We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why You Should Add Kratos Defense to Your Portfolio Right Now
Read MoreHide Full Article
Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) , with rising earnings estimates, low debt, high liquidity and a rising backlog, offers a great investment opportunity in the Zacks Aerospace Defense Equipment industry.
Let’s focus on the reasons that make this Zacks Rank #2 (Buy) stock an attractive investment pick at the moment.
KTOS’ Growth Projections & Surprise History
The Zacks Consensus Estimate for KTOS’ 2025 earnings per share (EPS) has increased 3.5% to 59 cents in the past 90 days and indicates a 27.9% improvement from the year-ago estimated figure.
The consensus estimate for 2025 total revenues is pinned at $1.28 billion, which indicates growth of 12.2% from the 2024 estimated figure.
The company delivered an average earnings surprise of 70.63% in the last four quarters.
Debt Position of KTOS
Currently, Kratos Defense’s total debt to capital is 11.65%, better than the industry’s average of 54.03%.
Kratos Defense’s times interest earned ratio (TIE) at the end of the third quarter of 2024 was 4.9. The company’s strong TIE ratio indicates that it will be able to meet its interest payment obligations in the near term without any problems.
KTOS’ Liquidity
The company’s current ratio at the end of the third quarter of 2024 was 3.22, higher than the industry’s average of 1.43. The ratio, being greater than one, indicates Kratos Defense’s ability to meet its future short-term liabilities without difficulties.
KTOS’ Rising Backlog
Kratos Defense had an excellent backlog of $1.29 billion as of Sept. 29, 2024, up 11.1% from the year-ago quarter’s figure. Such significant backlog trends boost the company's revenue-generating possibilities for the following quarters. KTOS expects to recognize approximately 19% of the total backlog as revenues in 2024, an additional 50% in 2025 and the balance thereafter.
KTOS Stock’s Price Movement
Shares of KTOS have gained 56.7% in the past six months compared with the industry’s 19.5% growth.
Mercury Systems has a long-term earnings growth rate of 13.2%. The Zacks Consensus Estimate for MRCY’s fiscal 2025 sales is pinned at $848.9 million, which indicates year-over-year growth of 1.6%.
AAR Corp. delivered an average earnings surprise of 3.90% in the last four quarters. The Zacks Consensus Estimate for AIR’s fiscal 2025 sales is pinned at $2.76 billion, which indicates year-over-year growth of 18.9%.
Leonardo DRS delivered an average earnings surprise of 22.27% in the last four quarters. The Zacks Consensus Estimate for DRS’ 2025 sales is pinned at $3.43 billion, which indicates year-over-year growth of 7.4%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's Why You Should Add Kratos Defense to Your Portfolio Right Now
Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) , with rising earnings estimates, low debt, high liquidity and a rising backlog, offers a great investment opportunity in the Zacks Aerospace Defense Equipment industry.
Let’s focus on the reasons that make this Zacks Rank #2 (Buy) stock an attractive investment pick at the moment.
KTOS’ Growth Projections & Surprise History
The Zacks Consensus Estimate for KTOS’ 2025 earnings per share (EPS) has increased 3.5% to 59 cents in the past 90 days and indicates a 27.9% improvement from the year-ago estimated figure.
The consensus estimate for 2025 total revenues is pinned at $1.28 billion, which indicates growth of 12.2% from the 2024 estimated figure.
The company delivered an average earnings surprise of 70.63% in the last four quarters.
Debt Position of KTOS
Currently, Kratos Defense’s total debt to capital is 11.65%, better than the industry’s average of 54.03%.
Kratos Defense’s times interest earned ratio (TIE) at the end of the third quarter of 2024 was 4.9. The company’s strong TIE ratio indicates that it will be able to meet its interest payment obligations in the near term without any problems.
KTOS’ Liquidity
The company’s current ratio at the end of the third quarter of 2024 was 3.22, higher than the industry’s average of 1.43. The ratio, being greater than one, indicates Kratos Defense’s ability to meet its future short-term liabilities without difficulties.
KTOS’ Rising Backlog
Kratos Defense had an excellent backlog of $1.29 billion as of Sept. 29, 2024, up 11.1% from the year-ago quarter’s figure. Such significant backlog trends boost the company's revenue-generating possibilities for the following quarters. KTOS expects to recognize approximately 19% of the total backlog as revenues in 2024, an additional 50% in 2025 and the balance thereafter.
KTOS Stock’s Price Movement
Shares of KTOS have gained 56.7% in the past six months compared with the industry’s 19.5% growth.
Image Source: Zacks Investment Research
Other Stocks to Consider
Other top-ranked stocks from the same industry are Mercury Systems (MRCY - Free Report) , AAR Corp. (AIR - Free Report) and Leonardo DRS, Inc. (DRS - Free Report) . Mercury Systems sports a Zacks Rank #1 (Strong Buy) at present, while AAR Corp. and Leonardo carry a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Mercury Systems has a long-term earnings growth rate of 13.2%. The Zacks Consensus Estimate for MRCY’s fiscal 2025 sales is pinned at $848.9 million, which indicates year-over-year growth of 1.6%.
AAR Corp. delivered an average earnings surprise of 3.90% in the last four quarters. The Zacks Consensus Estimate for AIR’s fiscal 2025 sales is pinned at $2.76 billion, which indicates year-over-year growth of 18.9%.
Leonardo DRS delivered an average earnings surprise of 22.27% in the last four quarters. The Zacks Consensus Estimate for DRS’ 2025 sales is pinned at $3.43 billion, which indicates year-over-year growth of 7.4%.