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4-Star Stocks Poised to Pop: KBR

Based on the aggregated intelligence of 145,000-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 (1901)

Market Cap

$3.3 billion

Industry

Construction and engineering

Trailing-12-Month Revenue

$12.4 billion

Management

CEO William Utt (since 2006)
CFO Susan Carter (since 2009)

Return on Equity (Average, Past 3 Years)

11.9%

Dividend Yield

1.0%

Cash/Debt

$1 billion / $0

Competitors

Foster Wheeler (Nasdaq: FWLT  )
Fluor (NYSE: FLR  )
Jacobs Engineering (NYSE: JEC  )

CAPS Members Bullish on KBR Also Bullish on

Johnson & Johnson (NYSE: JNJ  )

CAPS Members Bearish on KBR Also Bearish on

Halliburton (NYSE: HAL  )
Lockheed Martin (NYSE: LMT  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 95% of the 607 members who have rated KBR believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars ParrotRedWorm and mrindependent, both of whom are ranked in the top 10% of our community.

Last month, ParrotRedWorm summed up the KBR bull case in a straightforward manner: "No debt, plenty of cash and picking up work."

In a pitch from last week, mrindependent constructed a more detailed take on the stock. Here's an excerpt:

The company has a diverse base of customers including international and national oil and gas companies, independent refiners, petrochemical producers, fertilizer producers, and domestic and foreign governments. The backlog is solid. Expected 12/10 earnings are $1.67 per share. … The company has [$1] billion in net cash, which amounts to $6.30 per share. Subtracting net cash from the current share price leaves an adjusted share price of $13.70, which is just eight times expected 2010 earnings. In addition, the company sports a 1% dividend yield. This stock is a safe holding with substantial upside.

What do you think about KBR, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!  

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Johnson & Johnson is a Motley Fool Income Investor pick. The Fool's disclosure policy always gets a perfect score.


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Related Tickers

5/25/2012 4:02 PM
KBR $26.16 Down -0.29 -1.10%
KBR, Inc. CAPS Rating: ****
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