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Are Investors Undervaluing KBR Inc. (KBR) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 stock to keep an eye on is KBR Inc. (KBR - Free Report) . KBR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 11.59 right now. For comparison, its industry sports an average P/E of 12.99. Over the past year, KBR's Forward P/E has been as high as 13.82 and as low as 8.27, with a median of 11.98.

Another valuation metric that we should highlight is KBR's P/B ratio of 1.61. 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 1.83. Within the past 52 weeks, KBR's P/B has been as high as 1.87 and as low as 1.19, with a median of 1.56.

Finally, our model also underscores that KBR has a P/CF ratio of 8.14. 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 current P/CF looks attractive when compared to its industry's average P/CF of 14.06. KBR's P/CF has been as high as 8.15 and as low as 3.46, with a median of 4.92, all within the past year.

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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