KTOS Stock Analysis: Buy, Sell, or Hold?
KTOS - Kratos Defense & Security Solutions, Inc.
$46.60
0.43 (0.93%)
▲
5d:
-1.58%
30d:
-12.14%
90d:
-26.09%
BUY
HIGH Confidence
Analysis Updated: Jul 31, 2026 12:00 AM ET
Earnings: Aug 06, 2026
2d
Smart Money Accumulation
None View Scanner →
Strength: 3.6/10
Get Alerted When KTOS Hits Your Target Price
Join 10,000+ traders who never miss a move
You're in! Check your email to confirm and set your target price.
100% Free
No spam, ever
Unsubscribe anytime
Interactive Price Chart (1 Month)
Loading chart...
Loading historical data...
Bottom Line:
✅ BUY SIGNAL: KTOS appears deeply undervalued. Market expects -19.3% annual earnings decline despite 131% recent earnings growth. Contrarian opportunity at discount to historical valuation.
✅ BUY SIGNAL: KTOS appears deeply undervalued. Market expects -19.3% annual earnings decline despite 131% recent earnings growth. Contrarian opportunity at discount to historical valuation.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$53.12
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$32.99
Trading above historical range
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 25.0x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: KTOS is currently trading at $46.60, which is considered slightly low relative to its 30-day fair value range of $46.26 to $51.21. From a valuation perspective, the stock is trading at a discount (Forward PE: 42.7) compared to its historical average (81.2). Remarkably, the market is currently pricing in an annual earnings decline of 19.3% over the next few years. This pessimistic expectation contrasts with the company's recent 130.6% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, KTOS is in a strong uptrend. Immediate support is located at $43.09, while resistance sits at $51.49.
Market Sentiment: The stock shows a mixed technical setup (45/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $109.33 (+134.6%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, KTOS is in a strong uptrend. Immediate support is located at $43.09, while resistance sits at $51.49.
Market Sentiment: The stock shows a mixed technical setup (45/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $109.33 (+134.6%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
SLIGHTLY LOW
Historical Trading Range
$46.26 -
$51.21
Company Quality Score
59/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
79.5%
All Signals
- BULLISH: Price oversold vs 30-day range
- NEUTRAL: Mixed technical signals (45/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 134.6% below Wall St target ($109.33)
Trading Range Analysis
30-Day Trading Range
$46.26 -
$51.21
Current vs Trading Range
SLIGHTLY LOW
Support & Resistance Levels
Support Level
$43.09
Resistance Level
$51.49
Current Trend
Strong Uptrend
Technical data as of
Jul 31, 2026
Fundamental Context
Forward P/E (Next Year Est.)
42.71
Wall Street Target
$109.33
(+134.6%)
Revenue Growth (YoY)
22.6%
Earnings Growth (YoY)
130.6%
Profit Margin
2.1%
Valuation Discount vs History
-19.3% cheaper
PE vs Historical
42.7 vs 81.2
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-19.3%
(market-implied from PE analysis)
1-Year Target
$41.94
(-10%)
2-Year Target
$37.75
(-19%)
3-Year Target
$33.97
(-27%)
3-Yr Target (if PE normalizes)
(PE: 43→81)
$64.59
(+39%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 42.7, Growth: 40.5%)
$129.22
(+177%)
Base:
(SPY PE: 20.7, Growth: 40.5%)
$62.73
(+35%)
Bear:
(PE: 17.6, Growth: 40.5%)
$53.32
(+14%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (73x PE), but valuation improves significantly next year (43x PE) as earnings recover.
Forward PE: 72.99 | Forward EPS (Implied): $0.64
Bull Case
$56.27
(+21%)
Analyst growth 15.0%, PE expands to 76.6
Base Case
$46.60
(0%)
Market implied 0.0%, PE stable at 73.0
Bear Case
$35.65
(-24%)
Severe decline -15.0%, PE contracts to 65.7
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 42.7 to 81.2
Stabilization Target:
$88.61
(+90.1%)
PE Expansion Potential:
+90.1%
Share & Embed Analysis
Last updated: August 03, 2026 1:28 AM ET
Data refreshes hourly during market hours. Next update: 2:28 AM
Data refreshes hourly during market hours. Next update: 2:28 AM
🔥 Top Stocks Breaking Out Now
| Ticker | Score | Recommendation | Change % |
|---|
Technical Signals Check
Is KTOS showing a specific setup today?
Insider Activity (6 Months)
0
Buys
20
Sells
Net
INSIDERS SELLING
Recent Transactions
Scot B Jarvis
SELL
5417 shares
2026-04-16
Marie Mendoza
SELL
1500 shares
2026-04-15
Phillip D Carrai
SELL
6500 shares
2026-04-15
Top Rated Aerospace & Defense Stocks
Top-rated stocks in Aerospace & Defense by analyst ratings.
| Stock | Analyst Consensus | Analyst Target | Tradestie Score |
|---|---|---|---|
|
BA
The Boeing Company |
STRONG BUY
27 analysts |
$271 | 60 HOLD |
|
HWM
Howmet Aerospace Inc |
STRONG BUY
25 analysts |
$313 | 53 HOLD |
|
TDG
Transdigm Group Incorpor… |
STRONG BUY
23 analysts |
$1512 | 58 HOLD |
|
GE
GE Aerospace |
STRONG BUY
20 analysts |
$405 | 63 BUY |
|
RTX
RTX Corporation |
BUY
24 analysts |
$230 | 57 HOLD |
Advanced KTOS Option Strategies
Professional options setups generated by AI based on today's KTOS price and gamma walls.
