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 up 0.5%. By the end of trading, KBR rose 45 cents (1.4%) to $31.96 on light volume. Throughout the day, 880,132 shares of KBR exchanged hands as compared to its average daily volume of 1.4 million shares. The stock ranged in a price between $31.58-$32.12 after having opened the day at $31.59 as compared to the previous trading day's close of $31.51. Other companies within the Diversified Services industry that increased today were: AeroCentury Corporation ( ACY), up 11.7%, Bright Horizons Family Solutions ( BFAM), up 10.1%, WageWorks ( WAGE), up 8%, and VirtualScopics ( VSCP), up 7%.
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KBR, Inc. operates as an engineering, construction, and services company worldwide. KBR has a market cap of $4.61 billion and is part of the services sector. The company has a P/E ratio of 32.2, above the S&P 500 P/E ratio of 17.7. Shares are up 5.3% year to date as of the close of trading on Wednesday. Currently there are seven analysts that rate KBR a buy, no analysts rate it a sell, and five 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 negative front, American Learning ( ALRN), down 17.4%, SuperMedia ( SPMD), down 9.7%, Fortune Industries ( FFI), down 8.7%, and Ambow Education ( AMBO), down 6.5%, were all laggards within the diversified services industry with SAIC ( SAI) 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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