Why Shares of Kratos Defense Are Diving Today
Shares of Kratos Defense and Security Solutions (NASDAQ: KTOS) fell more than 10% on Monday after the company lost out to Northrop Grumman for a hypersonic test drone contract award. The bull case for this company remains intact, but the company faces a slower climb ahead.
Kratos' shares have gained 172% over the past three years, even accounting for Monday's decline, on growing investor excitement about its drone portfolio. The company's Valkyrie "loyal wingman" drone, designed to fly into combat alongside crewed fighters and provide extra firepower or act as a decoy, is currently being tested by the Air Force.
Kratos' XQ-58A Valkyrie drone during a test flight. Image source: Air Force photo by 2nd Lt. Randolph Abaya, 586 Flight Test Squadron.
Source Fool.com
