KBR Hits a New 52-Week High - Analyst Blog

By
A A A

KBR, Inc. ( KBR ) hit a new 52-week high on May 15, with a price of $32.82, beating its previous high of $32.65 attained on March 28, 2013. Total number of shares traded on that date was 2,197,411 as compared to 3-month average trade volume of 1,292,950. KBR shares are currently trading at $32.80 as of closing on May 15, reflecting a year-to-date return of 4.3%.

Shares of this leading global engineering, construction and services company have been constantly demonstrating an upward trend for the last one month. This movement, however, is subject to a cyclical trend in prices which can be observed over the last one-year period.

Factors to consider

KBR recently reported first quarter 2013 earnings of 59 cents a share, beating the Zacks Consensus Estimate of 47 cents by 28.6%. However, quarterly earnings were down 3.3% year over year. Profits in the last reported quarter were impacted by projects that the company is executing since the past quarter. The company has a positive earnings growth expectation. In the trailing four quarters, KBR also reported an average earnings surprise of 56.85%.

The company recently received a number of new orders. These include a contract from the London Mayor's Office for Policing and Crime to provide facilities management integrator services to the Metropolitan Police Service; and a turnaround services contract for the pyrolysis gasoline (pygas) unit on the US Gulf Coast by a chemical unit in Australia for a road and rail project. With this steady inflow of new orders, the company is expected to report a growth in revenue and margins in the long term.

The company's current valuations also look attractive; it has a forward PE ratio of 11.84 compared to 15.30 for the S&P 500. This makes the stock under priced at current level. KBR currently has a market cap of $4.71 billion.

Other Stock to Consider

KBR currently has Zacks Rank #3 (Hold). Other stocks from the same sector that look promising include Michael Baker Corporation ( BKR ) with a Zacks Rank #1 (Strong Buy), while Harris & Harris Group, Inc. ( TINY ) and Quanta Services, Inc. ( PWR ) have Zacks Rank # 2 (Buy) each.



BAKER (MICHAEL) (BKR): Free Stock Analysis Report

KBR INC (KBR): Free Stock Analysis Report

QUANTA SERVICES (PWR): Free Stock Analysis Report

HARRIS & HARRIS (TINY): Get Free Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: BKR , KBR , PWR , TINY

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

91,252,153
  • $13.78 ▼ 4.31%
68,133,496
  • $12.93 ▲ 6.77%
57,268,074
  • $46.13 ▲ 2.47%
43,432,023
  • $105.22 ▲ 0.37%
40,880,685
  • $13.46 ▲ 8.90%
40,712,405
  • $98.62 ▲ 0.82%
39,776,976
  • $16.72 ▲ 0.72%
34,688,871
  • $11.16 ▲ 3.05%
As of 10/24/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com