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We recently compiled a list of the Why These 15 Stocks Are Skyrocketing in 2025. In this article, we are going to take a look at where Kratos Defense & Security Solutions (NASDAQ:KTOS) stands against the other stocks.
Stock gains always get people talking, and 2025 is no exception. Markets have moved higher for a while due to a shift toward tech innovation. The pace might slow after two years of significant returns, but investors have regained their confidence after the Stargate project was announced.
Small and mid-sized companies have started to pick up pace recently and are landing on investors’ radars as mega-cap stocks are now trading at nosebleed valuations. These companies have higher growth potential than their mega-cap rivals, and that explains the sudden surge of interest.
Smaller and mid-tier stocks did face challenges in prior years when corrections and interest rate hikes weighed on market sentiment. However, now that inflation seems more contained and Trump pushes for more rate cuts, things look even better for these mid-sized stocks.
Methodology
For this article, I screened the top-performing stocks year-to-date in the $5 billion to $20 billion market capitalization bracket. Stocks that I have covered recently will be excluded from this list.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds invest in? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
A technician in a laboratory carrying out research and development of microwave electronics.
Kratos Defense & Security Solutions (NASDAQ:KTOS)
Number of Hedge Fund Holders In Q3 2024: 21
Kratos Defense & Security Solutions (NASDAQ:KTOS) is a tech company focused on satellites, unmanned systems, and space system products. It also has missile defense and hypersonic systems.
The stock is up significantly so far in 2025 due to the announcement of a $24.85 million contract modification from the U.S. Marine Corps to help integrate mission systems and subsystems for the MQ-58 Valkyrie drone variant. It is a tactical UAP. It can support electronic warfare and also carry weapons.
Kratos has also posted solid growth. Q3 2024 revenue reached $276 million. EPS also beat analyst expectations and reached $0.02. Management has a forecast base-case scenario where revenue grows 10% in fiscal 2025.