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The Zacks Analyst Blog Highlights Kratos Defense & Security Solutions, Heico, Curtiss-Wright and AeroVironment
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For Immediate Release
Chicago, IL – November 4, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Kratos Defense & Security Solutions (KTOS - Free Report) , Heico (HEI - Free Report) , Curtiss-Wright (CW - Free Report) and AeroVironment (AVAV - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
4 Defense Stocks Poised to Beat Expectations This Earnings Season
The Zacks Aerospace sector's third-quarter 2026 earnings are expected to outperform estimates due to rising global defense spending, geopolitical tensions and military modernization programs, driving demand for advanced defense systems and technologies. Strong order backlogs provide revenue visibility, while increasing investments in AI, autonomous systems, hypersonic weapons, electronic warfare and counter-drone technologies create additional growth opportunities. Per the latest Earnings Preview, the sector's quarterly earnings are expected to rise 186.2% on 13.1% higher revenues.
With the assistance of the Zacks Stock Screener, we have identified four defense stocks, namely Kratos Defense & Security Solutions, Heico, Curtiss-Wright and AeroVironment, which are poised to beat on earnings this reporting cycle.
These stocks have the ideal combination of two ingredients — a positiveEarnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to surpass expectations. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Factors Likely to Influence Defense Stocks' Q3 Results
Geopolitical tensions and increasing military modernization requirements are encouraging governments to strengthen defense capabilities. Higher defense budgets are supporting demand for fighter jets, missiles, missile-defense systems, naval platforms, radars, drones and advanced military technologies. This is creating opportunities for defense contractors to secure new contracts and expand existing programs.
Aerospace and defense companies continue to benefit from substantial order backlogs, providing revenue visibility over the coming quarters and years. Companies with strong backlogs and consistent contract execution are better positioned to sustain revenue growth.
Rising investments in artificial intelligence, autonomous systems, hypersonic weapons, electronic warfare, space-based surveillance and counter-drone technologies are creating new growth opportunities. Governments are increasingly prioritizing next-generation warfare capabilities, benefiting companies that develop advanced military systems, sensors, communication networks and unmanned platforms.
Shortages of critical components, raw materials, semiconductors and specialized aerospace parts continue to affect manufacturing schedules. Dependence on a limited number of suppliers can delay aircraft deliveries and defense program execution, affecting revenue recognition and profitability.
A shortage of skilled workers could restrict production capacity. Higher labor costs, wage inflation, training expenses and employee retention challenges may increase operating expenses and put pressure on margins.
Defense Stocks Poised to Outperform
Kratos Defense offers high-performance, jet-powered unmanned aerial target drone systems designed to simulate advanced adversarial fighter aircraft, missiles and other emerging threats. Kratos Defense's expansion of its York and Oklahoma City facilities is expected to boost manufacturing capacity for advanced military hardware and jet-powered drones, supporting higher deliveries amid rising defense demand in the to-be-reported quarter. Strong third-quarter revenue guidance, growing hypersonics sales, and a healthy order backlog further strengthen its growth outlook and revenue visibility.
The Zacks Consensus Estimate for third-quarter earnings is pegged at 21 cents per share, indicating an increase of 50% from the year-ago reported figure. KTOS currently has an Earnings ESP of +8.78% and a Zacks Rank of 1. You can see the complete list of today's Zacks #1 Rank stocks here.
Heico is one of the world's leading manufacturers of Federal Aviation Administration ("FAA")-approved jet engine and aircraft component replacement parts. It also manufactures various types of electronic equipment for the aviation, defense, space, medical, telecommunications and electronics industries. HEICO's upcoming-quarter growth prospects remain favorable, supported by resilient aerospace aftermarket demand, increasing defense and space-related business, a substantial backlog and acquisition contributions. HEICO expects increased net sales at both the Flight Support Group and Electronic Technologies Group during the remainder of fiscal 2026, supported by underlying customer demand and contributions from recent acquisitions.
The Zacks Consensus Estimate for fiscal fourth-quarter 2026 earnings is pegged at $1.62 per share, indicating an improvement of 21.8% from the year-ago quarter's reported figure. HEI currently has an Earnings ESP of +1.71% and a Zacks Rank of 2.
Curtiss-Wright provides highly engineered products and services for high-performance platforms, and critical applications in key areas such as commercial aerospace and defense electronics, reactor coolant pumps for next-generation nuclear reactors as well as advanced surface treatment technologies. The company is likely to have benefited from higher defense procurement spending by the United States and its allied nations, with increased demand for naval and land-based military systems. Strong contract wins and sustained order inflows are also expected to have strengthened its revenue pipeline and improved business visibility.
The Zacks Consensus Estimate for third-quarter earnings is pegged at $3.76 per share, indicating an improvement of 10.6% from the year-ago quarter's reported figure. CW currently has an Earnings ESP of +0.23% and a Zacks Rank of 3.
AeroVironment designs, develops, produces and operates a portfolio of products and services for government agencies, businesses and consumers. It supplies UAS, tactical missile systems and related services primarily to organizations within the United States Department of Defense. It also supplies charging systems and services for electric vehicles, and power cycling and test systems to commercial, consumer and government customers. AeroVironment's quarterly earnings are supported by strong defense demand, expanding contract wins, a record funded backlog and increasing opportunities in autonomous systems and counter-drone technologies.
The Zacks Consensus Estimate for fiscal second-quarter 2027 earnings is pegged at 46 cents per share, indicating an increase of 4.6% from the year-ago reported figure. AVAV currently has an Earnings ESP of +121.05% and a Zacks Rank of 3.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
View the Zacks #1 Rank List
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The Zacks Analyst Blog Highlights Kratos Defense & Security Solutions, Heico, Curtiss-Wright and AeroVironment
For Immediate Release
Chicago, IL – November 4, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Kratos Defense & Security Solutions (KTOS - Free Report) , Heico (HEI - Free Report) , Curtiss-Wright (CW - Free Report) and AeroVironment (AVAV - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
4 Defense Stocks Poised to Beat Expectations This Earnings Season
The Zacks Aerospace sector's third-quarter 2026 earnings are expected to outperform estimates due to rising global defense spending, geopolitical tensions and military modernization programs, driving demand for advanced defense systems and technologies. Strong order backlogs provide revenue visibility, while increasing investments in AI, autonomous systems, hypersonic weapons, electronic warfare and counter-drone technologies create additional growth opportunities. Per the latest Earnings Preview, the sector's quarterly earnings are expected to rise 186.2% on 13.1% higher revenues.
With the assistance of the Zacks Stock Screener, we have identified four defense stocks, namely Kratos Defense & Security Solutions, Heico, Curtiss-Wright and AeroVironment, which are poised to beat on earnings this reporting cycle.
These stocks have the ideal combination of two ingredients — a positiveEarnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to surpass expectations. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Factors Likely to Influence Defense Stocks' Q3 Results
Geopolitical tensions and increasing military modernization requirements are encouraging governments to strengthen defense capabilities. Higher defense budgets are supporting demand for fighter jets, missiles, missile-defense systems, naval platforms, radars, drones and advanced military technologies. This is creating opportunities for defense contractors to secure new contracts and expand existing programs.
Aerospace and defense companies continue to benefit from substantial order backlogs, providing revenue visibility over the coming quarters and years. Companies with strong backlogs and consistent contract execution are better positioned to sustain revenue growth.
Rising investments in artificial intelligence, autonomous systems, hypersonic weapons, electronic warfare, space-based surveillance and counter-drone technologies are creating new growth opportunities. Governments are increasingly prioritizing next-generation warfare capabilities, benefiting companies that develop advanced military systems, sensors, communication networks and unmanned platforms.
Shortages of critical components, raw materials, semiconductors and specialized aerospace parts continue to affect manufacturing schedules. Dependence on a limited number of suppliers can delay aircraft deliveries and defense program execution, affecting revenue recognition and profitability.
A shortage of skilled workers could restrict production capacity. Higher labor costs, wage inflation, training expenses and employee retention challenges may increase operating expenses and put pressure on margins.
Defense Stocks Poised to Outperform
Kratos Defense offers high-performance, jet-powered unmanned aerial target drone systems designed to simulate advanced adversarial fighter aircraft, missiles and other emerging threats. Kratos Defense's expansion of its York and Oklahoma City facilities is expected to boost manufacturing capacity for advanced military hardware and jet-powered drones, supporting higher deliveries amid rising defense demand in the to-be-reported quarter. Strong third-quarter revenue guidance, growing hypersonics sales, and a healthy order backlog further strengthen its growth outlook and revenue visibility.
The Zacks Consensus Estimate for third-quarter earnings is pegged at 21 cents per share, indicating an increase of 50% from the year-ago reported figure. KTOS currently has an Earnings ESP of +8.78% and a Zacks Rank of 1. You can see the complete list of today's Zacks #1 Rank stocks here.
Heico is one of the world's leading manufacturers of Federal Aviation Administration ("FAA")-approved jet engine and aircraft component replacement parts. It also manufactures various types of electronic equipment for the aviation, defense, space, medical, telecommunications and electronics industries. HEICO's upcoming-quarter growth prospects remain favorable, supported by resilient aerospace aftermarket demand, increasing defense and space-related business, a substantial backlog and acquisition contributions. HEICO expects increased net sales at both the Flight Support Group and Electronic Technologies Group during the remainder of fiscal 2026, supported by underlying customer demand and contributions from recent acquisitions.
The Zacks Consensus Estimate for fiscal fourth-quarter 2026 earnings is pegged at $1.62 per share, indicating an improvement of 21.8% from the year-ago quarter's reported figure. HEI currently has an Earnings ESP of +1.71% and a Zacks Rank of 2.
Curtiss-Wright provides highly engineered products and services for high-performance platforms, and critical applications in key areas such as commercial aerospace and defense electronics, reactor coolant pumps for next-generation nuclear reactors as well as advanced surface treatment technologies. The company is likely to have benefited from higher defense procurement spending by the United States and its allied nations, with increased demand for naval and land-based military systems. Strong contract wins and sustained order inflows are also expected to have strengthened its revenue pipeline and improved business visibility.
The Zacks Consensus Estimate for third-quarter earnings is pegged at $3.76 per share, indicating an improvement of 10.6% from the year-ago quarter's reported figure. CW currently has an Earnings ESP of +0.23% and a Zacks Rank of 3.
AeroVironment designs, develops, produces and operates a portfolio of products and services for government agencies, businesses and consumers. It supplies UAS, tactical missile systems and related services primarily to organizations within the United States Department of Defense. It also supplies charging systems and services for electric vehicles, and power cycling and test systems to commercial, consumer and government customers. AeroVironment's quarterly earnings are supported by strong defense demand, expanding contract wins, a record funded backlog and increasing opportunities in autonomous systems and counter-drone technologies.
The Zacks Consensus Estimate for fiscal second-quarter 2027 earnings is pegged at 46 cents per share, indicating an increase of 4.6% from the year-ago reported figure. AVAV currently has an Earnings ESP of +121.05% and a Zacks Rank of 3.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.