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Are Investors Undervaluing KBR Inc. (KBR) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is KBR Inc. (KBR - Free Report) . KBR is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 12.60, while its industry has an average P/E of 14.67. Over the past year, KBR's Forward P/E has been as high as 16.12 and as low as 11.05, with a median of 13.10.
Investors should also recognize that KBR has a P/B ratio of 1.73. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2. Over the past 12 months, KBR's P/B has been as high as 3.44 and as low as 1.37, with a median of 1.86.
Finally, our model also underscores that KBR has a P/CF ratio of 5.07. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. KBR's P/CF compares to its industry's average P/CF of 13.93. Within the past 12 months, KBR's P/CF has been as high as 149.38 and as low as 3.80, with a median of 5.16.
These are only a few of the key metrics included in KBR Inc.'s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, KBR looks like an impressive value stock at the moment.
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Are Investors Undervaluing KBR Inc. (KBR) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is KBR Inc. (KBR - Free Report) . KBR is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 12.60, while its industry has an average P/E of 14.67. Over the past year, KBR's Forward P/E has been as high as 16.12 and as low as 11.05, with a median of 13.10.
Investors should also recognize that KBR has a P/B ratio of 1.73. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2. Over the past 12 months, KBR's P/B has been as high as 3.44 and as low as 1.37, with a median of 1.86.
Finally, our model also underscores that KBR has a P/CF ratio of 5.07. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. KBR's P/CF compares to its industry's average P/CF of 13.93. Within the past 12 months, KBR's P/CF has been as high as 149.38 and as low as 3.80, with a median of 5.16.
These are only a few of the key metrics included in KBR Inc.'s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, KBR looks like an impressive value stock at the moment.