KBR, Inc. KBR has received a contract for KBR Weatherly's Nitric Acid technology from Kemerovo Azot JSC. The company will provide engineering design and proprietary equipment for Kemerovo Azot's plant in Kemerovo, Russia. Markedly, this is the first project in Russia to be built using technology from KBR Weatherly, which has a prestigious history of serving the fertilizer industry with more than 250 installations worldwide.
Per the deal, KBR is responsible for technology licensing and basic engineering design, as well as providing proprietary equipment for the Kemerovo Azot project. This plant has a capacity to process 500 tons of nitric acid per day and is targeted to be operational by 2021. Notably, nitric acid will be used for the production of ammonium nitrate, one of the major nitrogen fertilizers.
KBR bought Weatherly in first-quarter 2016, and since then it has been strengthening KBR's foothold in the fertilizer technologies and life cycle services offerings platform. Weatherly also added market-leading ammonia solutions to KBR's portfolio.
KBR has a diversified business portfolio, which helps combat cyclicality associated with any single market. The company's backlog level of $13.5 billion (as of Jun 30, 2018) highlights its underlying strength. Recent Contract Wins
In August, KBR's government services business, KBRwyle, received a $71-million task order from Defense Health Agency. The contact was awarded via Navy's Space and Naval Warfare Systems Center Atlantic vehicle.
In the last reported quarter, KBR clinched some prestigious awards in its Government Services and Hydrocarbons Services segment. These include a $133-million task order from the U.S. Army to provide technical and engineering services to the PATRIOT missile system, and $900 million IDIQ contract for providing solutions under the Department of Defense's Joint Test and Evaluation Program. Under Hydrocarbon Services, KBR received a multi-year contract to provide engineering, procurement and construction management services to a fortune 100 chemicals manufacturer in the United States and Mexico. Share Price Performance
Shares KBR, a Zacks Rank #1 (Strong Buy) company, have gained 19.5% in the past six months, outperforming its industry
's average growth of 8.6%. Earnings estimates for 2018 and 2019 have also moved upward by 3.6% and 3.8%, respectively, over the past 60 days, reflecting analysts' optimism over the stock's future earnings potential.
Other Stocks to Consider
Other top-ranked stocks in the sector include Comfort Systems USA, Inc. FIX , Gates Industrial Corporation plc GTES and Jacobs Engineering Group Inc. JEC . While Comfort Systems and Gates Industrial sport a Zacks Rank #1, Jacobs carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Comfort Systems' earnings are expected to increase 56.3% in 2018.
Gates Industrial's 2018 earnings are expected to increase 42.2%.
Jacobs surpassed earnings estimates in each of the trailing four quarters, resulting in an average positive surprise of 15.4%.
Wall Street's Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It's a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Comfort Systems USA, Inc. (FIX): Free Stock Analysis Report Jacobs Engineering Group Inc. (JEC): Free Stock Analysis Report KBR, Inc. (KBR): Free Stock Analysis Report Gates Industrial Corporation PLC (GTES): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research