Latest news with #KTOS
Yahoo
23-05-2025
- Business
- Yahoo
1 Russell 2000 Stock for Long-Term Investors and 2 to Be Wary Of
The Russell 2000 (^RUT) is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential. However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial. Navigating this part of the market can be tricky, which is why we built StockStory to help you separate the winners from the laggards. Keeping that in mind, here is one Russell 2000 stock that could deliver strong gains and two that may face some trouble. Market Cap: $1.21 billion Founded to help people in rural areas get online medical consultations, Teladoc Health (NYSE:TDOC) is a telemedicine platform that facilitates remote doctor's visits. Why Is TDOC Not Exciting? Sales trends were unexciting over the last three years as its 6% annual growth was below the typical consumer internet company Focus on expanding its platform came at the expense of monetization as its average revenue per user fell by 5.3% annually Estimated sales decline of 1.3% for the next 12 months implies a challenging demand environment At $6.92 per share, Teladoc trades at 4x forward EV/EBITDA. If you're considering TDOC for your portfolio, see our FREE research report to learn more. Market Cap: $5.40 billion Established with a commitment to supporting national security, Kratos (NASDAQ:KTOS) is a provider of advanced engineering, technology, and security solutions tailored for critical national security applications. Why Does KTOS Worry Us? 7 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position Eroding returns on capital from an already low base indicate that management's recent investments are destroying value Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution Kratos is trading at $35.38 per share, or 64.8x forward P/E. Dive into our free research report to see why there are better opportunities than KTOS. Market Cap: $5.63 billion Founded in 2001, Construction Partners (NASDAQ:ROAD) is a civil infrastructure company that builds and maintains roads, highways, and other infrastructure projects. Why Are We Bullish on ROAD? Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 40.3% Earnings per share have massively outperformed its peers over the last two years, increasing by 91% annually Free cash flow margin didn't grow over the last five years Construction Partners's stock price of $100.85 implies a valuation ratio of 42.6x forward P/E. Is now the right time to buy? See for yourself in our full research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.
Washington Post
07-05-2025
- Business
- Washington Post
Kratos: Q1 Earnings Snapshot
ROUND ROCK, Texas — ROUND ROCK, Texas — Kratos Defense & Security Solutions Inc. (KTOS) on Wednesday reported first-quarter earnings of $4.5 million. The Round Rock, Texas-based company said it had profit of 3 cents per share. Earnings, adjusted for one-time gains and costs, came to 12 cents per share. The results exceeded Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of 9 cents per share. The military contractor posted revenue of $302.6 million in the period, also topping Street forecasts. Six analysts surveyed by Zacks expected $292.2 million. For the current quarter ending in June, Kratos said it expects revenue in the range of $300 million to $310 million. The company expects full-year revenue in the range of $1.26 billion to $1.29 billion. _____
Yahoo
29-04-2025
- Business
- Yahoo
3 Profitable Stocks Skating on Thin Ice
While profitability is essential, it doesn't guarantee long-term success. Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity". Profits are valuable, but they're not everything. At StockStory, we help you identify the companies that have real staying power. That said, here are three profitable companies to avoid and some better opportunities instead. Trailing 12-Month GAAP Operating Margin: 2.6% Established with a commitment to supporting national security, Kratos (NASDAQ:KTOS) is a provider of advanced engineering, technology, and security solutions tailored for critical national security applications. Why Does KTOS Worry Us? Long-term business health is up for debate as its cash burn has increased over the last five years Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its falling returns suggest its earlier profit pools are drying up Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results Kratos's stock price of $33.59 implies a valuation ratio of 58x forward price-to-earnings. Read our free research report to see why you should think twice about including KTOS in your portfolio, it's free. Trailing 12-Month GAAP Operating Margin: 17.2% With over 14,000 sales personnel and a portfolio spanning more than 2,500 technology manufacturers, Thermo Fisher Scientific (NYSE:TMO) provides scientific equipment, reagents, consumables, software, and laboratory services to pharmaceutical, biotech, academic, and healthcare customers worldwide. Why Are We Hesitant About TMO? Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth Day-to-day expenses have swelled relative to revenue over the last five years as its adjusted operating margin fell by 10 percentage points Diminishing returns on capital suggest its earlier profit pools are drying up At $420 per share, Thermo Fisher trades at 17.8x forward price-to-earnings. To fully understand why you should be careful with TMO, check out our full research report (it's free). Trailing 12-Month GAAP Operating Margin: 8.9% Founded in 2002 and growing into one of America's largest generic drug producers, Amneal Pharmaceuticals (NASDAQ:AMRX) develops, manufactures, and distributes generic medicines, specialty branded drugs, biosimilars, and injectable products for the U.S. healthcare market. Why Does AMRX Fall Short? Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 7.5 percentage points Underwhelming 2.4% return on capital reflects management's difficulties in finding profitable growth opportunities Amneal is trading at $7.76 per share, or 10.1x forward price-to-earnings. Check out our free in-depth research report to learn more about why AMRX doesn't pass our bar. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Axon (+711% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
25-04-2025
- Business
- Yahoo
2 Volatile Stocks Worth Your Attention and 1 to Ignore
Volatility cuts both ways - while it creates opportunities, it also increases risk, making sharp declines just as likely as big gains. This unpredictability can shake out even the most experienced investors. At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. That said, here are two volatile stocks with massive upside potential and one best left to the gamblers. Rolling One-Year Beta: 1.70 Established with a commitment to supporting national security, Kratos (NASDAQ:KTOS) is a provider of advanced engineering, technology, and security solutions tailored for critical national security applications. Why Does KTOS Give Us Pause? Long-term business health is up for debate as its cash burn has increased over the last five years Low returns on capital reflect management's struggle to allocate funds effectively, and its decreasing returns suggest its historical profit centers are aging Diminishing returns on capital from an already low starting point show that neither management's prior nor current bets are going as planned Kratos is trading at $33.25 per share, or 57.5x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than KTOS. Rolling One-Year Beta: 1.89 Founded by three MIT engineers at a local Cambridge bar, Toast (NYSE:TOST) provides integrated point-of-sale (POS) hardware, software, and payments solutions for restaurants. Why Are We Positive On TOST? ARR trends over the last year show it's maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability Expected revenue growth of 22.6% for the next year suggests its market share will rise Software platform has product-market fit given the rapid recovery of its customer acquisition costs Toast's stock price of $35.90 implies a valuation ratio of 3.5x forward price-to-sales. Is now the time to initiate a position? See for yourself in our comprehensive research report, it's free. Rolling One-Year Beta: 1.92 Backed by two million square feet of lab testing space, AAON (NASDAQ:AAON) makes heating, ventilation, and air conditioning equipment for different types of buildings. Why Will AAON Beat the Market? Market share has increased this cycle as its 16.2% annual revenue growth over the last two years was exceptional Earnings growth has trumped its peers over the last two years as its EPS has compounded at 27.7% annually Stellar returns on capital showcase management's ability to surface highly profitable business ventures At $85 per share, AAON trades at 29.3x forward price-to-earnings. Is now a good time to buy? Find out in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
08-04-2025
- Business
- Yahoo
3 Reasons KTOS is Risky and 1 Stock to Buy Instead
Even during a down period for the markets, Kratos has gone against the grain, climbing to $28.94. Its shares have yielded a 15.4% return over the last six months, beating the S&P 500 by 26%. This run-up might have investors contemplating their next move. Is there a buying opportunity in Kratos, or does it present a risk to your portfolio? Get the full breakdown from our expert analysts, it's free. We're happy investors have made money, but we're swiping left on Kratos for now. Here are three reasons why we avoid KTOS and a stock we'd rather own. Established with a commitment to supporting national security, Kratos (NASDAQ:KTOS) is a provider of advanced engineering, technology, and security solutions tailored for critical national security applications. Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king. While Kratos posted positive free cash flow this quarter, the broader story hasn't been so clean. Kratos's demanding reinvestments have drained its resources over the last five years, putting it in a pinch and limiting its ability to return capital to investors. Its free cash flow margin averaged negative 1.5%, meaning it lit $1.49 of cash on fire for every $100 in revenue. Growth gives us insight into a company's long-term potential, but how capital-efficient was that growth? Enter ROIC, a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity). Kratos historically did a mediocre job investing in profitable growth initiatives. Its five-year average ROIC was 3.8%, lower than the typical cost of capital (how much it costs to raise money) for industrials companies. A company's ROIC, or return on invested capital, shows how much operating profit it makes compared to the money it has raised (debt and equity). We like to invest in businesses with high returns, but the trend in a company's ROIC is what often surprises the market and moves the stock price. Over the last few years, Kratos's ROIC has unfortunately decreased. Paired with its already low returns, these declines suggest its profitable growth opportunities are few and far between. Kratos isn't a terrible business, but it isn't one of our picks. With its shares beating the market recently, the stock trades at 48.8× forward price-to-earnings (or $28.94 per share). This valuation tells us a lot of optimism is priced in - we think there are better investment opportunities out there. We'd recommend looking at an all-weather company that owns household favorite Taco Bell. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
