Trade-Ideas LLC identified

KBR

(

KBR

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified KBR as such a stock due to the following factors:

  • KBR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.2 million.
  • KBR has traded 118,037 shares today.
  • KBR is trading at 3.56 times the normal volume for the stock at this time of day.
  • KBR is trading at a new low 4.17% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on KBR:

KBR, Inc. operates as an engineering, construction, and services company worldwide. The company operates through three segments: Technology and Consulting, Engineering and Construction, and Government Services. The stock currently has a dividend yield of 2.2%. KBR has a PE ratio of 11. Currently there are 2 analysts that rate KBR a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for KBR has been 1.4 million shares per day over the past 30 days. KBR has a market cap of $2.1 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.99 and a short float of 1.6% with 1.89 days to cover. Shares are down 13.6% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates KBR as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and poor profit margins.

Highlights from the ratings report include:

  • KBR's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.24, which illustrates the ability to avoid short-term cash problems.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Construction & Engineering industry and the overall market, KBR INC's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • Net operating cash flow has significantly increased by 80.55% to -$21.00 million when compared to the same quarter last year. Despite an increase in cash flow of 80.55%, KBR INC is still growing at a significantly lower rate than the industry average of 7970.29%.
  • KBR has underperformed the S&P 500 Index, declining 18.00% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The change in net income from the same quarter one year ago has exceeded that of the Construction & Engineering industry average, but is less than that of the S&P 500. The net income has decreased by 4.5% when compared to the same quarter one year ago, dropping from $44.00 million to $42.00 million.

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