KTOS Stock: 6 Things to Know About Kratos Defense Ahead of the ARKX ETF Launch

Tomorrow’s ARKX ETF launch is stirring up sky-high levels of excitement on Wall Street. Accordingly, investors may want to dive a bit deeper into this new fund’s core holdings. One such holding that seems to have piqued interest is Kratos Defense & Security (NASDAQ:KTOS) and KTOS stock.

The front of a Kratos (KTOS) office in Silicon Valley.

Source: Michael Vi / Shutterstock.com

As I pointed out in a recent piece on this subject, KTOS stock is widely viewed as one of the best space-related plays out there. Ark Invest’s Cathie Woods thinks so too. She’s allocating a weighting of more than 5.6% to Kratos currently. Now, that’s an endorsement.

For those looking to nitpick Ms. Wood’s ARKX ETF holdings, let’s dive into this stock a bit.

Why KTOS Stock Is Trending Today

  • Kratos is a company focusing on providing innovative technology solutions. These systems, platforms and products are developed for national security and communications needs.
  • Accordingly, Kratos has been a key player in advancing specific technologies relating to unmanned systems, satellite communications and combat systems.
  • Last year, the company was awarded a $38 million contract for the company’s XQ-58A Valkyrie aircraft. The Skyborg Delivery Order provided for integration, testing and the delivery of its XQ-58A Valkyrie aircraft to the AFLCMC/WA Advanced Aircraft Program Executive Office.
  • As a key defense player, investors seem to view this company as a much more stable pick than other private entities in this space. Indeed, reliable cash flow is everything, and government-linked contracts help provide a strong investment thesis.

  • This past week, the company received lots of attention over its successful rocket launch for the U.S. Space Force. This was the first launch of a sounding rocket under its “indefinite delivery/indefinite quantity contract that was awarded to the Space Vector Corporation in partnership with Kratos in December of 2018.”
  • Today, investors appear to be bullish on KTOS stock following the heavy weighting Ms. Wood announced in her ARKX ETF. Indeed, it appears investors are looking for her best picks, and this is among her top choices thus far.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.


Article printed from InvestorPlace Media, https://investorplace.com/2021/03/ktos-stock-6-things-to-know-about-kratos-defense-ahead-of-the-arkx-etf-launch/.

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