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Rolls-Royce Holdings PLC (RYCEY) - free report >>
Kratos Defense & Security Solutions, Inc. (KTOS) - free report >>
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Rolls-Royce Holdings PLC (RYCEY) - free report >>
Kratos Defense & Security Solutions, Inc. (KTOS) - free report >>
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Is Kratos Defense & Security Solutions (KTOS) Outperforming Other Aerospace Stocks This Year?
For those looking to find strong Aerospace stocks, it is prudent to search for companies in the group that are outperforming their peers. Kratos (KTOS - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Aerospace peers, we might be able to answer that question.
Kratos is a member of the Aerospace sector. This group includes 46 individual stocks and currently holds a Zacks Sector Rank of #2. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Kratos is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for KTOS' full-year earnings has moved 8.1% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, KTOS has returned 0.7% so far this year. Meanwhile, the Aerospace sector has returned an average of -5.2% on a year-to-date basis. This means that Kratos is outperforming the sector as a whole this year.
Another stock in the Aerospace sector, Rolls-Royce Holdings PLC (RYCEY - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 50.3%.
In Rolls-Royce Holdings PLC's case, the consensus EPS estimate for the current year increased 3.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Kratos belongs to the Aerospace - Defense Equipment industry, a group that includes 23 individual companies and currently sits at #46 in the Zacks Industry Rank. Stocks in this group have gained about 13.5% so far this year, so KTOS is slightly underperforming its industry this group in terms of year-to-date returns. Rolls-Royce Holdings PLC is also part of the same industry.
Investors interested in the Aerospace sector may want to keep a close eye on Kratos and Rolls-Royce Holdings PLC as they attempt to continue their solid performance.