Why Kratos (KTOS) is a Top Momentum Stock for the Long-Term

Core Insights - Zacks Premium offers various tools to help investors make informed decisions and enhance their confidence in the stock market [1][8] - The Zacks Style Scores are designed to assist investors in selecting stocks with the highest potential to outperform the market within a 30-day timeframe [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum characteristics, with A being the highest score indicating better chances of outperforming [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5] Value Score - The Value Score identifies undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow to find attractive investment opportunities [3] Growth Score - The Growth Score emphasizes a company's financial health and future growth potential by analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score helps investors capitalize on price trends by evaluating recent price changes and earnings estimate revisions [4] VGM Score - The VGM Score combines the three Style Scores to identify stocks with the best overall value, growth prospects, and momentum [5] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks historically yielding an average annual return of +25.41% since 1988 [6][7] - Stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended for maximizing investment potential [9] Company Spotlight: Kratos Defense & Security Solutions (KTOS) - Kratos, based in San Diego, specializes in high-performance unmanned aerial target drone systems and various defense technologies [11] - KTOS holds a Zacks Rank of 2 (Buy) and a VGM Score of B, with a Momentum Style Score of B, reflecting a 10.6% increase in share price over the past four weeks [12] - Recent earnings estimates for fiscal 2024 have been revised upward, with the Zacks Consensus Estimate increasing by $0.08 to $0.47 per share, and an average earnings surprise of 73.8% [12][13]