KBR, Inc. ( KBR Quick Quote KBR - Free Report) recently entered into an agreement with Mura Technology Limited to offer an innovative advanced plastics recycling process namely — Cat-HTR. Following the announcement, shares of the company moved up 2.4% during trading hours on Jan 14. Per the agreement, KBR will become the exclusive licensing partner for Mura Technology thereby offering studies, basic engineering, technical services, proprietary equipment and modules for the Cat-HTR technology to customers across the world. In this regard, Doug Kelly, KBR president, Technology, stated, “This technology aligns with KBR's commitment to sustainability by reducing lifecycle greenhouse gas emissions and the volume of waste that enters landfills and the environment, while contributing to the growth of the plastic circular economy.” Focus on Technology Services
Earlier, KBR transformed its portfolio from a three-segment business model to a two-segment model, featuring Government Solutions (GS) and Technology Solutions (TS). This transformation simplified KBR’s business and enabled it to move away from high-risk, cyclical and commoditized markets. It also helped the company to progress toward more agile, technology-driven, knowledge-based delivery.
During third-quarter 2020, KBR witnessed a greater number of new bookings and deliveries coupled with high concentration of license mix. Notably, the company witnessed high demand for its technologies across ammonia for food productions, olefins for non-single-use plastics and in refining for product diversification as well as more green solutions to meet stricter environmental standards. We believe that strengthening the Technology Solutions business with its high-end, sustainability-focused industrial sector expertise and client relationships will create exciting synergy opportunities, going forward. Price Performance
Shares of KBR have surged 41.3% in the past six months compared with the
industry’s 56.9% growth. Notably, the company’s operations have been negatively impacted by intense competition, the volatility of commodity prices and uncertain global political and economic conditions. However, increased focus on contract wins, strong project execution and a solid backlog level are likely to help the company, going forward. Zacks Rank & Key Picks
KBR currently carries a Zacks Rank #3 (Hold). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Some better-ranked stocks in the Zacks Construction sector are KB Home ( KBH Quick Quote KBH - Free Report) , PulteGroup, Inc. ( PHM Quick Quote PHM - Free Report) and D.R. Horton, Inc. ( DHI Quick Quote DHI - Free Report) , each sporting a Zacks Rank #1. KB Home has a three-five year earnings per share growth rate of 14%. PulteGroup has a trailing four-quarter earnings surprise of 17.2%, on average. D.R. Horton’s 2021 earnings are expected to rise 25.1%. Zacks Names “Single Best Pick to Double”
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