Kratos, Six Others Lead Rallying S&P Midcap 400 Stocks

Group 1 - The S&P midcap 400 index has increased by more than 5% in January 2026, outperforming the large-cap S&P 500 index, which has risen by less than 1% [5] - Notable midcap performers include drone manufacturer Kratos (KTOS), semiconductor suppliers, and various mining stocks [5] - Defense stocks are experiencing significant growth, particularly in light of increased budget proposals, with Kratos Defense & Security seeing a composite rating climb to 96 [10] Group 2 - The market is witnessing a surge in defense stocks, driven by geopolitical tensions and budget increases, particularly a proposed $500 billion hike [10] - Companies like Hecla and Bloom Energy are among the new entrants in the best growth stock lists, indicating a shift in market dynamics [10] - The Ants Indicator has identified strength in Rocket Lab ahead of its breakout, showcasing the potential for significant stock movements in the space sector [6]