Why Shares of Kratos Defense & Security Are Soaring Today
Shares of Kratos Defense & Security (NASDAQ: KTOS) traded up 10% on Friday afternoon, part of a broader surge by defense stocks following news that the U.S. military had killed Iranian general Qassem Soleimani. While the long-term ramifications of the airstrike are hard to predict, the event will likely raise global tensions and make an election-year cutback in military spending less likely.
Kratos has long been among the most volatile of defense companies, rising more than 300% over the past five years. But the company has been stuck in neutral of late as investors wait word about a potential Pentagon order for Kratos' promising Valkyrie wingman drone.
Kratos' Valkyrie drone during a 2019 test flight. Image source: U.S. Air Force Photo by 2nd Lt. Randolph Abaya, 586 Flight Test Squadron.
Source Fool.com
