11 Best Mid-Cap Value Stocks to Buy According to Analysts

2. KBR Inc. (NYSE:KBR)

Fwd. P/E: 13.1

Potential Upside: 40%

Number of Hedge Fund Holders: 56

KBR Inc. (NYSE:KBR) provides science, technology, and engineering solutions to governments and corporations worldwide. The company operates across multiple sectors, including aerospace, defense, industrial, and intelligence.

With its expertise in delivering complex solutions, KBR Inc. (NYSE:KBR) is well-positioned to benefit from rising government spending on defense and infrastructure, along with the increasing demand for technological advancements across industries. The company boasts a portfolio of over 85 innovative, sustainable, and proprietary process technologies, allowing it to provide differentiated solutions. Its strategy focuses on serving high-growth end markets such as global security, sustainability, and digitalization. Additionally, KBR has a diversified customer base, with more than 60% of its adjusted EBITDA coming from non-U.S. government clients.

For fiscal year 2024, KBR Inc. (NYSE:KBR) reported $7.7 billion in revenue, reflecting 11% year-over-year growth, and an EBITDA of $870 million, maintaining a margin above 11%. Looking ahead to 2025, the company aims to expand revenue by 15%, targeting a range of $8.7-$9.1 billion. It also projects an 11% increase in adjusted EBITDA and a 15% rise in EPS compared to the prior year. In terms of cash flow, KBR generated $385 million in free cash flow (FCF) in 2024 and expects to achieve a robust FCF of $450-$485 million in 2025.

KBR Inc. (NYSE:KBR) holds a consensus Buy rating, with all analysts covering the stock recommending a Buy, according to CNN.com data. The consensus one-year median price target stands at $70, implying a potential upside of 40%.