We recently published a list of Top 10 Growing Aerospace and Defense Stocks For Trump’s Presidency. In this article, we are going to take a look at where Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) stands against other top growing aerospace and defense stocks for Trump’s Presidency.
There is carnage in the US stock market as the major indices continue to shed points after last week’s aggressive selloff. The Dow was down over 2% with the S&P losing nearly 3% of its value. Nasdaq continued to be the worst of the three, down 4% by market close.
As tariffs continue to spook markets, we look at sectors that are either a safer bet amid the volatility, or provide near-term growth opportunities. In the Aerospace and Defense Industries, such an opportunity is currently presenting itself.
The US is signaling to the rest of the world that it needs to spend more on its own defense rather than relying on the US for military aid. This is making major economies of the world rethink their defense budget allocations.
Since most of the Western world buys its military equipment from the US, the money is eventually going to flow into US companies. This simple bullish thesis is what’s driving the industry and we believe it is time for investors to take positions in these stocks to benefit from this.
To come up with the list of 10 buy and forget Aerospace and Defense stocks for Trump’s Presidency, we only considered stocks with a market cap of at least $2 billion that are the best performers so far in 2025.
A technician in a laboratory carrying out research and development of microwave electronics.
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)
Kratos Defense & Security Solutions, Inc. is a technology company that serves national security, commercial, and defense markets. It operates in Unmanned Systems and Kratos Government Solutions segments. The stock is up 10% for the year despite an 18% correction from its February highs.
The company’s hypersonic missiles are exciting investors. These are unmanned missiles that are so new that there is very limited technology to intercept or counteract them. This has helped the company win a contract with the US defense forces for improving the country’s hypersonic missile capabilities, a necessity after Russia successfully used the technology in Ukraine.
The 5-year contract is important for multiple reasons. It is the largest in the company’s history, so the financial aspect will boost the stock’s performance. However, long-term investors have their eyes on another prize.
By collaborating with the government at the testing stage, KTOS is setting itself up to be a critical part of the United States’ hypersonic capabilities, something both China and Russia actively seek to neutralize to protect their own nuclear weapons.
This means the demand for these weapons isn’t going anywhere and if KTOS can cement its position and perfect the technology, the dollars will eventually flow and trickle down to the investors.
Overall, KTOS ranks 10th on our list of top growing aerospace and defense stocks for Trump’s Presidency. While we acknowledge the potential of KTOS as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as KTOS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
