Strength Seen in Kratos (KTOS): Can Its 11.1% Jump Turn into More Strength?
Kratos (KTOS) shares ended the last trading session 11.1% higher at $16.81. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 2.9% gain over the past four weeks.
The recent attack made by Palestine’s Hamas group on Israel and the following retaliatory strike from the Israeli military in Gaza has once again created a war zone the Middle East. Such conflicts tend to boost investors’ confidence in defense stocks, which in turn must have resulted in the latest uptick in KTOS’ share price.
This military contractor is expected to post quarterly earnings of $0.08 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $252.68 million, up 10.5% 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 belongs to the Zacks Aerospace - Defense Equipment industry. Another stock from the same industry, Moog (MOG.A), closed the last trading session 2.8% higher at $115.40. Over the past month, MOG.A has returned -2.1%.
For Moog , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.71. This represents a change of +25.7% from what the company reported a year ago. Moog currently has a Zacks Rank of #3 (Hold).
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Kratos Defense & Security Solutions, Inc. (KTOS) : Free Stock Analysis Report
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