27.3 billion, increasing 38% year over year.

The company reports revenues in three segments — Aerospace, Technology, Environmental and Nuclear; Buildings, Infrastructure and
Advanced Facilities; and Energy, Chemicals and Resources. The segmental information is briefly discussed below:

Revenues from the Aerospace, Technology, Environmental and Nuclear segment were $1,299.1 million, increasing 100.3% year over
year. It represented 31.4% of the total revenues in the reported quarter. Backlog at the end of the quarter was roughly $8.86 billion, up
39.3% year over year.

Revenues from the Buildings, Infrastructure and Advanced Facilities segment totaled $1,687.6 million, increasing 67.6% year over year.
The segment accounted for 40.7% of its revenues in the quarter under review. Backlog at the end of the quarter was roughly $11.38
billion, up 67.6% year over year.

Revenues from the Energy, Chemicals and Resources segment totaled $1,155.9 million, increasing 15.8% year over year. The
segment contributed 27.9% to the reported quarterly revenues. Backlog at the end of the quarter was roughly $7.07 billion, up 6.4%
year over year.

Margins Profile

In the quarter under review, Jacobs’ cost of contracts surged 53.8% year over year to $3,351.2 million and represented 80.9% of
revenues compared with 82.1% in the year-ago quarter. Adjusted gross margin increased 130 bps year over year to 19.2%. Adjusted
selling, general and administrative expenses flared up 56% year over year to $516 million and represented 12.5% of revenues, flat year
over year.

Adjusted operating margin expanded 140 bps to 6.8% in the quarter.

Balance Sheet and Cash Flow

At fiscal 2018-end, Jacobs’ cash and cash equivalents were $793.4 million, up from $774.2 million at the end of fiscal 2017. Long-term
debt balance decreased to $2.15 billion from $2.35 billion at the end of fiscal 2017.

Fiscal 2018 Highlights

Adjusted earnings came in at $4.47 per share, reflecting an increase of 38% year over year. Revenues were $15 billion during the fiscal
year, increasing 49.5% from fiscal 2017.

ECR Divestiture

On Oct 21, Jacobs agreed to offload its Energy, Chemicals and Resources (“ECR”) business unit to Australia’s WorleyParsons Ltd.,
as it intends to focus more on “highest-margin growth businesses”.

The deal, which is expected to close in the first half of calendar 2019, is valued at $3.3 billion. Jacobs will receive $2.6 billion in cash
and around $700 million worth of shares that equals to about 11% stake in WorleyParsons.

Fiscal 2019 View

Buoyed by stellar performance in fiscal 2018, Jacobs expects fiscal 2019 adjusted EBITDA between $920 million and $1 billion

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 (excluding ECR).

The company expects fiscal 2019 adjusted EPS in the range of $5.00-$5.40 (assuming full-year ECR results). Consistent with its annual
guidance, Jacobs expects adjusted EPS in the range of 85 cents to $1.15, including ECR, in the first quarter of fiscal 2019.

Recent News
Jacobs to Serve NASA for an Additional Year in Hampton - Nov 21, 2018

Jacobs Engineering Group Inc. has received a one-year contract extension from NASA for the Langley Research Center in Hampton,
VA. This Center Maintenance, Operations and Engineering contract is estimated at $46 million, bringing the total contract value to $214
million.

Per the deal, Jacobs will provide facility-related asset management, along with operations and engineering support services. The tenure
of the extended contract will likely begin in October and is extended through September 2019.

Jacobs to Divest ECR Business for $3.3B – Oct 21

Jacobs Engineering Group Inc. announced that it has agreed to offload its Energy, Chemicals and Resources (“ECR”) business unit to
Australia’s WorleyParsons Ltd., as it intends to focus more on “highest-margin growth businesses”.

Jacobs Secures $250M Contracts For Its AETN Business – Oct 17

Jacobs Engineering Group Inc. announced that it has won more than $250M for its Aerospace, Technology, Environmental and Nuclear
Unit to spurs growth in Telecommunications business.

Jacobs and London Transport Museum Launch to Create Shape Your City – Oct 16

Jacobs Engineering Group Inc. announced that in conjunction with the London Transport Museum and other partners will help bring the
U.K.'s Year of Engineering 2018 to life with a new interactive Future Engineers gallery.

Jacobs to Design MHF for Sirius Minerals in Teesside – Oct 11

Jacobs Engineering Group Inc. announced that it has won an engineering, procurement and construction (“EPC”) contract from Sirius
Minerals PLC, for its new materials handling facility (“MHF”) in Teesside, U.K.

Jacobs Secures 12-Month Work Extension at Hanford Site – Oct 10

Jacobs Engineering Group Inc. announced that it has received a 12-month contract extension from the Department of Energy (“DOE”)
for environmental remediation along the Columbia River and some parts of the Hanford site.

Jacobs Wins Two Four-Year Framework Contracts from DSRL – Oct 2

Jacobs Engineering Group Inc. announced that it has won two four-year framework contracts for Aerospace, Technology,
Environmental and Nuclear or ATEN business to provide design and engineering services, as well as safety case production and peer
review services. The contract was awarded by Dounreay Site Remediation Limited (DSRL), a site licensing company.

Jacobs to Provide Technical Advice to Rail Projects Victoria – Sep 28

acobs Engineering Group Inc., announced that in conjunction with its Aurecon Jacobs Mott MacDonald Joint Venture (AJM JV), is to
serve Rail Projects Victoria as a technical advisor. The rail authority has appointed Jacobs to look after the Victorian Rail Infrastructure
Program (VRIP).

Jacobs, Turner & Townsend Win $320M UK Defence Contract – Sep 21

Jacobs Engineering Group Inc., together with Turner & Townsend announced that it has secured a contract with the United Kingdom
Ministry of Defence for the U.K.'s Defence Equipment and Support or DE&S program. The contract is valued up to $320 million.

Jacobs, Turner & Townsend Win $320M UK Defence Contract - Sep 20, 2018

Jacobs Engineering Group Inc., together with Turner & Townsend has secured a contract with the United Kingdom Ministry of Defence
for the U.K.'s Defence Equipment and Support or DE&S program. The contract is valued up to $320 million. Per the contract, Jacobs
and Turner & Townsend will manage projects for DE&S, part of the country's ministry of defence. Jacobs will aid in temporary project
management and provide logistics support to improve procurement. DE&S provides a wide range of projects to buy and support
equipment and services that the U.K. Armed Forces need to operate efficiently.

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 Jacobs Wins Contract to Transform Edinburgh City Center - Sep 19, 2018

Jacobs Engineering Group announced that it has secured a contract in the major transformation program of the Edinburgh City Center,
Scotland. Per the deal, the company will lead the City of Edinburgh Transformation Program to renovate Scottish capital's streets,
public spaces and amenities, to make the city more convenient for residents as well as visitors. The multi-million-dollar investment
program will improve community, economic and cultural life of one the most iconic cities in the world.

Jacobs to Implement Benin Power Compact - Sep 11, 2018

Jacobs Engineering Group, through its joint venture Jacobs Engineering S.A. (JESA), has been awarded a four-year contract from the
Millennium Challenge Account-Bénin II (MCA-Benin II) for the implementation of the Benin Power Compact. This move will strengthen
the national electricity infrastructure of the country when completed in 2022. Jacobs will provide engineering, as well as project and
construction management, for four photovoltaic solar power plants, new transmission lines, new substations and a dispatch center.

Jacobs-GHD JV Inks an Inland Rail Program Deal in Australia - Sep 6, 2018

Jacobs Engineering Group Inc., in conjunction with GHD, will carry out feasibility study and environmental impact assessment for an
Inland Rail Program in New South Wales (NSW), Australia. Jacobs-GHD joint venture (“JV”) has been appointed by the Australian Rail
Track Corporation for a 300-kilometer (km)-long greenfield section of the multi-billion-dollar Inland Rail Program. The JV will provide
engineering design and conduct environmental investigation in order to identify the ideal route for the 40- to 60-meter-wide rail corridor
of the project, namely the Narromine to Narrabri (N2N).

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 Industry Analysis Zacks Industry Rank: 173 / 257 (Bottom 33%) Top Peers

Great Lakes Dredge & Dock Corporation (GLDD)

EMCOR Group, Inc. (EME)
North American Construction Group Ltd. (NOA)
Orion Group Holdings, Inc. (ORN)
Granite Construction Incorporated (GVA)
Dycom Industries, Inc. (DY)
MasTec, Inc. (MTZ)
Sterling Construction Company Inc (STRL)

Industry Comparison Engineering - R And D Services | Position in Industry: Industry Peers

4 of 15

JEC X Industry S&P 500 FLR ACM PWR

VGM Score - -
Market Cap 9.25 B 2.61 B 20.30 B 5.86 B 4.93 B 4.97 B
# of Analysts 5 3 14 5 3 6
Dividend Yield 0.92% 0.00% 1.96% 2.02% 0.00% 0.00%

Value Score - -
Cash/Price 0.08 0.13 0.05 0.31 0.17 0.02
EV/EBITDA 20.04 9.81 12.41 7.78 10.56 9.81
PEG Ratio 0.96 1.66 1.68 0.83 2.26 1.54
Price/Book (P/B) 1.55 1.57 3.10 1.83 1.18 1.32
Price/Cash Flow (P/CF) 15.24 9.97 12.98 11.79 7.21 10.60
P/E (F1) 12.36 17.91 17.25 22.57 11.51 12.32
Price/Sales (P/S) 0.62 0.60 2.42 0.30 0.24 0.47
Earnings Yield 8.10% 5.58% 5.79% 4.44% 8.69% 8.12%
Debt/Equity 0.36 0.45 0.67 0.52 0.81 0.25
Cash Flow ($/share) 4.28 1.39 5.82 3.53 4.37 3.21

Growth Score - -
Hist. EPS Growth (3-5 yrs) 1.29% 3.14% 8.12% -11.02% 4.31% 1.96%
Proj. EPS Growth (F1/F0) 18.04% 11.09% 17.77% 13.25% 2.24% 40.10%
Curr. Cash Flow Growth 2.22% 2.86% 9.53% -16.50% -5.75% 19.52%
Hist. Cash Flow Growth (3-5 yrs) 1.58% 1.62% 7.45% -12.63% 16.07% 1.66%
Current Ratio 1.45 1.51 1.29 1.52 1.16 1.86
Debt/Capital 26.48% 30.67% 41.86% 34.26% 44.88% 19.95%
Net Margin 1.19% 4.09% 10.79% 1.21% 0.68% 3.32%
Return on Equity 10.39% 11.15% 17.96% 11.31% 10.16% 8.57%
Sales/Assets 1.19 1.16 0.55 2.10 1.37 1.55
Proj. Sales Growth (F1/F0) 11.02% 0.00% 6.37% -1.69% 3.01% 16.26%

Momentum Score - -
Daily Price Chg 0.25% 0.00% 0.55% 0.63% 2.40% 0.80%
1 Week Price Chg -3.97% 0.00% -0.64% -4.14% 0.67% -1.21%
4 Week Price Chg -13.99% -3.86% 0.13% -7.38% 1.74% 8.11%
12 Week Price Chg -10.13% -12.68% -8.24% -28.52% -6.30% -0.32%
52 Week Price Chg 0.54% -2.78% -0.13% -12.41% -13.97% -7.81%
20 Day Average Volume 1,685,905 17,850 2,691,060 2,232,941 1,414,796 1,510,508
(F1) EPS Est 1 week change -0.10% 0.00% 0.00% 0.00% 0.00% 0.00%
(F1) EPS Est 4 week change 0.96% 0.00% 0.06% -6.00% -8.67% -0.57%
(F1) EPS Est 12 week change 0.58% -0.49% 0.26% -14.43% -8.67% -0.49%
(Q1) EPS Est Mthly Chg 0.87% -4.46% -0.97% -16.72% -21.16% 20.85%

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 Zacks Rank Education
The Zacks Rank is calculated from four primary inputs: Agreement, Magnitude, Upside and Surprise.

Agreement
This is the extent which brokerage analysts are revising their earnings estimates in the same
direction. The greater the percentage of estimates being revised higher, the better the score for this
component.

For example, if there were 10 estimate revisions over the last 60 days, with 8 of those revisions up,
and the other 2 down, then the agreement factor would be 80% positive. If, however, 8 were to the
downside with only 2 of them up, then the agreement factor would be 80% negative. The higher the
percentage of agreement the better.

Magnitude
This is a measure based on the size of the recent change in the current consensus estimates. The
Zacks Rank looks at the magnitude of these changes over the last 60 days.

In the chart to the right, the display shows the consensus estimate from 60-days ago, 30-days ago,
7-days ago, and the most current estimate The difference between the current estimate and the
estimate from 60-days ago is displayed as a percentage. A larger positive percentage increase will
score better on this component.

Upside
This is the difference between the most accurate estimate, as calculated by Zacks, and the
consensus estimate. For example, a stock with a consensus estimate of $1.00, and a most
accurate estimate of $1.05 will have an upside factor of 5%.

This is not an indication of how much a stock will go up or down. Instead, it's a measure of the
difference between these two estimates. This is particularly useful near earnings season as a
positive upside percentage can be used to help predict a future surprise.

Surprise
The Zacks Rank also factors in the last few quarters of earnings surprises. Companies that have
positively surprised in the recent past have a tendency of positively surprising again in the future (or
missing if they recently missed).

A stock with a recent track record of positive surprises will score better on this factor than a stock
with a history of negative surprises. These stocks will have a greater likelihood of positively
surprising again.

Zacks Style Score Education

The Zacks Style Score is as a complementary indicator to the Zacks Rank, giving investors a way to focus
on the best Zacks Rank stocks that best fit their own stock picking preferences.

Academic research has proven that stocks with the best Growth, Value, and Momentum characteristics outperform the market. The
Zacks Style Scores rate stocks on each of these individual styles and assigns a rating of A, B, C, D and F. An A, is better than a B; a B
is better than a C; and so on.

As an investor, you want to buy stocks with the highest probability of success. That means buying stocks with a Zacks Rank #1 or #2,
Strong Buy or Buy, which also has a Style Score of an A or a B.

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 Disclosures
The analysts contributing to this report do not hold any shares of this stock. The EPS and revenue forecasts are the Zacks
Consensus estimates. Additionally, the analysts contributing to this report certify that the views expressed herein accurately reflect the
analysts' personal views as to the subject securities and issuers. Zacks certifies that no part of the analysts compensation was, is, or
will be, directly or indirectly, related to the specific recommendation or views expressed by the analyst in the report. Additional
information on the securities mentioned in this report is available upon request. This report is based on data obtained from sources we
believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. Because of individual objectives, the
report should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed
herein are subject to change. This report is not to be construed as an offer or the solicitation of an offer to buy or sell the securities
herein mentioned. Zacks or its officers, employees or customers may have a position long or short in the securities mentioned and buy
or sell the securities from time to time. Zacks uses the following rating system for the securities it covers which results from a
proprietary quantitative model using trends in earnings estimate revisions. This model is proven most effective for judging the timeliness
of a stock over the next 1 to 3 months. The model assigns each stock a rank from 1 through 5. Zacks Rank 1 = Strong Buy. Zacks Rank
2 = Buy. Zacks Rank 3 = Hold. Zacks Rank 4 = Sell. Zacks Rank 5 = Strong Sell. We also provide a Zacks Industry Rank for each
company which provides an idea of the near-term attractiveness of a company s industry group. We have 264 industry groups in total.
Thus, the Zacks Industry Rank is a number between 1 and 264. In terms of investment attractiveness, the higher the rank the better.
Historically, the top half of the industries has outperformed the general market.

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