Kratos Defense & Security Stock (NASDAQ: KTOS)

Kratos Defense & Security (NASDAQ:KTOS) Stock, Quote.Headers.trade-ideas

Kratos Defense & Security

Kratos Defense & Security Solutions Inc develops and fields transformative, affordable technology, platforms, and systems. The company has two segments; The Kratos Government Solutions (KGS) segment is comprised of an aggregation of KGS operating segments, including its microwave electronic products, space, training, and cybersecurity, C5ISR/modular systems, turbine technologies, and defense and rocket support services operating segments and The Unmanned Systems segment consists of unmanned aerial, unmanned ground, unmanned seaborne and related command, control, and communications system businesses. The company derives a majority of its revenue from the Kratos Government Solutions segment.

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This Analyst With 86% Accuracy Rate Sees Around 9% Upside In RH - Here Are 5 Stock Picks For Last Week From Wall Street&#39;s Most Accurate Analysts

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Kratos Defense &amp; Security Solutions, Inc. (NASDAQ: KTOS) recently announced that its unit, Technical Directions, Inc. (&#34;TDI&#34;), now offers four classes of its low-cost, high-performance turbojet engines ranging from 30 to 200 pounds of thrust with immediate availability.

Kratos Defense Provides Four Classes of Affordable Turbojet Engines

Momentum investing is all about the idea of following a stock&#39;s recent trend, which can be in either direction.

Are You Looking for a Top Momentum Pick? Why Kratos is a Great Choice

Kratos Defense & Security Solutions, Inc. - Common Stock

Kratos Defense & Security Solutions Inc

Kratos Defense &amp; Security Solutions, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KTOS#NASDAQ">KTOS</a>), a technology company in Defense, National Security and Global Markets, today announced that Kratos Turbine Technologies has successfully completed a ground test campaign of a Cost-Optimized, Limited-Life Turbofan Engine. The engine testing was managed by the Air Force Research Laboratory, Aerospace Systems Directorate, Turbine Engine Division (AFRL/RQT) under the Attritable Cost Optimized Limited Life Engine Technologies (ACOLLET) program. All test plan objectives were achieved including matching pre-test predictions on thrust and fuel efficiency.

Kratos Completes Milestone On Cost Optimized Limited-Life Turbofan Engine; All Test Plan Objectives Were Achieved Including Matching Pre-Test Predictions On Thrust And Fuel Efficiency

U.S. stocks settled higher on Friday, with the S&amp;P 500 and the Nasdaq Composite recording their best week of the year. Both indices also notched gains for the fifth straight day. &nbsp;On a weekly basis, the S&amp;P 500 gained 4%, while the Nasdaq added 5.9%. The Dow has climbed 2.6% last week.
Wall Street analysts make new stock picks on a daily basis. Unfortunately for investors, not all analysts have particularly impressive track records at predicting market movements. Even when it comes to one single stock, analyst ratings and price targets can vary widely, leaving investors confused about which analyst&#8217;s opinion to trust.
Benzinga&#8217;s Analyst Ratings API is a collection of the highest-quality stock ratings curated by the Benzinga news desk via direct partnerships with major sell-side banks. Benzinga displays overnight ratings changes on a daily basis three hours prior to the U.S. equity market opening. Data specialists at investment dashboard provider Toggle.ai recently uncovered that the analyst insights Benzinga Pro subscribers and Benzinga readers regularly receive can successfully be used as trading indicators to outperform the stock market.
Top Analyst Picks: Fortunately, any Benzinga reader can access the latest analyst ratings on the<a href="https://www.benzinga.com/analyst-ratings/analyst-color/22/09/28888638/exclusive-study-finds-benzinga-analyst-ratings-data-yields-market-beating-strategie"> Analyst Stock Ratings</a> page. One of the ways traders can sort through Benzinga&#8217;s extensive database of analyst ratings is by analyst accuracy. Here&#8217;s a look at the most recent stock picks from each of the five most accurate Wall Street analysts, according to Benzinga <a href="https://www.benzinga.com/analyst-stock-ratings">Analyst Stock</a> Ratings.
Analyst: Zachary Fadem
<ul>
<li>Analyst Firm: Wells Fargo</li>
<li>Ratings Accuracy: 86%</li>
<li>Latest Rating: Maintained an Overweight rating on RH (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RH#NYSE">RH</a>) and raised the price target from $325 to $350 on Sept. 13. This analyst sees around 9% increase in the stock.</li>
<li>Recent News: On Sept. 12, RH reported quarterly earnings of $1.69 per share, which beat the analyst consensus estimate of $1.56 per share.</li>
</ul>
Analyst: William Power
<ul>
<li>Analyst Firm: Baird</li>
<li>Ratings Accuracy: 84%</li>
<li>Latest Rating: Maintained an Outperform rating on Axon Enterprise, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AXON#NASDAQ">AXON</a>) and boosted the price target from $360 to $400 on Sept. 10. This analyst sees around 5% upside in the stock.</li>
<li>Recent News: On Aug. 6, Axon Enterprise reported better-than-expected second-quarter financial results and raised its FY24 revenue guidance above estimates.</li>
</ul>
Analyst: Seth Seifman
<ul>
<li>Analyst Firm: JP Morgan</li>
<li>Ratings Accuracy: 84%</li>
<li>Latest Rating: Downgraded rating on Huntington Ingalls Industries, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HII#NYSE">HII</a>) from Overweight to Neutral but raised the price target from $280 to $285 on Sept. 9. This analyst sees around 9% upside in the stock.</li>
<li>Recent News: On Aug. 1, Huntington Ingalls posted upbeat quarterly earnings.</li>
</ul>
Analyst: Chris Kotowksi
<ul>
<li>Analyst Firm: Oppenheimer</li>
<li>Ratings Accuracy: 83%</li>
<li>Latest Rating: Maintained an Outperform rating on Jefferies Financial Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JEF#NYSE">JEF</a>) and boosted the price target from $64 to $66 on Sept. 13. This analyst sees around 13% surge in the stock.</li>
<li>Recent News: Jefferies is expected to release its third quarter financial results on Sept. 25.</li>
</ul>
Analyst: Josh Sullivan
<ul>
<li>Analyst Firm: Benchmark</li>
<li>Ratings Accuracy: 83%</li>
<li>Latest Rating: Reiterated a Buy rating on Kratos Defense &amp; Security Solutions, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KTOS#NASDAQ">KTOS</a>) with a price target of $25 on Sept. 13. This analyst sees around 11% upside in the stock.</li>
<li>Recent News: On Aug. 7, Kratos Defense &amp; Security posted better-than-expected quarterly earnings.</li>
</ul>
Read More: 
<ul>
<li><a href="https://www.benzinga.com/markets/24/09/40860420/jim-cramer-hold-on-to-builders-firstsource-heres-the-problem-with-viking-therapeutics">Jim Cramer: &#8216;Hold On&#8217; To Builders FirstSource, &#8216;Here&#8217;s The Problem&#8217; With Viking Therapeutics</a></li>
</ul>

This Analyst With 86% Accuracy Rate Sees Around 9% Upside In RH - Here Are 5 Stock Picks For Last Week From Wall Street's Most Accurate Analysts

The ground system will enable Thaicom to configure the satellite and ground system in tandem to deliver services to customers on demand optimizing the advanced features of its new software-defined satellite, THAICOM-10.

Contracts

Thaicom Public Company Awards Kratos Multi-Million Dollar Contract For Its End-to-end Ground System

Kratos Defense &amp; Security Solutions, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ktos#NASDAQ">KTOS</a>) recently announced that its unit, Technical Directions, Inc. (&quot;TDI&quot;), now offers four classes of its low-cost, high-performance turbojet engines ranging from 30 to 200 pounds of thrust with immediate availability.
The TDI-J45 30 lb thrust, TDI-J5 75 lb thrust, TDI-J7 100 lb thrust and TDI-J85 200 lb thrust are the four classes of TDI&#39;s turbojet engines that are currently offered. The turbojet engines are suitable for deployment in cruise missiles, loitering munitions systems and other vital defense systems.
<h2>About Kratos&#39; Unmanned Systems Division</h2>
Part of Kratos Defense, Kratos Unmanned Systems Division is a company that develops cutting-edge unmanned systems and technology for a range of defense and security applications. It delivers state-of-the-art solutions in fields like unmanned aerial systems (UAS), unmanned ground vehicles (UGV) and unmanned maritime systems.
The division provides a variety of unmanned systems for both military and commercial use, including robotic systems, autonomous platforms and high-performance drones. Their products enhance operational effectiveness and safety while reducing costs. The division makes investments in research and development to maintain its leadership position in unmanned technology. This involves working on next-generation systems and exploring new applications to meet evolving needs in defense and security.
<h2>What Lies Ahead for KTOS?</h2>
Against the backdrop of the heightening geopolitical uncertainties around the world, several countries have been strengthening their defense arsenal. The demand for military weapons, especially missiles, has increased in the defense industry, with defense players developing new and advanced missiles to meet the rising demand.
The Grand View Research firm projects the global missile market to witness a CAGR of 7.4% over the 2024-2030 period. Growth potential in the missile market should bode well for Kratos Defense, which has a handful of combat-proven missiles in its product portfolio, like Patriot, AN/TPY-2 THAAD, TPQ-53, TPS-77, TPS-78 and SBIRS.
<h2>Opportunities for KTOS&#39; Peers</h2>
Considering the solid growth opportunities offered by the global missile market, other defense primes like Lockheed Martin (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lmt#NYSE">LMT</a>), RTX Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rtx#NYSE">RTX</a>) and Northrop Grumman (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/noc#NYSE">NOC</a>), with a strong presence in this space, should benefit.
Lockheed Martin offers a variety of combat-proven missiles like AGM-158 XR Cruise Missiles, the GMLRS go-to guided missile and ATACMS Advanced Military Rocket Technology, a leading-edge military rocket solution designed for precision and effectiveness in military operations.
LMT boasts a long-term (three to five years) earnings growth rate of 4.7%. The Zacks Consensus Estimate for LMT&#39;s 2024 sales implies an improvement of 5.3% from the previous year&#39;s level.
RTX Corporation is one of the biggest suppliers of combat missiles for the U.S. Army. Its product portfolio includes SM-6 Missile, Tomahawk Cruise Missile, AIM-9X SIDEWINDER Missile, Naval Strike Missile and many more.
RTX boasts a long-term earnings growth rate of 10.4%. The Zacks Consensus Estimate for the company&#39;s 2024 sales indicates year-over-year growth of 7%.
Northrop Grumman manufactures high-speed, long-range strike weapons with deadly capabilities at standoff range. Its portfolio of missiles includes Advanced Anti-Radiation Guided Missile Extended Range, Advanced Anti-Radiation Guided Missile, Advanced Reactive Strike and Stand-In Attack Weapon Missile.
NOC boasts a long-term earnings growth rate of 8.7%. The Zacks Consensus Estimate for the company&#39;s 2024 sales suggests year-over-year growth of 5.4%.
<h2>KTOS Stock Outperforms Industry</h2>
In the past six months, shares of Kratos Defense have risen 26.5% compared with the industry&#39;s average return of 16.7%.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/ed/77724.jpg?v=1867580753" />
Image Source: Zacks Investment Research
<h2>KTOS&#39; Zacks Rank</h2>
Kratos Defense currently carries a Zacks Rank #3 (Hold).
<a href="https://www.zacks.com/stock/news/2335972/kratos-defense-provides-four-classes-of-affordable-turbojet-engines?cid=CS-BENZ-FT-analyst_blog|company_news_corporate_actions-2335972">To read this article on Zacks.com click here.</a>

Benchmark analyst Josh Sullivan reiterates Kratos Defense &amp; Security (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KTOS#NASDAQ">KTOS</a>) with a Buy and maintains $25 price target.

Price Target

Reiteration

Benchmark Reiterates Buy on Kratos Defense & Security, Maintains $25 Price Target

Momentum investing is all about the idea of following a stock&#39;s recent trend, which can be in either direction. In the &#39;long&#39; context, investors will essentially be &quot;buying high, but hoping to sell even higher.&quot; And for investors following this methodology, taking advantage of trends in a stock&#39;s price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Kratos (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ktos#NASDAQ">KTOS</a>), a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It&#39;s also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Kratos currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.
<h2>Set to Beat the Market?</h2>
Let&#39;s discuss some of the components of the Momentum Style Score for KTOS that show why this military contractor shows promise as a solid momentum pick.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For KTOS, shares are up 0.75% over the past week while the Zacks Aerospace - Defense Equipment industry is up 1.45% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 7.71% compares favorably with the industry&#39;s 7.69% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Over the past quarter, shares of Kratos have risen 8.35%, and are up 41.3% in the last year. On the other hand, the S&amp;P 500 has only moved 5.01% and 23.98%, respectively.
Investors should also pay attention to KTOS&#39;s average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. KTOS is currently averaging 954,998 shares for the last 20 days.
<h2>Earnings Outlook</h2>
The Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with KTOS.
Over the past two months, 3 earnings estimates moved higher compared to 1 lower for the full year. These revisions helped boost KTOS&#39;s consensus estimate, increasing from $0.39 to $0.47 in the past 60 days. Looking at the next fiscal year, 3 estimates have moved upwards while there have been 1 downward revision in the same time period.
<h2>Bottom Line</h2>
Given these factors, it shouldn&#39;t be surprising that KTOS is a #2 (Buy) stock and boasts a Momentum Score of B. If you&#39;re looking for a fresh pick that&#39;s set to soar in the near-term, make sure to keep Kratos on your short list.
<a href="https://www.zacks.com/stock/news/2331632/are-you-looking-for-a-top-momentum-pick-why-kratos-ktos-is-a-great-choice?cid=CS-BENZ-FT-tale_of_the_tape|yseop_template_10-2331632">To read this article on Zacks.com click here.</a>

Although U.S. stocks closed higher on Thursday, there were a few notable insider trades.
When insiders purchase shares, it indicates their confidence in the company&#8217;s prospects or that they view the stock as a bargain. Either way, this signals an opportunity to go long on the stock. Insider purchases should not be taken as the only indicator for making an investment or trading decision. At best, it can lend conviction to a buying decision.
Below is a look at a few recent notable insider purchases. For more, check out <a href="https://www.benzinga.com/sec/insider-trades/">Benzinga&#8217;s insider transactions</a> platform.
<h3 class="wp-block-heading">Kratos Defense &amp; Security</h3>
<ul>
<li>The Trade: Kratos Defense &amp; Security Solutions, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KTOS#NASDAQ">KTOS</a>) President and CEO Eric M Demarco <a href="https://www.benzinga.com/quote/KTOS/analyst-ratings">acquired a total of 12,396 shares</a> at an average price of $20.19. To acquire these shares, it cost around $250,254.</li>
<li>What's Happening: On Aug. 7, Kratos Defense &amp; Security posted upbeat quarterly results.</li>
<li>What Kratos Defense &amp; Security Does: Kratos Defense &amp; Security Solutions Inc develops and fields transformative, affordable technology, platforms, and systems.</li>
</ul>
<h3 class="wp-block-heading">Comstock Resources</h3>
<ul>
<li>The Trade: Comstock Resources, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRK#NYSE">CRK</a>) 10% owner Jerral W. Jones acquired a total of 2,945,694 shares at an average price of $10.43. To acquire these shares, it cost around $30.7 million.</li>
<li>What's Happening: On Aug. 15, Piper Sandler analyst Mark Lear downgraded Comstock Resources from Neutral to Underweight and lowered the price target from $8 to $5..</li>
<li>What Comstock Resources Does: Comstock Resources Inc is an independent energy company operating in the Haynesville shale, a natural gas basin located in East Texas and North Louisiana with superior economics and geographical proximity to the Gulf Coast markets.</li>
</ul>
<h3 class="wp-block-heading">nVent Electric</h3>
<ul>
<li>The Trade: nVent Electric plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVT#NYSE">NVT</a>) Director Herbert K Parker <a href="https://www.benzinga.com/sec/insider-trades/">bought a total of 7,566 shares</a> at an average price of $65.71. To acquire these shares, it cost around $497,198.</li>
<li>What's Happening: On Aug. 6, NVent Electric reported worse-than-expected second-quarter sales results.</li>
<li>What nVent Electric Does: nVent Electric PLC is a provider of electrical connection and protection solutions. The company segments include Enclosures, Thermal Management, and Electrical and Fastening Solutions.</li>
</ul>
Read Next:<a href="https://www.benzinga.com/trading-ideas/long-ideas/24/08/40394036/jim-cramer-recommends-buying-clorox-ceo-has-done-remarkable-job"> </a>
<ul>
<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/24/08/40394036/jim-cramer-recommends-buying-clorox-ceo-has-done-remarkable-job">Jim Cramer Recommends Buying Clorox: &#8216;CEO Has Done Remarkable Job&#8217;</a></li>
</ul>

Long Ideas

Insider Trades

Pre-Market Outlook

More Than $30M Bet On This Stock? Check Out These 3 Stocks Insiders Are Buying

WIIM

Kratos Defense & Security shares are trading lower. The company reported Q2 financial results.

Kratos Defense &amp; Security (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KTOS#NASDAQ">KTOS</a>) reported quarterly earnings of $0.14 per share which beat the analyst consensus estimate of $0.08 by 75 percent. This is a 55.56 percent increase over earnings of $0.09 per share from the same period last year. The company reported quarterly sales of $300.100 million which beat the analyst consensus estimate of $276.214 million by 8.65 percent. This is a 16.82 percent increase over sales of $256.900 million the same period last year.

Earnings Beats

Kratos Defense & Security Q2 2024 Adj. EPS $0.14 Beats $0.08 Estimate, Sales $300.100M Beat $276.214M Estimate

Kratos Defense &amp; Security's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KTOS#NYSE">KTOS</a>) short percent of float has risen 13.9% since its last report. The company recently reported that it has 3.13 million shares sold short, which is 2.13% of all regular shares that are available for trading. Based on its trading volume, it would take traders 4.3 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Kratos Defense &amp; Security Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1723060813_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Kratos Defense &amp; Security has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing Kratos Defense &amp; Security's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Kratos Defense &amp; Security's peer group average for short interest as a percentage of float is 5.89%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

(KTOS) - Analyzing Kratos Defense & Security's Short Interest

GE Aerospace (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GE#NYSE">GE</a>) and Oak Ridge National Laboratory have teamed up under a new CRADA to boost supercomputing capabilities, aiming to advance next-generation <a target="_blank" href="https://www.benzinga.com/pressreleases/24/07/n39873885/ge-aerospace-and-u-s-department-of-energy-reach-agreement-to-expand-supercomputing-capability-for-" rel="noreferrer noopener">aircraft engine technologies like Open Fan</a>.
Oak Ridge National Laboratory, home to Frontier—the fastest supercomputer at over a quintillion calculations per second—is renowned for its advanced computing expertise.
Oak Ridge will enhance GE Aerospace&#8217;s ability to handle large simulations, extract data efficiently, leverage AI tools for better result interpretation, and improve physics visualization.
GE Aerospace plans to hire over 900 engineers in 2024 to drive innovation and support both current engine programs and future flight technologies.
The company developed computational fluid dynamics software for Frontier to model the aerodynamic and acoustic performance of its full-scale Open Fan engine.
Mohamed Ali, senior vice president of engineering for GE Aerospace said, &#8220;Supercomputing and access to Frontier is changing the way we design jet engines, allowing us to solve previously impossible problems. We&#8217;re now able to digitally fly components of an Open Fan at full-scale in a simulated environment before the hardware is built.&#8221;
&#8220;Our expanded research collaboration through a new cooperative agreement with Oak Ridge National Laboratory will accelerate our engine design and testing, building confidence that Open Fan architecture is the most promising engine technology to help the aviation industry meet its net zero ambitions.&#8221;
Today, Kratos Defense &amp; Security Solutions, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KTOS#NASDAQ">KTOS</a>) and GE Aerospace have signed a Memorandum of Understanding to develop and produce cost-effective small engines for unmanned <a target="_blank" href="https://www.benzinga.com/pressreleases/24/07/g39877552/ge-aerospace-and-kratos-partner-on-small-affordable-engines" rel="noreferrer noopener">aerial systems and collaborative combat aircraft</a>.
The partnership builds on an existing joint development agreement and includes full-scale engine production.
Last week, GE Aerospace announced plans to invest over $1 billion over the next five years to expand its global Maintenance, Repair, and&nbsp;Overhaul (MRO) <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/39860866/ge-aerospace-commits-1b-to-enhance-global-repair-and-overhaul-facilities" rel="noreferrer noopener">and component repair facilities</a>.
Earlier this month, the company disclosed that it had extended CEO Larry Culp's tenure until the end of 2027, with the option for <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/39597343/steering-the-course-ge-aerospace-keeps-ceo-culp-at-the-helm-through-2027" rel="noreferrer noopener">an additional one-year&nbsp;extension</a>.
GE stock has gained over 80% in the last 12 months. Investors can gain exposure to the stock via IShares U.S. Aerospace &amp; Defense ETF&nbsp;(BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>)&nbsp;and TCW Transform Systems ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NETZ#NYSE">NETZ</a>).
Price Action: GE shares are up 0.51% at $159.94 premarket at the last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Unsplash/ Headway

Equities

iShares Dow Jones US Aerospace & Defense Index Fund

Engine No. 1 ETF Trust Engine No. 1 Transform Climate ETF

NETZ

GE Aerospace Invests In Supercomputing Talent: Plans To Hire 900 Engineers

GE Aerospace (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GE#NYSE">GE</a>) and Kratos Turbine Technologies, a division of Kratos Defense &amp; Security Solutions, Inc., signed a Memorandum of Understanding to partner on the development and production of small affordable engines that could potentially power unmanned aerial systems (UAS), collaborative combat aircraft, and similar applications. The partnership builds on an existing joint development agreement and includes full-scale engine production.
For the last year, GE Aerospace and Kratos have been working together on a small affordable engine. The engine initially was developed and ground tested by Kratos. Under the existing joint agreement, GE Aerospace and Kratos completed additional development efforts and are now conducting tests on the engine. The team plans to continue development on the current engine, which will undergo altitude testing next year at GE Aerospace&#39;s test cell in&nbsp;Evendale, Ohio.
Amy Gowder, President and CEO, Defense &amp; Systems at GE Aerospace said, &quot;Our defense customers have a growing interest in small affordable engines to meet their evolving mission requirements. Our initial collaboration has been very successful, and this agreement furthers our efforts in this new dynamic military segment.&quot;
Eric DeMarco, President &amp; CEO of Kratos Defense &amp; Security Solutions, Inc., said, &quot;Kratos has made significant investments in the development of our family of small, low-cost jet engines for jet powered drones, missiles, and powered munitions that lead in technology and capability. We consider our relationship with GE Aerospace as invaluable based on our expectation and forecast for the potential future production of thousands of turbofan engines for multiple customers.&quot;
Each company brings unique expertise to the partnership.&nbsp;Kratos has more than 20 years of experience in the development and production of small affordable jet engines for UAS, drones, and missiles. GE Aerospace has more than 100 years of experience in the development and scaling up of high-volume production for jet engine programs for a seamless transition from development to production.

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GE Aerospace and Kratos Partner to Develop Small Engines for Military Drones

Kratos Defense &amp; Security's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KTOS#NYSE">KTOS</a>) short percent of float has fallen 10.95% since its last report. The company recently reported that it has 2.74 million shares sold short, which is 1.87% of all regular shares that are available for trading. Based on its trading volume, it would take traders 1.66 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Kratos Defense &amp; Security Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1721233811_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Kratos Defense &amp; Security has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Kratos Defense &amp; Security's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Kratos Defense &amp; Security's peer group average for short interest as a percentage of float is 5.60%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

The Nasdaq 100 closed higher by around 175 points on Wednesday. Investors, meanwhile, focused on some notable insider trades.
When insiders sell shares, it could be a preplanned sale, or could indicate their concern in the company's prospects or that they view the stock as being overpriced. Insider sales should not be taken as the only indicator for making an investment or trading decision. At best, it can lend conviction to a selling decision.
Below is a look at a few recent notable insider sales. For more, check out <a href="https://www.benzinga.com/sec/insider-trades/">Benzinga&#8217;s insider transactions</a> platform.
<h3 class="wp-block-heading">Sprouts Farmers Market</h3>
<ul>
<li>The Trade: Sprouts Farmers Market, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SFM#NASDAQ">SFM</a>) CEO Jack Sinclair <a href="https://www.benzinga.com/sec/insider-trades/">sold a total of 11,428 shares</a> at an average price of $82.84. The insider received around $946,746 from selling those shares.</li>
<li>What's Happening: Sprouts Farmers Market said it will issue financial results for the second quarter, after the closing bell on July 29.</li>
<li>What Sprouts Farmers Market Does: Sprouts Farmers Market Inc offers a unique specialty grocery experience featuring an open layout with fresh produce at the heart of the store.</li>
<li>Benzinga Pro's real-time newsfeed alerted to latest <a href="http://www.benzinga.com/pro/register/?utm_source=BZprocontent070524&amp;t=be2bearmibe3na1">SFM&#8217;s</a><a href="https://pro.benzinga.com/dashboard"> </a><a href="http://www.benzinga.com/pro/register/?utm_source=BZprocontent070524&amp;t=be2bearmibe3na1">news</a></li>
</ul>
<figure class="wp-block-image size-full is-resized"><a href="http://www.benzinga.com/pro/register/?utm_source=BZprocontent070524&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="680" height="742" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/05044919/Screenshot-2024-07-05-at-2.19.12-PM.png" alt="" class="wp-image-420821" style="width:400px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/05044919/Screenshot-2024-07-05-at-2.19.12-PM.png 680w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/05044919/Screenshot-2024-07-05-at-2.19.12-PM-275x300.png 275w" sizes="(max-width: 680px) 100vw, 680px" /></a></figure>
Have a look at our <a href="https://www.benzinga.com/premarket/">premarket coverage</a> here
<h3 class="wp-block-heading">Kratos Defense &amp; Security Solutions</h3>
<ul>
<li>The Trade: Kratos Defense &amp; Security Solutions, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KTOS#NASDAQ">KTOS</a>) EVP and CFO Deanna H Lund s<a href="https://www.benzinga.com/sec/insider-trades/">old a total of 6,000 shares</a> at an average price of $20.00. The insider received around $120,000 from selling those shares.</li>
<li>What's Happening: On June 28, Benchmark analyst Josh Sullivan reiterated Kratos Defense &amp; Security with a Buy and maintained a $25 price target.</li>
<li>What Kratos Defense &amp; Security Solutions Does: Kratos Defense &amp; Security Solutions Inc develops and fields transformative, affordable technology, platforms, and systems.</li>
<li><a href="http://www.benzinga.com/pro/register/?utm_source=BZprocontent070524&amp;t=be2bearmibe3na1">Benzinga Pro's charting tool</a> helped identify the trend in KTOS stock.</li>
</ul>
<figure class="wp-block-image size-full is-resized"><a href="http://www.benzinga.com/pro/register/?utm_source=BZprocontent070524&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="688" height="751" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/05045004/Screenshot-2024-07-05-at-2.19.56-PM.png" alt="" class="wp-image-420822" style="width:466px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/05045004/Screenshot-2024-07-05-at-2.19.56-PM.png 688w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/05045004/Screenshot-2024-07-05-at-2.19.56-PM-275x300.png 275w" sizes="(max-width: 688px) 100vw, 688px" /></a></figure>
<h3 class="wp-block-heading">F5</h3>
<ul>
<li>The Trade: F5, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FFIV#NASDAQ">FFIV</a>) President, CEO and Director Francois Locoh-Donou <a href="https://www.benzinga.com/sec/insider-trades/">sold a total of 1,450 shares</a> at an average price of $171.95. The insider received around $249,328 from selling those shares.</li>
<li>What's Happening: On April 29, F5 posted upbeat quarterly earnings.</li>
<li>What F5 Does: F5 is a market leader in the application delivery controller market. The company sells products for security, application performance, and automation.</li>
<li>Benzinga Pro's signals feature notified of a potential breakout in <a href="http://www.benzinga.com/pro/register/?utm_source=BZprocontent070524&amp;t=be2bearmibe3na1">FFIV&#8217;s</a><a href="https://pro.benzinga.com/dashboard"> shares</a></li>
</ul>
<figure class="wp-block-image size-full is-resized"><a href="http://www.benzinga.com/pro/register/?utm_source=BZprocontent070524&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="656" height="748" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/05045053/Screenshot-2024-07-05-at-2.20.46-PM.png" alt="" class="wp-image-420823" style="width:424px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/05045053/Screenshot-2024-07-05-at-2.20.46-PM.png 656w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/05045053/Screenshot-2024-07-05-at-2.20.46-PM-263x300.png 263w" sizes="(max-width: 656px) 100vw, 656px" /></a></figure>
<h3 class="wp-block-heading">Amazon.com</h3>
<ul>
<li>The Trade: Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) CEO Worldwide Amazon Stores Douglas J Herrington <a href="https://www.benzinga.com/sec/insider-trades/">sold a total of 16,000 shares</a> at an average price of $199.12. The insider received around $3.19 million from selling those shares.</li>
<li>What's Happening: Australia's top-secret intelligence data will be migrated to the cloud under a $2 billion deal with Amazon.com's cloud service Amazon Web Services.</li>
<li>What Amazon Does: Amazon is the leading online retailer and marketplace for third party sellers.</li>
<li>Benzinga Pro's earnings calendar was used to track AMZN&#8217;s <a href="http://www.benzinga.com/pro/register/?utm_source=BZprocontent070524&amp;t=be2bearmibe3na1">upcoming earnings report</a></li>
</ul>
<figure class="wp-block-image size-full is-resized"><a href="http://www.benzinga.com/pro/register/?utm_source=BZprocontent070524&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="666" height="734" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/05045146/Screenshot-2024-07-05-at-2.21.40-PM.png" alt="" class="wp-image-420834" style="width:474px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/05045146/Screenshot-2024-07-05-at-2.21.40-PM.png 666w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/05045146/Screenshot-2024-07-05-at-2.21.40-PM-272x300.png 272w" sizes="(max-width: 666px) 100vw, 666px" /></a></figure>
Check This Out: <a href="https://www.benzinga.com/news/24/07/39617741/top-3-health-care-stocks-that-may-crash-this-quarter">Top 3 Health Care Stocks That May Crash This Quarter</a>

AMZN

FFIV

Amazon, F5 And 2 Other Stocks Insiders Are Selling

BTIG analyst Andre Madrid initiates coverage on Kratos Defense &amp; Security (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KTOS#NASDAQ">KTOS</a>) with a Neutral rating.

Initiation

BTIG Initiates Coverage On Kratos Defense & Security with Neutral Rating

RBC Capital analyst Ken Herbert maintains Kratos Defense &amp; Security (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KTOS#NASDAQ">KTOS</a>) with a Outperform and raises the price target from $23 to $24.

RBC Capital Maintains Outperform on Kratos Defense & Security, Raises Price Target to $24

JP Morgan analyst Seth Seifman maintains Kratos Defense &amp; Security (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KTOS#NASDAQ">KTOS</a>) with a Neutral and raises the price target from $20 to $23.

JP Morgan Maintains Neutral on Kratos Defense & Security, Raises Price Target to $23

JMP Securities analyst Trevor Walsh initiates coverage on Kratos Defense &amp; Security (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KTOS#NASDAQ">KTOS</a>) with a Market Outperform rating and announces Price Target of $27.

JMP Securities Initiates Coverage On Kratos Defense & Security with Market Outperform Rating, Announces Price Target of $27

On CNBC's &#8220;Mad Money Lightning Round,&#8221; Jim Cramer said Recursion Pharmaceuticals, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RXRX#NASDAQ">RXRX</a>) is a &#8220;terrific spec&#8221; and he recommended <a href="https://www.benzinga.com/news/24/05/38802247/recursion-pharmaceuticals-stock-surges-10-as-nvidia-powered-supercomputer-completion-sparks-investor">buying the same</a>.
On May 9, Recursion Pharmaceuticals reported better-than-expected first-quarter financial results.
Corning Incorporated (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLW#NYSE">GLW</a>) has &#8220;not been able to generate the kind of return that I've wanted,&#8221; Cramer said. &#8220;I would not be a buyer all the way up here.&#8221;
See Also: <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/05/38962846/jim-cramer-this-industrial-stock-is-doing-very-well-heres-his-take-on-palantir">Jim Cramer Says This Industrial Stock Is Doing &#8216;Very Well&#8217;; Here&#8217;s His Take On Palantir</a>
On May 7, Mizuho analyst John Roberts initiated coverage on Corning with a Neutral rating and announced a price target of $36.
When asked about Intuitive Machines, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LUNR#NASDAQ">LUNR</a>), Cramer said, &#8220;I'm not there on that.&#8221;
On May 14, Intuitive Machines reported a first-quarter GAAP loss of $2.70 per share.
The &#8220;Mad Money&#8221; host said he would hold off Axon Enterprise, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AXON#NASDAQ">AXON</a>) right now.
On May 6, Axon Enterprise posted better-than-expected results for its first quarter, reporting adjusted earnings of $1.15 per share beating market estimates of 94 cents per share.
&#8220;I like defense contractors,&#8221; Cramer said when asked about Kratos Defense &amp; Security Solutions, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KTOS#NASDAQ">KTOS</a>). &#8220;I think you stay on it, maybe even buy more.&#8221;
On May 7, Kratos Defense &amp; Security posted stronger-than-expected results for its first quarter.
Merit Medical Systems, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MMSI#NASDAQ">MMSI</a>) is &#8220;good,&#8221; Cramer said.
On April 30, Merit Medical Systems posted upbeat results for the first quarter.
Price Action:
<ul>
<li>Corning shares gained 0.3% to settle at $36.58 on Wednesday.</li>
<li>Axon shares fell 1.1% to close at $284.87 on Wednesday.</li>
<li>Recursion Pharmaceuticals shares slipped 1.6% to settle at $9.36.</li>
<li>Intuitive Machines shares fell 1.2% to settle at $5.06 on Wednesday.</li>
<li>Kratos Defense shares fell 1.3% to settle at $21.41.</li>
<li>Merit Medical shares fell 0.2% to close at $82.14 on Wednesday.</li>
</ul>
Read Next: <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/05/38962438/top-5-industrials-stocks-that-may-explode-this-quarter">Top 5 Industrials Stocks That May Explode This Quarter</a>
Image: Shutterstock

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RXRX

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Goldman Sachs analyst Noah Poponak maintained a Hold rating on Kratos Defense (KTOS – Research Report) today. The company's shares closed today at ...

Kratos Defense (KTOS) Gets a Hold from Goldman Sachs

Peter Arment, an analyst from Robert W. Baird, maintained the Buy rating on Kratos Defense (KTOS – Research Report). The associated price target re...

Buy Rating for Kratos Defense Backed by Strong Unmanned Systems Growth and Solid Guidance

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Analysts Conflicted on These Industrial Goods Names: Kratos Defense (KTOS), Embraer SA (ERJ) and TPI Composites (TPIC)

BTIG analyst Andre Madrid has maintained their neutral stance on KTOS stock, giving a Hold rating yesterday. Andre Madrid has given his Hold rating...

Kratos Defense: A Hold Rating Amidst Growth and Diversification Concerns

The drone technology market is set to soar this year, driven by increased defense budgets, rising security concerns, commercial applications, and advancements in AI amid geopolitical tensions. Therefore, investors could consider top defense stocks like AeroVironment (AVAV), Kratos Defense & Security Solutions (KTOS), and Lockheed Martin (LMT) to capitalize on this trend. Keep reading... Drone technology is soaring with advancements in the air defense sector and expanding commercial applications. Military drones, surveillance drones, and evolving intelligent sensory systems are making this sector highly promising for both commercial and military use.
Given this favorable backdrop, investing in defense stocks like AeroVironment, Inc. (<a href="https://stocknews.com/stock/AVAV/">AVAV</a>), Kratos Defense &amp; Security Solutions, Inc. (<a href="https://stocknews.com/stock/KTOS/">KTOS</a>), and Lockheed Martin Corporation (<a href="https://stocknews.com/stock/LMT/">LMT</a>) could be a strategic move.
This year, driven by global conflicts, military modernization, and changing warfare dynamics, U.S. funding for AI-powered drones has surged. The focus on autonomous systems and the critical role of unmanned aerial vehicles are transforming defense. The military drone market, valued at $20.21 billion last year, is set to expand rapidly with a <a href="https://www.abc27.com/business/press-releases/ein-presswire/736492269/military-drone-market-trends-innovations-and-future-projections-12-21-cagr-growth-expected/#:~:text=Military%20Drone%20Market%20size%20was,12.21%25%20during%202024%2D2030.">12.21% CAGR</a>.
Notably, the <a href="https://www.csis.org/analysis/department-defenses-collaborative-combat-aircraft-program-good-news-bad-news-and">Air Force's CCA program</a> is fueling excitement in drone tech by advancing AI-driven combat drones. This emphasis on drones in military operations boosts investment and innovation across both defense and commercial sectors. As a result, the US aerospace and defense market is projected to grow from $496.56 billion in 2024 to <a href="https://www.mordorintelligence.com/industry-reports/us-aerospace-and-defense-market">$656.93 billion by 2029</a>, at a CAGR of 5.76%.
Furthermore, the commercial drone market is booming, driven by advancements in AI, and sensors, and expanding uses in agriculture, logistics, and more. With enhanced flight times and battery life, drones are revolutionizing aerial surveillance, data collection, and delivery services. The market is set to reach <a href="https://www.precedenceresearch.com/commercial-drone-market">$1.18 trillion by 2033</a>, growing at a 39.1% CAGR.
Therefore, let's analyze the fundamentals of the three <a href="https://stocknews.com/category/air-defense/">Air/Defense Services</a> picks, beginning with the third choice.
Stock #3: AeroVironment, Inc. (<a href="https://stocknews.com/stock/AVAV/">AVAV</a>)
AVAV designs, develops, produces, delivers, and supports a portfolio of robotic systems and related services for government agencies and businesses internationally. It operates through the UnCrewed Systems (UxS), Loitering Munition Systems (LMS), and MacCready Works (MW) segments.
On July 2, 2024, AVAV announced that the U.S. Department of State approved a $60.2 million foreign military sale of Switchblade 300 loitering munition systems to Taiwan. This sale aims to enhance Taiwan's defense capabilities and supports U.S. interests in the Indo-Pacific region.
In terms of the trailing-12-month net income margin, AVAV's 8.32% is 36.3% higher than the 6.11% industry average. Likewise, its 3.21% trailing-12-month Capex / Sales is 10.2% higher than the 2.91% industry average. Furthermore, its 5.87% trailing-12-month <a href="https://www.investopedia.com/terms/r/return_on_total_assets.asp#:~:text=It%20is%20defined%20as%20the,of%20that%20company's%20total%20assets.">Return on Total Assets</a> is 19.3% higher than the 4.92% industry average.
AVAV's total sales for the fiscal fourth quarter ended April 30, 2024, amounted to $196.98 million, up 5.9% year-over-year. Similarly, its gross margin increased 10.6% from the year-ago quarter to $75.63 million. The company's net income attributable to AVAV was $6.05 million, or $0.22 per share, compared to a net loss attributable to AVAV of $160.47 million, or $6.31 per share, respectively.
For the quarter ended July 31, 2024, AVAV's revenue is expected to increase 22.5% year-over-year to $186.65 million. Its EPS for the quarter ending January 31, 2025, is expected to rise 44.8% year-over-year to $0.91. It surpassed the Street EPS estimates in three of the trailing four quarters. Over the past year, the stock has gained 100.3% to close the last trading session at $187.24.
AVAV's favorable outlook is reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
It has a B grade for Momentum. It is ranked #51 out of 70 stocks in the <a href="https://stocknews.com/category/air-defense/">Air/Defense Services</a> industry. Beyond what we stated above, we have also rated AVAV for Growth, Value, Stability, Sentiment, and Quality. Get all ratings of AVAV <a href="https://stocknews.com/stock/AVAV/">here</a>.
Stock #2: Kratos Defense &amp; Security Solutions, Inc. (<a href="https://stocknews.com/stock/KTOS/">KTOS</a>)
KTOS operates as a technology company serving the defense, national security, and commercial markets. It operates through two segments: Kratos Government Solutions and Unmanned Systems.
On July 22, 2024, KTOS and GE Aerospace announced a partnership to develop and produce small, affordable engines for unmanned aerial systems and collaborative combat aircraft. This new Memorandum of Understanding aims to advance the development and full-scale production of these engines.
On June 27, 2024, KTOS announced the successful first flight of its Erinyes Hypersonic Test Bed, marking a significant advancement in U.S. high-speed experimental research. This achievement supports rapid hypersonic experimentation and data collection for the Missile Defense Agency and the Naval Surface Warfare Center.
KTOS' trailing-12-month Capex / Sales of 5.58% is 91.7% higher than the industry average of 2.91%.
For the fiscal second quarter that ended June 30, 2024, KTOS' total revenues increased 16.8% year-over-year $300.10 million. The company's total gross profit stood at $77.20 million, up 20.8% from the year-ago quarter. Furthermore, its non-GAAP adjusted income from consolidated operations rose 81.8% and 55.6% over the prior-year quarter to $30 million and $0.14 per share.
Street expects KTOS' revenue for the quarter ending September 30, 2024, to increase marginally year-over-year to $276.95 million. Its EPS for the quarter ending March 31, 2025, is expected to grow 1.3% year-over-year to $0.11. KTOS surpassed the consensus EPS estimates in each of the trailing four quarters. The stock has gained 37.1% over the past year to close the last trading session at $20.79.
KTOS' bright prospects are reflected in its POWR Ratings. It is ranked #43 in the same industry. It has an A grade for Growth and a B for Momentum. In addition to the POWR Ratings grades I've just highlighted, you can see KTOS' ratings for Value, Stability, Sentiment, and Quality, <a href="https://stocknews.com/stock/KTOS/">here</a>.
Stock #1: Lockheed Martin Corporation (<a href="https://stocknews.com/stock/LMT/">LMT</a>)
LMT is a security and aerospace company that engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services worldwide. The company operates through Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space segments.
On August 19, 2024, Sikorsky, an LMT company, delivered the 23rd and final VH-92A presidential helicopter to the U.S. Marine Corps. This completion marks the end of the VH-92A program, delivering the next-generation helicopters on budget and on schedule.
On August 15, 2024, LMT announced it will acquire Terran Orbital (LLAP) for approximately $450 million. This strategic acquisition aims to enhance LMT's satellite manufacturing and space capabilities, leveraging Terran Orbital's advanced technology and modular space vehicle designs.
In terms of the trailing-12-month net income margin, LMT's 9.48% is 55.2% higher than the 6.11% industry average. Likewise, its 21.42% trailing-12-month Return on Total Capital is 202% higher than the industry average of 7.09%. Also, LMT's 1.27x trailing-12-month asset turnover ratio is 62.7% higher than the industry average of 0.78x.
LMT's net sales for the fiscal second quarter ended June 30, 2024, grew 8.6% year-over-year to $18.12 billion. Similarly, its aeronautics net sales increased 5.8% year-over-year to $7.28 billion. For the same quarter, the company's non-GAAP net earnings stood at $1.70 billion, while its non-GAAP EPS came in at $7.11, representing a 5.6% increase from the previous year.
Analysts expect LMT's revenue for the quarter ending September 30, 2024, to increase 3.7% year-over-year to $17.51 billion. Its EPS for the quarter ending March 31, 2025, is expected to grow 4.7% year-over-year to $6.63. It surpassed consensus EPS estimates in each of the trailing four quarters. LMT's stock has gained 31.3% over the past six months to close the last trading session at $557.01.
LMT's POWR Ratings reflect strong prospects. It has an overall rating of A, translating to a Strong Buy in our proprietary rating system.
It has a B grade for Momentum, Stability, Sentiment, and Quality. It is ranked #2 in the Air/Defense Services industry. To see LMT's Growth and Value rating, <a href="https://stocknews.com/stock/LMT/">click here</a>.
What To Do Next?
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<hr />
LMT shares were trading at $557.29 per share on Wednesday afternoon, up $0.28 (+0.05%). Year-to-date, LMT has gained 24.69%, versus a 18.53% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Abhishek Bhuyan</h2> <img src='https:/wp-content/uploads/2023/07/ABhuyan.jpg' style="float:left; padding:5px;width:125px;">Abhishek embarked on his professional journey as a financial journalist due to his keen interest in discerning the fundamental factors that influence the future performance of financial instruments.<a href="https://stocknews.com/authors/?author=abhishek-bhuyan">More...</a>The post <a href=https://stocknews.com/news/lmt-avav-ktos-3-drone-technology-stocks-set-to-soar/>3 Drone Technology Stocks Set to Soar</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Drone Technology Stocks Set to Soar

SA Asks: Which defense stocks are most attractive right now?

Benchmark Co. analyst Josh Sullivan maintained a Buy rating on Kratos Defense (KTOS – Research Report) today and set a price target of $25.00. The ...

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Kratos Defense & Security

Kratos Defense & Security (KTOS) Forecast

Kratos Defense & Security (NASDAQ:KTOS) Stock, Quote.Headers.trade-ideas