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Are Aerospace Stocks Lagging Kratos Defense & Security Solutions (KTOS) This Year?

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The Aerospace group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Kratos (KTOS - Free Report) been one of those stocks this year? 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 #4. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

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 #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for KTOS' full-year earnings has moved 20.2% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, KTOS has gained about 4.3% so far this year. Meanwhile, stocks in the Aerospace group have gained about 3.2% on average. This shows that Kratos is outperforming its peers so far this year.

Leidos (LDOS - Free Report) is another Aerospace stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 36.8%.

For Leidos, the consensus EPS estimate for the current year has increased 2.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Kratos belongs to the Aerospace - Defense Equipment industry, a group that includes 23 individual stocks and currently sits at #93 in the Zacks Industry Rank. On average, stocks in this group have gained 19.1% this year, meaning that KTOS is slightly underperforming its industry in terms of year-to-date returns.

In contrast, Leidos falls under the Aerospace - Defense industry. Currently, this industry has 22 stocks and is ranked #58. Since the beginning of the year, the industry has moved -1.7%.

Investors with an interest in Aerospace stocks should continue to track Kratos and Leidos. These stocks will be looking to continue their solid performance.


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