It has been about a month since the last earnings report for Kratos (KTOS). Shares have added about 19.8% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Kratos due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended downward during the past month.

The consensus estimate has shifted -48.21% due to these changes.

VGM Scores

At this time, Kratos has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Kratos has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Kratos is part of the Zacks Aerospace - Defense Equipment industry. Over the past month, Axon Enterprise (AXON), a stock from the same industry, has gained 4.8%. The company reported its results for the quarter ended December 2024 more than a month ago.

Axon reported revenues of $575.15 million in the last reported quarter, representing a year-over-year change of +33.1%. EPS of $2.08 for the same period compares with $1.12 a year ago.

For the current quarter, Axon is expected to post earnings of $1.34 per share, indicating a change of +16.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -107.2% over the last 30 days.

Axon has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.

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Kratos Defense & Security Solutions, Inc. (KTOS) : Free Stock Analysis Report

Axon Enterprise, Inc (AXON) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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