Kratos (KTOS - Free Report) closed at $17.19 in the latest trading session, marking a +1.36% move from the prior day. This move outpaced the S&P 500's daily gain of 1.29%. At the same time, the Dow added 1.49%, and the tech-heavy Nasdaq gained 1.46%.
Prior to today's trading, shares of the military contractor had gained 16.24% over the past month. This has outpaced the Aerospace sector's gain of 11.7% and the S&P 500's gain of 4.57% in that time.
KTOS will be looking to display strength as it nears its next earnings release. On that day, KTOS is projected to report earnings of $0.06 per share, which would represent a year-over-year decline of 33.33%. Meanwhile, our latest consensus estimate is calling for revenue of $188.82 million, down 6.62% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for KTOS. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. KTOS is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, KTOS is holding a Forward P/E ratio of 47.78. This represents a premium compared to its industry's average Forward P/E of 20.17.
We can also see that KTOS currently has a PEG ratio of 6.37. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Aerospace - Defense Equipment was holding an average PEG ratio of 2.15 at yesterday's closing price.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 51, which puts it in the top 20% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.