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Is KBR Inc. (KBR) a Great Value Stock 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is KBR Inc. (KBR - Free Report) . KBR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 13.08 right now. For comparison, its industry sports an average P/E of 14.29. KBR's Forward P/E has been as high as 16.12 and as low as 11.05, with a median of 12.96, all within the past year.

We should also highlight that KBR has a P/B ratio of 1.73. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. KBR's current P/B looks attractive when compared to its industry's average P/B of 1.92. Over the past year, KBR's P/B has been as high as 3.44 and as low as 1.37, with a median of 2.08.

Finally, investors should note that KBR has a P/CF ratio of 5.14. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. KBR's P/CF compares to its industry's average P/CF of 13.42. Over the past 52 weeks, KBR's P/CF has been as high as 149.63 and as low as 3.80, with a median of 5.26.

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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