KRATOS DEFENSE & SECURITY SOLUTIONS, INC.

14.65 +0.08 (+0.55%) Buy

KTOS investors holding on and letting their profits run

13 min read

KTOS was among the best performers today. On a longer term basis, investors in KRATOS DEFENSE & SECURITY SOLUTIONS, INC. made -0.04% per day. Tuesday's performance of +0.55% was a significant outperformance compared to it's daily average.

[Themes containing KTOS]

Buy-and-Hold investors in KTOS experienced a maximum drawdown of -18.67% over the last three months. It returned -0.41% during this flat trending period. There were both Long and Short signals during this period, while the long signals were marginally more profitable than the short signals.

Trend

KTOS has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 7 days, KTOS outperformed the SP500 index on 51% days.

During the last three months KTOS delivered losses on 54% days. However, it still managed to end this period in a profit. It's best return during this period (of +13.5%) was on Wednesday, 7 Nov, 2018. While it's worst loss in the same period (of -5.6%) was on Tuesday, 20 Nov, 2018. There was initially a bearish trend during this period which started on 2 Oct, 2018 and went on till 5 Oct, 2018. The trend delivered -6.6% losses to investors. This was followed by a bullish trend that started on 30 Oct, 2018 and ended on 8 Nov, 2018. This bullish trend delivered +25.98% to investors.

KTOS had 9 profitable and 3 loss making months over the last year. KTOS was profitable in more months than SP500 index. KTOS was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -15.85% compared to -7.28% returned by SP500 index in Oct 2018. KTOS had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year.

"Investors must keep in mind that there's a difference between a good company and a good stock. After all, you can buy a good car but pay too much for it .

KTOS is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in KTOS's volatility from 12 Sep, 2018 to 8 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 14 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that KTOS has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

SP500 index has more chance of extreme outcomes than KTOS. Therefore, SP500 must receive a lower allocation than KTOS in your portfolio. SP500 index usually has shorter drawdown period than KTOS.

Based on your interest in KTOS you may find it interesting to know that TNDM has shown remarkable performance this year and deserves to be on every investors' watchlist.

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