Midday Stock Highlights: Notable Movements in Unity Software, Rivian, Pinterest, Trex, and Others
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 05 2025
0mins
Should l Buy KTOS?
Source: CNBC
Unity Software and Allegiant Travel Surge: Unity Software's stock rose 8% due to better-than-expected Q3 results and optimistic Q4 guidance, while Allegiant Travel's shares surged 22% after raising its full-year earnings outlook.
Mixed Results for Perrigo and Rivian: Perrigo's stock fell 20% despite beating earnings estimates, as revenue missed expectations and the company cut its full-year outlook. In contrast, Rivian's shares jumped 22% following strong Q3 results and confirmation of its R2 vehicle launch timeline.
Significant Moves in Other Stocks: Monro's stock increased 18% after Carl Icahn became the largest shareholder, while Solaredge Technologies soared 21% on a strong Q3 report. Teradata and Lumentum also saw significant gains of 26% each after beating earnings and revenue forecasts.
Declines for Pinterest and Trex: Pinterest's shares dropped over 21% due to weaker-than-expected earnings, while Trex tumbled 29% after slashing its full-year sales outlook amid weak demand.
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Analyst Views on KTOS
Wall Street analysts forecast KTOS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KTOS is 108.69 USD with a low forecast of 80.00 USD and a high forecast of 150.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
11 Buy
2 Hold
0 Sell
Strong Buy
Current: 94.410
Low
80.00
Averages
108.69
High
150.00
Current: 94.410
Low
80.00
Averages
108.69
High
150.00
About KTOS
Kratos Defense & Security Solutions, Inc. is a technology, products, system and software company addressing the defense, national security, and commercial markets. It operates through two segments: Kratos Government Solutions (KGS) and Unmanned Systems (US). The KGS segment includes its microwave electronic products, space, satellite and cyber, training solutions, command, control, communication, computing, combat, intelligence surveillance and reconnaissance (C5ISR)/modular systems, turbine technologies, and defense and rocket support services operating segments. The US segment consists of its unmanned aerial, unmanned ground, unmanned seaborne and related command, control and communications system businesses. Its KGS and US segments provide products, solutions and services for mission-critical National Security programs. KGS and US customers primarily include National Security-related agencies, the DoD, intelligence agencies and classified agencies, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Kratos Defense Poised for Growth Amid Defense Spending Shift
- Market Opportunity: Kratos Defense CEO Eric DeMarco highlights that the U.S. is entering a multi-year defense recapitalization cycle, with a potential $25 billion annual opportunity arising from a mere 10% shift in procurement spending from traditional security suppliers to smaller firms like Kratos.
- Product Innovation: Kratos is collaborating with Northrop Grumman to develop the autonomous XQ-58 Valkyrie drones, with expectations for the project to transition from mission evaluation to low-rate production and eventually full-rate production, potentially leading to significant annual demand.
- Financial Outlook: Although Kratos has not included expected Valkyrie drone production contributions in its base financial forecasts for fiscal years 2026 or 2027, there is a real chance for upside surprises for shareholders if Marine Corps procurement accelerates faster than anticipated.
- Growth Potential: Management anticipates that the company's hypersonics portfolio will emerge as a significant near-term growth driver, projecting over $1 billion in revenue by 2028, despite facing execution risks and margin pressures.
See More
Drone Dominance Program Launches
- Program Overview: The U.S. Department of Defense's Drone Dominance Program (DDP), valued at $1.1 billion, aims to enhance drone technology through a four-phase procurement process to address modern battlefield threats, reflecting the government's commitment to rapid procurement and technology alignment.
- New Procurement Philosophy: Secretary of Defense Pete Hegseth emphasizes that procurement will no longer be hindered by traditional bureaucratic constraints, aiming to buy effective drones quickly and at scale to ensure U.S. dominance in the drone sector, thereby enhancing 'America's Arsenal of Freedom.'
- Trial Phase: The first evaluation event, 'Gauntlet I,' is set for February 18, 2025, at Fort Benning, where military operators will directly control vendor systems, with approximately $150 million in prototype delivery orders expected to be issued post-evaluation, marking an acceleration in the procurement process.
- Future Outlook: As the DDP progresses, unit prices are expected to decrease while production volumes soar, with the Department of Defense clearly stating that funding is steady and the competition has begun, indicating that selected drones will be rapidly deployed to the front lines within five months.
See More
The Rise and Transformation of Physical AI
- Physical AI Transformation: Bank of America analyst Martyn Briggs highlights that the rise of Physical AI is underway, projected to drive a trillion-dollar market shift as value transitions from digital models to physical machines like robots, autonomous vehicles, and drones, marking a significant shift of intelligence from screens to machines.
- Humanoid Robot Production: Over 50 companies are developing humanoid robot platforms, with shipments expected to grow from tens of thousands today to millions annually over the next decade, driven by labor shortages and falling component costs, which will transform operations in manufacturing and logistics.
- Autonomous Driving Adoption: Robotaxis are operational in multiple cities, and advanced driver-assistance systems are set to achieve mass adoption in China by 2030, with hardware cost reductions significantly lowering ride-hailing and freight costs, thus transforming mobility into a software-defined, AI-driven platform.
- Investment Opportunities: Bank of America has highlighted 15 publicly traded companies exposed to Physical AI, including Nvidia, Tesla, and Qualcomm, which are leading in chips, robotics, mobility, and sensing, expected to spearhead this transformative wave.
See More
Kratos Secures $65 Million Defense Contracts
- Significant Contract Value: Kratos Defense & Security Solutions announced new contracts valued at approximately $65 million, focusing on designing and developing simulators for warfighter training, which not only enhances the company's market position in the defense sector but also reflects strong demand for its innovative technologies.
- Multi-Platform Support: The new contracts involve delivering training systems for various aircraft, including the Army's CH47F Chinook and UH-60M Blackhawk helicopters, demonstrating the company's commitment to providing cost-effective training solutions that enhance strategic importance in military operations.
- Strong Stock Performance: Despite mixed overall market performance, Kratos stock rose 4.31% to $100.30, indicating positive investor interest driven by specific company news, while shares have increased by 198.01% over the past 12 months, positioning the company favorably.
- Optimistic Future Outlook: Investors are looking forward to the earnings report on February 25, 2026, with an EPS estimate of $0.13 and revenue expected to reach $327.81 million, reflecting confidence in the company's growth potential moving forward.
See More
Kratos Defense Stock Bounces After Contract Wins
- Contract Wins: Kratos Defense announced it has secured contracts worth $65 million for designing and developing simulators and other solutions, showcasing its ongoing competitiveness in the military drone sector.
- Training Support: The contracts focus on avionics maintenance training for U.S. Army CH47F and UH-60M helicopters, indicating Kratos's strategic importance in supporting operations and maintenance of key aircraft platforms.
- Revenue Impact: If these contracts are realized in fiscal 2026, they could lead to approximately a 5% increase in annual revenue for Kratos; however, if spread over five years, the boost would only be about 1%, significantly affecting investor expectations for the company's future.
- Market Reaction: Despite a 2% rise in stock price, investor uncertainty regarding the specifics of the contracts suggests a cautious market outlook for Kratos, highlighting the need for the company to provide more clarity to bolster investor confidence.
See More
Kratos Wins Contracts Worth $65 Million
- Contract Value: Kratos Defense & Security Solutions announced it has secured contracts worth approximately $65 million, which will positively impact the company's financial health and strengthen its market position in the defense and security sector.
- Market Impact: The acquisition of these contracts not only enhances Kratos' revenue outlook but may also attract more investor interest in its future business developments, further solidifying its standing in the competitive defense market.
- Strategic Significance: By successfully winning these contracts, Kratos demonstrates its competitive advantages in technology and services, which is expected to drive more similar opportunities in future projects, leading to sustainable growth.
- Industry Outlook: With defense spending on the rise, Kratos' new contracts will enable it to better meet customer demands while laying a foundation for future technological innovations and market expansions.
See More
Kratos Defense Poised for Growth Amid Defense Spending Shift
- Market Opportunity: Kratos Defense CEO Eric DeMarco highlights that the U.S. is entering a multi-year defense recapitalization cycle, with a potential $25 billion annual opportunity arising from a mere 10% shift in procurement spending from traditional security suppliers to smaller firms like Kratos.
- Product Innovation: Kratos is collaborating with Northrop Grumman to develop the autonomous XQ-58 Valkyrie drones, with expectations for the project to transition from mission evaluation to low-rate production and eventually full-rate production, potentially leading to significant annual demand.
- Financial Outlook: Although Kratos has not included expected Valkyrie drone production contributions in its base financial forecasts for fiscal years 2026 or 2027, there is a real chance for upside surprises for shareholders if Marine Corps procurement accelerates faster than anticipated.
- Growth Potential: Management anticipates that the company's hypersonics portfolio will emerge as a significant near-term growth driver, projecting over $1 billion in revenue by 2028, despite facing execution risks and margin pressures.
See More
Drone Dominance Program Launches
- Program Overview: The U.S. Department of Defense's Drone Dominance Program (DDP), valued at $1.1 billion, aims to enhance drone technology through a four-phase procurement process to address modern battlefield threats, reflecting the government's commitment to rapid procurement and technology alignment.
- New Procurement Philosophy: Secretary of Defense Pete Hegseth emphasizes that procurement will no longer be hindered by traditional bureaucratic constraints, aiming to buy effective drones quickly and at scale to ensure U.S. dominance in the drone sector, thereby enhancing 'America's Arsenal of Freedom.'
- Trial Phase: The first evaluation event, 'Gauntlet I,' is set for February 18, 2025, at Fort Benning, where military operators will directly control vendor systems, with approximately $150 million in prototype delivery orders expected to be issued post-evaluation, marking an acceleration in the procurement process.
- Future Outlook: As the DDP progresses, unit prices are expected to decrease while production volumes soar, with the Department of Defense clearly stating that funding is steady and the competition has begun, indicating that selected drones will be rapidly deployed to the front lines within five months.
See More
The Rise and Transformation of Physical AI
- Physical AI Transformation: Bank of America analyst Martyn Briggs highlights that the rise of Physical AI is underway, projected to drive a trillion-dollar market shift as value transitions from digital models to physical machines like robots, autonomous vehicles, and drones, marking a significant shift of intelligence from screens to machines.
- Humanoid Robot Production: Over 50 companies are developing humanoid robot platforms, with shipments expected to grow from tens of thousands today to millions annually over the next decade, driven by labor shortages and falling component costs, which will transform operations in manufacturing and logistics.
- Autonomous Driving Adoption: Robotaxis are operational in multiple cities, and advanced driver-assistance systems are set to achieve mass adoption in China by 2030, with hardware cost reductions significantly lowering ride-hailing and freight costs, thus transforming mobility into a software-defined, AI-driven platform.
- Investment Opportunities: Bank of America has highlighted 15 publicly traded companies exposed to Physical AI, including Nvidia, Tesla, and Qualcomm, which are leading in chips, robotics, mobility, and sensing, expected to spearhead this transformative wave.
See More
Kratos Secures $65 Million Defense Contracts
- Significant Contract Value: Kratos Defense & Security Solutions announced new contracts valued at approximately $65 million, focusing on designing and developing simulators for warfighter training, which not only enhances the company's market position in the defense sector but also reflects strong demand for its innovative technologies.
- Multi-Platform Support: The new contracts involve delivering training systems for various aircraft, including the Army's CH47F Chinook and UH-60M Blackhawk helicopters, demonstrating the company's commitment to providing cost-effective training solutions that enhance strategic importance in military operations.
- Strong Stock Performance: Despite mixed overall market performance, Kratos stock rose 4.31% to $100.30, indicating positive investor interest driven by specific company news, while shares have increased by 198.01% over the past 12 months, positioning the company favorably.
- Optimistic Future Outlook: Investors are looking forward to the earnings report on February 25, 2026, with an EPS estimate of $0.13 and revenue expected to reach $327.81 million, reflecting confidence in the company's growth potential moving forward.
See More
Kratos Defense Stock Bounces After Contract Wins
- Contract Wins: Kratos Defense announced it has secured contracts worth $65 million for designing and developing simulators and other solutions, showcasing its ongoing competitiveness in the military drone sector.
- Training Support: The contracts focus on avionics maintenance training for U.S. Army CH47F and UH-60M helicopters, indicating Kratos's strategic importance in supporting operations and maintenance of key aircraft platforms.
- Revenue Impact: If these contracts are realized in fiscal 2026, they could lead to approximately a 5% increase in annual revenue for Kratos; however, if spread over five years, the boost would only be about 1%, significantly affecting investor expectations for the company's future.
- Market Reaction: Despite a 2% rise in stock price, investor uncertainty regarding the specifics of the contracts suggests a cautious market outlook for Kratos, highlighting the need for the company to provide more clarity to bolster investor confidence.
See More
Kratos Wins Contracts Worth $65 Million
- Contract Value: Kratos Defense & Security Solutions announced it has secured contracts worth approximately $65 million, which will positively impact the company's financial health and strengthen its market position in the defense and security sector.
- Market Impact: The acquisition of these contracts not only enhances Kratos' revenue outlook but may also attract more investor interest in its future business developments, further solidifying its standing in the competitive defense market.
- Strategic Significance: By successfully winning these contracts, Kratos demonstrates its competitive advantages in technology and services, which is expected to drive more similar opportunities in future projects, leading to sustainable growth.
- Industry Outlook: With defense spending on the rise, Kratos' new contracts will enable it to better meet customer demands while laying a foundation for future technological innovations and market expansions.
See More
