Buy This Oversold Stock’s Reversal Now

by Sam Collins | June 28, 2013 1:00 am

KBR Inc. (KBR[1]) — This company has risen to become one of the six major players in U.S. power generation construction and engineering with about 15%-20% of the market. Its focus is gas-generated power.

Earnings estimates are $2.65 for 2013, $3.15 for 2014, and $3.25 for 2015. A Credit Suisse analyst following the stock expects KBR to benefit from a shift to higher-margin gas-monetization business. And new air emissions regulations should add immeasurably to growth. The median consensus target price is $40.

In early May, KBR broke from an eight-month consolidation, jumping from $32 to over $36 in just two weeks. Profit-taking and general market weakness resulted in a pullback to just below its breakout point. But it reversed and closed at $32.56 on Thursday, above its 50-day moving average.

MACD is oversold, so traders should buy KBR at the market with a trading target of $38. Longer-term investors could find this stock to be a cornerstone investment in the development of new natural gas fields.

06 28 13 kbr 300x190 Buy This Oversold Stock's Reversal Now
Click to Enlarge
chart key 300x84 Buy This Oversold Stock's Reversal Now[2]

Endnotes:
  1. KBR: http://studio-5.financialcontent.com/investplace/quote?Symbol=KBR
  2. [Image]: http://investorplace.com/wp-content/uploads/2013/05/chart-key.gif

Source URL: http://investorplace.com/2013/06/trade-of-the-day-kbr-inc-kbr/
Short URL: http://invstplc.com/1bamG76