An analysis identifies Kratos Defense & Security Solutions (KTOS) as a potential bargain. The company recently secured approximately $500 million in contract awards. Kratos also opened a new manufacturing facility in Pennsylvania. The company reports a larger work backlog and an expanded manufacturing footprint. Despite these operational developments, Kratos stock has fallen about 40% year-to-date. The stock declined over 22% in the last 90 days.
The analysis highlights a popular investor narrative: Kratos stock is undervalued. It suggests a potential fair value of $112.20. Kratos last closed at $47.35. This valuation stems from Kratos's strategic investments. Kratos invests in tactical drone production, missile propulsion, and microelectronics. These investments position the company ahead of competitors. Global demand for unmanned and autonomous systems is increasing.