Willbros (NYSE:WG) is an energy-focused engineering and construction firm that has considerably underperformed its peers. The underperformance has resulted in P/E multiple contraction. Since the weak performance, management has implemented plans and strategic initiatives to turn their businesses around. If their strategy works, WG could yield much higher earnings than the Street is forecasting. If margin expansion does not improve, then downside is limited. Given the early signs of a turnaround, I believe WG will deliver improved margins going forward and the stock could trade in $19-$21 sometime in 2015.
WG has four main businesses consisting of Oil & Gas, Utilities, Professional Services & Canada.
Oil & Gas:
WG's O&G segment provides a full range of...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|