KBR Stock Analysis: Buy, Sell, or Hold?
KBR - KBR, Inc.
$38.05
0.53 (1.41%)
▲
5d:
+1.39%
30d:
-6.12%
90d:
-5.35%
BUY
HIGH Confidence
Analysis Updated: Apr 2, 2026 12:00 AM ET
Earnings: May 05, 2026
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Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: KBR appears deeply undervalued. Market expects -3.7% annual earnings decline despite 52% recent earnings growth. Contrarian opportunity at discount to historical valuation.
✅ BUY SIGNAL: KBR appears deeply undervalued. Market expects -3.7% annual earnings decline despite 52% recent earnings growth. Contrarian opportunity at discount to historical valuation.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$55.40
Based on 5.3% avg growth
INTRINSIC VALUE TODAY
$34.40
Trading above fair value
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 10.0x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: KBR is currently trading at $38.05, which is considered slightly low relative to its 30-day fair value range of $36.71 to $40.78. From a valuation perspective, the stock is trading at a discount (Forward PE: 8.9) compared to its historical average (10.0). Remarkably, the market is currently pricing in an annual earnings decline of 3.7% over the next few years. This pessimistic expectation contrasts with the company's recent 52.4% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, KBR is in a downtrend. The price is approaching resistance at $38.70. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: KBR has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $53.22 (+39.9%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, KBR is in a downtrend. The price is approaching resistance at $38.70. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: KBR has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $53.22 (+39.9%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
SLIGHTLY LOW
Fair Price Range
$36.71 -
$40.78
Company Quality Score
62/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
90.5%
All Signals
- BULLISH: Price oversold vs 30-day range
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 39.9% below Wall St target ($53.22)
Fair Price Analysis
30-Day Fair Range
$36.71 -
$40.78
Current vs Fair Value
SLIGHTLY LOW
Support & Resistance Levels
Support Level
$35.62
Resistance Level
$38.70
Current Trend
Downtrend
Technical data as of
Apr 2, 2026
Fundamental Context
Forward P/E (Next Year Est.)
8.89
Wall Street Target
$53.22
(+39.9%)
Revenue Growth (YoY)
-10.6%
Earnings Growth (YoY)
52.4%
Profit Margin
5.3%
Valuation Discount vs History
-3.7% cheaper
PE vs Historical
8.9 vs 10.0
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-3.7%
(market-implied from PE analysis)
1-Year Target
$36.64
(-4%)
2-Year Target
$35.29
(-7%)
3-Year Target
$33.98
(-11%)
3-Yr Target (if PE normalizes)
(PE: 9→10)
$38.22
(+0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 20.6, Growth: 6.6%)
$106.71
(+180%)
Base:
(SPY PE: 8.9, Growth: 6.6%)
$46.12
(+21%)
Bear:
(PE: 7.6, Growth: 6.6%)
$39.20
(+3%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (11x PE), but valuation improves significantly next year (9x PE) as earnings recover.
Trailing PE: 10.68 | Current EPS (TTM): $3.49
Bull Case
$50.40
(+33%)
Analyst growth 22.9%, PE expands to 11.8
Base Case
$45.82
(+21%)
Market implied 22.9%, PE stable at 10.7
Bear Case
$25.36
(-33%)
Severe decline -20.0%, PE contracts to 9.1
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 8.9 to 10.0
Stabilization Target:
$42.80
(+12.5%)
PE Expansion Potential:
+12.5%
Share & Embed Analysis
Last updated: April 03, 2026 12:53 PM ET
Data refreshes hourly during market hours. Next update: 1:53 PM
Data refreshes hourly during market hours. Next update: 1:53 PM
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Technical Signals Check
Is KBR showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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