Kratos Defense & Security Solut (KTOS) Stock Analysis
Falling Knife setup
Industrials · Aerospace & Defense
Sell if holding. Engine safety override at $62.28: Quality below floor (2.4 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.5/10 and A.R:R 5.7:1 is above the 1.5:1 BUY gate. Specifically: Below-average business quality; Negative price momentum; Below long-term trend.
Kratos Defense & Security Solutions develops technology, hardware, and software products for defense and national security markets, including unmanned aerial drones, hypersonic/rocket systems, satellite ground systems, and microwave electronics. The US Government (including all... Read more
Sell if holding. Engine safety override at $62.28: Quality below floor (2.4 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.5/10 and A.R:R 5.7:1 is above the 1.5:1 BUY gate. Specifically: Below-average business quality; Negative price momentum; Below long-term trend. Chart setup: Death cross, below all MAs, RSI 34, MACD bearish. Score 4.5/10, moderate confidence.
Passes 5/7 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear). Fails on weak momentum and earnings proximity 6d<=7d. Suitability: moderate.
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHCustomerU.S. Government68%10-K Item 1A: 'In fiscal 2025, 2024 and 2023, we generated 68%, 67% and 69%, respectively, of our total revenues from contracts with the U.S. Government'
- MEDIUMCustomerU.S. Navy18%10-K Item 1A: 'the U.S. Navy accounted for 17.7% and 14.7%, respectively, of our total revenues'
- LOWCustomerU.S. Air Force13%10-K Item 1A: 'the U.S. Air Force accounted for 12.6% and 15.2% respectively, of our total revenues'
Material Events(8-K, last 90d)
- 2026-03-25Item 5.02LOWBoard appointed David King as director effective March 23, 2026, also to Audit Committee. Mr. Hoglund stepped down from Audit Committee but remains Chairman of the Board.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer
Rating Breakdown
3 floor-breakers
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Quality below the gate floor. Component breakdown shows what dragged the score down.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $62.28: Quality below floor (2.4 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.5/10 and A.R:R 5.7:1 is above the 1.5:1 BUY gate. Specifically: Below-average business quality; Negative price momentum; Below long-term trend. Chart setup: Death cross, below all MAs, RSI 34, MACD bearish. Prior stop was $57.89. Score 4.5/10, moderate confidence.
Take-profit target: $105.08 (+68.8% upside). Prior stop was $57.89. Stop-loss: $57.89.
Concentration risk — Customer: U.S. Government (68.0%); Quality below floor (2.4 < 4.0).
Kratos Defense & Security Solut trades at a P/E of 458.2 (forward 55.4). TrendMatrix value score: 4.8/10. Verdict: Sell.
27 analysts cover KTOS with a consensus score of 4.1/5. Average price target: $117.
What does Kratos Defense & Security Solut do?Kratos Defense & Security Solutions develops technology, hardware, and software products for defense and national...
Kratos Defense & Security Solutions develops technology, hardware, and software products for defense and national security markets, including unmanned aerial drones, hypersonic/rocket systems, satellite ground systems, and microwave electronics. The US Government (including all military branches and FMS) represented 68% of total revenues in fiscal 2025.