Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, engineering and construction company KBR (NYSE: KBR ) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.
With that in mind, let's take a closer look at KBR's business, and see what CAPS investors are saying about the stock right now.
KBR facts
|
Headquarters (founded)
|
Houston, Texas (1901)
|
|
Market Cap
|
$2.5 billion
|
|
Industry
|
Construction & Engineering
|
|
TTM Revenue
|
$10.5 billion
|
|
Management
|
CEO William Utt (since March 2006)
Interim CFO Charles Schneider (since March 2008)
|
|
Return on Equity (average last two years)
|
11.1%
|
|
Competitors
|
Fluor (NYSE: FLR )
Chicago Bridge & Iron (NYSE: CBI )
|
|
CAPS members bullish on KBR also bullish on
|
General Electric (NYSE: GE )
Freeport-McMoRan Copper & Gold (NYSE: FCX )
|
|
CAPS members bearish on KBR also bearish on
|
Boeing (NYSE: BA )
Halliburton (NYSE: HAL )
|
Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, fully 85 of the 92 All-Star members who have rated KBR -- some 92% -- believe the stock will outperform the S&P 500 going forward. These bulls include MintCoin and tenmiles, both of whom are ranked in the top 1% of our community.
Three days ago, MintCoin had this to say of KBR: "Global infrastructure at a P/E of 10 and down 20% on the index. Easy add since demand is there and it has smart management."
A pitch from tenmiles last month agrees, breaking down the stock's seemingly bargain-like valuation:
Long term value play-debt free with a $1 billion in cash representing roughly 60% of current market capitalization. Large business backlog with signficant domestic government and infrastructure components. Likely technical support in the low-mid teens. $15/share should be cheap longer term for new investors, although forced hedge fund liquidations in the near term make it anybody's guess over the next couple of quarters.
What do you think about KBR, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.
RSS Headlines
Fool UK