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Is Kratos Defense & Security Solutions (KTOS) Outperforming Other Aerospace Stocks This Year?

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For those looking to find strong Aerospace stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Kratos (KTOS - Free Report) one of those stocks right now? 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 one of 46 companies in the Aerospace group. The Aerospace group currently sits at #1 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Kratos is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for KTOS' full-year earnings has moved 7.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, KTOS has moved about 8.1% on a year-to-date basis. Meanwhile, stocks in the Aerospace group have gained about 3.4% on average. As we can see, Kratos is performing better than its sector in the calendar year.

Another stock in the Aerospace sector, Leidos (LDOS - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 43.9%.

The consensus estimate for Leidos' current year EPS has increased 2.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Kratos belongs to the Aerospace - Defense Equipment industry, which includes 23 individual stocks and currently sits at #71 in the Zacks Industry Rank. On average, this group has gained an average of 21.6% so far this year, meaning that KTOS is slightly underperforming its industry in terms of year-to-date returns.

Leidos, however, belongs to the Aerospace - Defense industry. Currently, this 22-stock industry is ranked #49. The industry has moved -2.1% so far this year.

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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