KBR Inc. (KBR): Today's Featured Diversified Services Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

KBR ( KBR) pushed the Diversified Services industry higher today making it today's featured diversified services winner. The industry as a whole closed the day down 0.7%. By the end of trading, KBR rose 49 cents (1.6%) to $31.66 on average volume. Throughout the day, 1.8 million shares of KBR exchanged hands as compared to its average daily volume of 1.4 million shares. The stock ranged in a price between $31.18-$31.84 after having opened the day at $31.21 as compared to the previous trading day's close of $31.17. Other companies within the Diversified Services industry that increased today were: China Yida ( CNYD), up 19%, Corinthian Colleges ( COCO), up 11%, Oxygen Biotherapeutics ( OXBT), up 9.1%, and Harris Interactive ( HPOL), up 6.7%.
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KBR, Inc. operates as an engineering, construction, and services company worldwide. KBR has a market cap of $4.58 billion and is part of the services sector. The company has a P/E ratio of 9.9, equal to the average diversified services industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 11.8% year to date as of the close of trading on Wednesday. Currently there are 10 analysts that rate KBR a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates KBR as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, School Specialty ( SCHS), down 12.7%, Education Management Corporation ( EDMC), down 9.5%, Pointer Telocation ( PNTR), down 7.6%, and SuperMedia ( SPMD), down 7.4%, were all laggards within the diversified services industry with Mercadolibre ( MELI) being today's diversified services industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the diversified services industry could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the diversified services industry could consider ProShares Ultra Short Consumer Sers ( SCC).

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