4-Star Stocks Poised to Pop: KBR

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Based on the aggregated intelligence of the 135,000-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.

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

$2.89 billion

Industry

Construction and engineering

TTM Revenue

$12.17 billion

Management

President/CEO William Utt (since 2006)
CFO Kevin DeNicola (since 2008)

Return on Equity (average, last three years)

9.6%

Dividend Yield

1.1%

Competitors

Foster Wheeler (Nasdaq: FWLT)
Chicago Bridge & Iron

CAPS members bullish on KBR also bullish on

General Electric (NYSE: GE)
Apple (Nasdaq: AAPL)

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, 247 of the 252 All-Star members who have rated KBR -- some 98% -- believe the stock will outperform the S&P 500 going forward. These bulls include Drew2142 and Wazzdown, both of whom are ranked in the top 10% of our community.

Last month, Drew2142 brought KBR's fantastic financial position to our community's attention:

Look at how much cash they have. Oh, and how much debt they don't. Something tells me that's probably a good position to be in for the future.

In an earlier pitch from February, Wazzdown constructs a more balanced look at KBR:

KBR still rules in major US Government overseas contracts to build/operate camps. And, they continue to whip once mighty DynCorp's butt on big jobs like LOGCAP. Biggest competitor at moment is PAE, though [Lockheed Martin (NYSE: LMT)] may be looking to sell off PAE which wasn't in [Lockheed's] range of core competencies anyhow. KBR's major problem, according to credible hall way gossip, is danger of kick backs to foreign governments, and its less than sterling contract execution.

What do you think about KBR, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Closed for 15 months – opening 10 days only! Get notified ahead of time as our expert portfolio manager invests $1 MILLION in the best opportunities from across The Motley Fool’s premium investment services. This is the first open since August 2008, by invitation only. Enter email below.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Chicago Bridge is a Motley Fool Global Gains pick. Apple is a Stock Advisor selection. The Fool's disclosure policy always gets a perfect score.

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