Shares of Kratos Defense & Security Solutions Inc. (NASDAQ: KTOS) are trading higher Monday following an upwardly revised price target and more bullish outlook from Benchmark.
Investor Steve Eisman has a surprising take on the escalating tensions in the Middle East, one that cuts from conventional wisdom during periods of geopolitical conflicts.
As tensions continue to flare in the Middle East, U.S. Stock futures inch lower on Wednesday evening, compounded by the Fed's decision to hold rates steady, while warning of lower economic growth and persistent inflation.
U.S. stock futures remain unfazed by President Donald Trump's calls for an "Unconditional Surrender" by Iran on Tuesday night, as tensions continued to flare in the Middle East.
A number of stocks jumped in the pre-market session after Israel carried out significant strikes on Iranian nuclear and military sites, dramatically escalating fears of a broader conflict in the Middle East.
Exciting developments are taking place for the stocks in this article.
They’ve all surged ahead of the broader market over the last month as catalysts such as new products and positive media coverage have propelled their returns.
Aerospace and defense company Kratos (NASDAQ:KTOS) reported Q1 CY2025 results exceeding the market’s revenue expectations, with sales up 9.2% year on year to $302.6 million. On the other hand, next quarter’s revenue guidance of $305 million was less impressive, coming in 3.3% below analysts’ estimates. Its non-GAAP profit of $0.12 per share was 32.8% above analysts’ consensus estimates.
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Kratos (NASDAQ:KTOS) and the rest of the defense contractors stocks fared in Q1.
A number of stocks jumped in the morning session after the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025.
The Russell 2000 (^RUT) is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential.
However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial.
KRATOS DEFENSE & SECURITY (KTOS) shows strong technicals and a high-quality breakout setup, supported by institutional interest and clear support levels. A potential breakout above $36.76 could offer a favorable trading opportunity.
The $10-50 price range often includes mid-sized businesses with proven track records and plenty of growth runway ahead.
They also usually carry less risk than penny stocks, though they’re not immune to volatility as many lack the scale advantages of their larger peers.
Aerospace and defense company Kratos (NASDAQ:KTOS) announced better-than-expected revenue in Q1 CY2025, with sales up 9.2% year on year to $302.6 million. On the other hand, next quarter’s revenue guidance of $305 million was less impressive, coming in 3.3% below analysts’ estimates. Its non-GAAP profit of $0.12 per share was 32.8% above analysts’ consensus estimates.
