Thomas Cloud, Jr.'s  Instablog

KBR, Inc. operates as an engineering, construction, and services company supporting the energy, petrochemicals, government services, and industrial and civil infrastructure sectors worldwide. If you believe, like me, that oil is at least not going too much lower from where it is now then KBR stands to continue to profit. And continue really is the keyword.

I mean, heck if you like me, you probably just assumed every business was suffering this year. Not so. KBR made more money in the first quarter of 2009 than they did in 2008! "KBR&n... me a job", you say.  

Let's break KBR down a little bit and see how it stacks up.

Fundamentals

Not so good with the free cash flow generation and growth. However they do have efficient management of working capital and they also operate well under pressure by having a positive track record of beating EPS estimates. Their operating income to relative to market value, balance sheet valuation, and recent purchases from insiders looks strong.

Technically

KBR just crossed above its 200 day moving average.

Analyst Opinions

Broadpoint AmTech analyst Will Gabrielski raised his profit estimate for KBR, upgraded the engineering and construction firm to "Buy" from "Neutral" and raised his price target to $21 from $13. KBR closed 5/28 at $18.33.

Against the Competition

The return on equity for KBR is 22.77% against the construction and engineering average of 10.81%. Additionally the P/E is 10.15 against the industry average of 13.4. I moved my clients into this stock when it was $14.63.

Disclosure: Long KBR