Long Position on KBR @ $51.50 on 3/4/2022 (Momentum)

KBR, Inc. (KBR) provides scientific, technology, and engineering solutions to governments and commercial customers worldwide. Stockwinners

The company operates through Government Solutions and Sustainable Technology Solutions segments.

The Government Solutions segment offers life-cycle support solutions to defense, intelligence, space, aviation, and other programs and missions for military and other government agencies in the United States, the United Kingdom, and Australia.

Its services cover research and development, advanced prototyping, acquisition support, systems engineering, cyber analytics, space domain awareness, test and evaluation, systems integration and program management, global supply chain management, and operations readiness and support, as well as command, control, communications, computers, intelligence, surveillance, and reconnaissance services. This segment also provides various professional advisory services to deliver high-end systems engineering, systems assurance, and technology to customers across the defense, energy, and critical infrastructure sectors.

The Sustainable Technology Solutions segment holds a portfolio of approximately 70 proprietary process technologies for ammonia/syngas/fertilizers, chemical/petrochemicals, clean refining, and circular process/circular economy solutions.

Shares of KBR are a beneficiary of the infrastructure progrm that became law recently. Shares have formed a "bullish flag" following the company's earnings report.

On February 22nd, KBR reported Quarter December 2021 earnings of $0.69 per share on revenue of $2.5 billion. The consensus earnings estimate was $0.65 per share on revenue of $2.6 billion.  Revenue grew 70.5% on a year-over-year basis.

The company said it expects 2022 earnings of $2.45 to $2.60 per share on revenue of $6.30 billion to $6.80 billion. The previous consensus earnings estimate was $2.46 per share on revenue of $6.82 billion for the year ending December 31, 2022.

Higher share prices are expected.

 

Entry Point: $51.50

Stop Loss: $48.50

Trading Range: $30.27 to $51.55

Target Price: $56.25

Updates

6/7/2022 1:33:29 PM

KBR closed at $52.00

Position closed on 6/7/2022 at price of $52.00 with a 0.97% gain in 95 days.

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