Why Kratos (KTOS) Is Spiking Today

NEW YORK (TheStreet) -- Kratos Defense & Security Solutions (KTOS) was spiking 13.6% to $8.21 Monday after the company announced a its Defense & Rocket Support Services division won a five-year SeaPort-e IndefiniteDelivery, Indefinite Quantity Multiple Award Contract.

The contract comes from the Naval Surface Warfare Center, Dahlgren, and covers seven zones with a maximum value of $7.92 billion. The contract means the company can "continue providing support to the U.S. Navy and Marine Corps with our full range of engineering and technical capabilities as a prime contractor," Dave Carter, president of Kratos' DRSS division said in a press release.

Under the contract, Task Order can be issued by the Naval Sea Systems Command, Naval Air Systems Command, Space and Naval Warfare Systems Command, Naval Supply Systems Command, Military Sealift Command, Naval Facilities Command, Strategic Systems Programs, Office of Naval Research, and the United States Marine Corps.

TheStreet Ratings team rates KRATOS DEFENSE & SECURITY as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate KRATOS DEFENSE & SECURITY (KTOS) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its solid stock price performance. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."

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