TendieTensor TendieTensor
You’re browsing as
Guest
Free Preview
Sign in/sign up to unlock all features.

News  ›  The Motley Fool

Why Kratos Defense Stock Keeps Going Up Today

The Motley Fool Logo The Motley Fool By Rich Smith
Why Kratos Defense Stock Keeps Going Up Today

Kratos Defense stock rose 3.31% on January 12, 2026, as the company announced plans to build a new 40,000 square foot factory in Birmingham, Alabama to expand weapons production. The move aligns with President Trump's new defense policy calling for a $1.5 trillion defense budget expansion, contingent on defense contractors committing capital investments rather than dividends or buybacks. However, the analyst notes concerns about the stock's extremely high valuation at 800 times trailing earnings and lack of free cash flow.

Insights
KTOS   positive

Stock gained 3.31% on announcement of new factory expansion aligned with Trump's defense spending priorities. Company is positioning itself favorably for increased defense contracts and government spending. However, sentiment is tempered by significant valuation concerns (800x trailing earnings) and lack of free cash flow.