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 up 0.3%. By the end of trading, KBR fell 48 cents (-1.7%) to $27.21 on heavy volume. Throughout the day, 2.7 million shares of KBR exchanged hands as compared to its average daily volume of 1.5 million shares. The stock ranged in price between $26.87-$27.54 after having opened the day at $27.37 as compared to the previous trading day's close of $27.69. Other companies within the Diversified Services industry that declined today were: Universal Technical Institute ( UTI), down 28.1%, CAI International ( CAP), down 11.1%, Genetic Technologies ( GENE), down 10.8%, and School Specialty ( SCHS), down 10.7%.
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KBR, Inc. operates as an engineering, construction, and services company worldwide. KBR has a market cap of $4.13 billion and is part of the services sector. The company has a P/E ratio of 20.4, above the S&P 500 P/E ratio of 17.7. Shares are down 0.6% year to date as of the close of trading on Tuesday. Currently there are nine 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 deteriorating net income, disappointing return on equity and weak operating cash flow.

On the positive front, SuperMedia ( SPMD), up 20.5%, Performant Financial ( PFMT), up 12.3%, Amrep Corporation ( AXR), up 11.2%, and RLJ Entertainment ( RLJE), up 8.3%, were all gainers within the diversified services industry with Moody's Corporation ( MCO) 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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