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

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 lower today making it today's featured Diversified Services laggard. The industry as a whole closed the day down 0.4%. By the end of trading, KBR fell 42 cents (-1.5%) to $26.77 on average volume. Throughout the day, 1.3 million shares of KBR exchanged hands as compared to its average daily volume of 1.5 million shares. The stock ranged in price between $26.75-$27.23 after having opened the day at $26.84 as compared to the previous trading day's close of $27.19. Other companies within the Diversified Services industry that declined today were: Cambium Learning Group ( ABCD), down 15.6%, AECOM Technology Corporation ( ACM), down 13.3%, VirtualScopics ( VSCP), down 10.3%, and eLong ( LONG), down 9.8%.
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KBR, Inc. operates as an engineering, construction, and services company worldwide. KBR has a market cap of $3.98 billion and is part of the services sector. The company has a P/E ratio of 19.7, above the S&P 500 P/E ratio of 17.7. Shares are down 2.4% year to date as of the close of trading on Monday. 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 hold. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

On the positive front, China HGS Real Estate ( HGSH), up 26.1%, Pointer Telocation ( PNTR), up 11.5%, EnviroStar ( EVI), up 9.2%, and Magal Security Systems ( MAGS), up 8.8%, were all gainers within the diversified services industry with Fortune Brands Home & Security ( FBHS) being today's featured diversified services industry leader.

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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