I’ve got another safe, solid company for you this week. It’s exactly the type of stock investors need right now.

It’s a global infrastructure and defense company… at a time when defense spending is ramping up. Germany has already announced 100 billion euros in new spending.

Guess who’s going to be in line for those contracts?

But what gets me most excited is the number of boxes it checks in my Growth-Value-Income (GVI) system.

Plus, it’s up 26% over the past six months… with low volatility. Just what investors should be looking for.

Get all the details on the stock – including its ticker – in my latest Stock of the Week video.

Click the image below to watch it.

Note: Want more of my in-depth research and recommendations to take action on? Then click here to learn more about my GVI Investor research service. You’ll see just how my strategy has beaten the markets by 580% over the past five years… and get details on three stocks that could be big winners in any investor’s portfolio. Just go here.

Transcript

Hi, Manward family. It’s me, Alpesh Patel, the hedge fund manager who’s going to give you my Stock of the Week.

Now, you know with these, it’s to give you a snippet, a bit of an insight into what my GVI Investor subscribers get, my full-blown research that they get. This is just a bit of a tip-of-the-iceberg snippet.

So what’s my Stock of the Week, in summary? It’s a company called KBR Inc. (KBR). You may well have heard of it. KBR, Inc, formally Kellogg, Brown and Root.

Now, I’ll tell you what’s got me excited about this one. Well, first of all, look at what it does. Technology-integrated engineering, procurement, construction delivery and maintenance services. Now, it might sound a little bit interesting. Well, they’ve got customers in 75 countries. In this economic environment, you really need to be diversified across countries.

They’ve generated $7.3 billion in revenues last year, and I want the resilience of a big company.

The government solutions… This is where it gets interesting. The government solutions segment offers life cycle support solutions to defense – we’re going to need a lot more of that – intelligence, space, aviation and other programs and missions for military and other government agencies in the U.S., the U.K. and Australia.

Guess who’s going to be getting a lot of orders?

And even before all of that, even before all of that, the numbers were looking good. So even if things just continue on a trend – which I don’t think will happen, I think they’ll increase rapidly – things were already looking good.

When I look at the financials, yeah, 2019… stock price doubled. 2020… flat. 2021… up 50%. So far this year… up 12% already.

But that’s not really what gets me excited…

What gets me excited is, on my own value-growth-income rating… 7. So as long as it’s 7, 8, 9, I like it, which is based on the profitability of the company, the share price of the company – so the valuation – the revenue growth of the company, the cash flows, momentum…

Now, these are all factors that are important because we know from historic research that they impact future share price performance. We look at the balance sheet, the cash flow statement, profit and loss account, and that’s what gives us that.

Cash return on capital invested… 6.6%. Not one of the highest, but I think it’s going to increase significantly. It’s positive, which is good. They’re generating cash on the capital that they have.

Already up 26% over the last six months, which, given what’s happening in the rest of the markets, guess what? We want that direction of travel, don’t we? Good outperform.

Not very volatile as a stock, despite some of those big returns, and in this environment, again, I want to steer away from volatility, tactically, obviously, because there’s enough out there already.

And I want companies which are winning on valuation, revenue growth, dividend yields, and tactically, yeah, I want more defense companies once they tick those other boxes.

This is where the research my team does comes in. We have our strategy and we have our tactics.

So the strategy is always value, growth, income, cash flow, consistency of outperforms on the market, momentum.

And then tactically, we can look at sectors like defense. We can look at volatility. We can look at valuation. And when we look at some of those other bigger figures, like I said… on a quality measure, return on equity… no issues there. Cash return on capital invested… no issues there. Dividends… great.

Guess what the world wants more of? Dividends.

Then one or two things… a little bit concerned about turnover, but actually I think that’s going to boost, because look, the Germans alone are going to be spending over 100 billion euros on defense. Guess what KBR is going to do? They’re going to get out there. They’re probably already out there, looking to win those contracts.

And then you’ve got things like pre-tax profitability expectations. You’ve got yes, borrowing increasing, but well within manageable parameters. And I look at capital expenditure… not a worry. Total assets… good, holding firm. Profitable company.

It’s ticking a lot of boxes. No company ever ticks every single box perfectly. But this one, ticking a lot of boxes, one of my Stocks of the Week. And as I said, if you like what you’re hearing and you want to see a lot more of this kind of analysis, my GVI Investor is where you want to be. [Click here to find out how to get access!]

Thanks very much, all.