Kratos (KTOS) shares ended the last trading session 6.5% higher at $24.82. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.6% gain over the past four weeks.

Per a report published by MarketBeat, several analysts, including those from Truist Financial and JMP Securities, have reiterated their "buy" ratings for Kratos Defense and also raised target prices for this stock. This must have boosted investors’ confidence in KTOS, thereby resulting in the latest uptick in its share price.

This military contractor is expected to post quarterly earnings of $0.08 per share in its upcoming report, which represents a year-over-year change of -33.3%. Revenues are expected to be $278.47 million, up 1.4% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Kratos, the consensus EPS estimate for the quarter has been revised 9.1% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on KTOS going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Kratos is part of the Zacks Aerospace - Defense Equipment industry. Leonardo DRS, Inc. (DRS), another stock in the same industry, closed the last trading session 5.2% higher at $29.70. DRS has returned -1.1% in the past month.

For Leonardo DRS, Inc. , the consensus EPS estimate for the upcoming report has changed -0.9% over the past month to $0.20. This represents no change from what the company reported a year ago. Leonardo DRS, Inc. currently has a Zacks Rank of #2 (Buy).

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