On Wednesday, Kratos Defense & Sec reached an important technical milestone, seeing its Relative Strength (RS) Rating jump into the 80-plus percentile with an improvement to 83, up from 79 the day before.
IBD's proprietary rating tracks share price movement with a 1 (worst) to 99 (best) score. The score shows how a stock's price movement over the trailing 52 weeks stacks up against all the other stocks in our database.
History shows that the stocks that go on to make the biggest gains typically have an RS Rating of at least 80 as they begin their biggest price moves.
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Kratos Defense & Sec is now considered extended and out of buy range after clearing a 22.29 buy point in a third-stage cup with handle. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week line.
The company showed -8% earnings growth last quarter. Revenue increased 0%.
Kratos Defense & Sec holds the No. 27 rank among its peers in the Aerospace/Defense industry group. Heico Cl A, M-tron Industries and Heico Corp are among the top 5 highly rated stocks within the group.
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