Kratos (KTOS) Stock Jumps 12.7%: Will It Continue to Soar?
Kratos (KTOS) shares rallied 12.7% in the last trading session to close at $15.49. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 0.7% loss over the past four weeks.
Kratos Defense continues to benefit from its transition from development to production and delivery in certain areas. Kratos is expected to gain further with newer more recent contract awards, where the company negotiated higher rates and costs with its customers.
Kratos’ tactical jet drones are recognized as the most capable and affordable in their class. The company with support from supply chain partners, vendors and teammates, will be able to produce 150 made-in America Kratos jet drone aircraft annually. Kratos has received additional tactical drone contract awards, including Kratos’ Valkyrie and are in negotiations for additional contract awards, which are expect to receive in the coming months,
This military contractor is expected to post quarterly earnings of $0.04 per share in its upcoming report, which represents a year-over-year change of -42.9%. Revenues are expected to be $235.69 million, up 5.1% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Kratos, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on KTOS going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Kratos is part of the Zacks Aerospace - Defense Equipment industry. CAE (CAE), another stock in the same industry, closed the last trading session 1.3% higher at $22.03. CAE has returned -0.2% in the past month.
CAE's consensus EPS estimate for the upcoming report has changed -11.1% over the past month to $0.16. Compared to the company's year-ago EPS, this represents a change of +220%. CAE currently boasts a Zacks Rank of #4 (Sell).
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