Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) stock rose Tuesday following the announcement of new contracts valued at approximately $65 million. The company is designing and developing simulators for warfighter training, which has contributed to the positive momentum.
Kratos Secures $65M in Defense Contracts
Kratos has been awarded contracts to deliver training systems supporting operations and maintenance for various aircraft, including the Army’s CH47F Chinook and UH-60M Blackhawk helicopters.
These contracts highlight the company’s focus on cost-effective solutions that enhance training outcomes, underscoring strong demand for its innovative technologies in the defense sector.
The company’s training systems are designed to support a wide range of knowledge sets across multiple platforms, including the Airforce’s UH-1 Huey.
This strategic move aligns with Kratos’ commitment to providing advanced training solutions that are essential to maintaining operational readiness in military operations.
The broader market is experiencing mixed performance today, with the Dow Jones up 0.09% while the Nasdaq is down 1.15%. Kratos’ stock is rising even as the broader market faces headwinds, suggesting that the company’s specific news is driving investor interest.
Kratos Stock Shows Long-Term Strength
The stock is currently trading 11.2% below its 20-day simple moving average (SMA) but is 13.3% above its 100-day SMA, demonstrating longer-term strength. Over the past 12 months, shares have increased by 198.01% and are currently positioned closer to their 52-week highs than lows.
The RSI is at 46.73, which is considered neutral territory, while MACD is below its signal line, indicating bearish pressure on the stock. The combination of neutral RSI and bearish MACD suggests mixed momentum.
- Key Resistance: $112.50
- Key Support: $81.00
Anticipation Builds for Kratos’ Earnings Report
Investors are looking ahead to the next earnings report on Feb. 25, 2026.
- EPS Estimate: $0.13
- Revenue Estimate: $327.81 million (Up from $283.10 million YoY)
- Valuation: P/E of 739.7x (Indicates premium valuation)
Analyst Consensus & Recent Actions:
The stock carries a Buy Rating with an average price target of $90.78. Recent analyst moves include:
- Keybanc: Overweight (Raises Target to $130.00) (Jan. 28)
- Piper Sandler: Initiated with Neutral (Target $99.00) (Jan. 22)
- Goldman Sachs: Buy (Raises Target to $125.00) (Jan. 20)
Valuation Insight: While the stock trades at a premium P/E multiple, the strong consensus and 100% expected earnings decline suggest analysts view this growth as justification for the current valuation.
Kratos Scores High on Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Kratos Defense & Security Solutions, highlighting its strengths and weaknesses compared to the broader market:
- Value Rank: 2.54 — The stock is trading at a steep premium relative to peers.
- Quality Rank: 81.77 — Balance sheet remains healthy.
- Momentum Rank: 96.87 — Stock is outperforming the broader market.
The Verdict: Kratos Defense & Security Solutions’ Benzinga Edge signal reveals a classic ‘High-Flyer’ setup. While the Momentum (96.87) confirms the strong trend, the low Value (2.54) score warns that the stock is priced for perfection—investors should ride the trend but use tight stop-losses.
Top ETFs Featuring Kratos (KTOS)
- State Street SPDR S&P Aerospace & Defense ETF (NYSE:XAR): 3.63% Weight
- SPDR S&P Aerospace & Defense ETF (NYSE:XAR): 4.54% Weight
- ARK Autonomous Technology & Robotics ETF (BATS:ARKQ): 8.95% Weight
Significance: Because KTOS carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
KTOS Price Action: Kratos Defense & Security shares were up 4.31% at $100.30 at the time of publication on Tuesday, according to Benzinga Pro data.
Photo by Michael Vi via Shutterstock
