What Makes Kratos Defense & Security Solutions (KTOS) an Attractive Investment?

Group 1 - Loomis Sayles Small Cap Growth Fund reported a return of 9.37% in Q2 2025, underperforming the Russell 2000 Growth Index which returned 11.97% due to security selection issues in the information technology and financial sectors [1] - The fund highlighted Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) as a significant investment, noting a one-month return of 33.27% and a 52-week gain of 254.88% [2][3] - As of September 29, 2025, Kratos Defense & Security Solutions, Inc. had a market capitalization of $14.867 billion, with shares closing at $88.08 [2] Group 2 - Kratos Defense & Security Solutions, Inc. is recognized for its leadership in hardware and software solutions for space exploration and has a growing drone business primarily serving the US government [3] - The company is seen as having substantial potential in the tactical drone market, which is expected to attract continued interest from the US military [3] - At the end of Q2 2025, 33 hedge fund portfolios held shares of Kratos Defense & Security Solutions, an increase from 17 in the previous quarter [4]