Kratos (KTOS) Soars 6.5%: Is Further Upside Left in the Stock?

Company Overview - Kratos Defense (KTOS) shares increased by 6.5% to $24.82 in the last trading session, with a higher-than-average trading volume, contrasting with a 1.6% gain over the past four weeks [1] - Analysts from Truist Financial and JMP Securities have reiterated "buy" ratings for Kratos and raised target prices, boosting investor confidence [2] Earnings Expectations - Kratos is expected to report quarterly earnings of $0.08 per share, reflecting a year-over-year decline of 33.3%, with revenues projected at $278.47 million, a 1.4% increase from the previous year [3] - The consensus EPS estimate for Kratos has been revised down by 9.1% over the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [4] Industry Context - Kratos operates within the Zacks Aerospace - Defense Equipment industry, where Leonardo DRS, Inc. (DRS) also operates, having closed 5.2% higher at $29.70, but with a -1.1% return over the past month [4] - Leonardo DRS has a consensus EPS estimate of $0.20, unchanged from the previous year, and currently holds a Zacks Rank of 2 (Buy) [5]