Hello, Thanks for signing up for MarketBeat Daily Ratings—we’re excited to have you on board. Every weekday, you’ll get a curated summary of new “Buy” and “Sell” ratings from Wall Street’s top-rated analysts, the latest stock news, and bonus investing content—all delivered straight to your inbox. You’re just two quick steps away from completing your sign-up: 1. Make sure our emails go to your inboxGmail users:
Mobile: Tap the three dots (…) in the top right and select Move to Inbox or Move to Primary
Desktop: Click the folder icon at the top and select Move to Inbox or Primary Apple Mail users:
Tap our email address at the top (next to From: on mobile), then select Add to VIP Other providers:
Reply to this message and add newsletters@analystratings.net to your contacts 2. Confirm your subscriptionClick this link to confirm your subscription. This verifies your account and ensures you receive your newsletters without interruption instead of getting stuck in your spam filter. Confirm your subscription here. After you confirm, feel free to download our popular free report, "7 Stocks to Buy and Hold Forever" with this link. Thanks again for subscribing—we look forward to being part of your investing journey. 
Matthew Paulson
Founder and CEO, MarketBeat. P.S. If you didn’t mean to subscribe, no problem—you can unsubscribe here.
Special Report
Defense Budget Expansion: 3 Mid-Cap Names in a Sweet SpotAuthored by Chris Markoch. Article Posted: 4/20/2026. 
Key Points
- A proposed surge in defense spending is accelerating demand for next-generation military technologies.
- Mid-cap defense companies offer growth potential as they gain contracts and visibility.
- Autonomous systems, cybersecurity, and shipbuilding are key themes driving long-term upside.
- Special Report: Elon Musk: This Could Turn $100 into $100,000
In early April, the Trump administration proposed an increase in defense spending to $1.5 trillion for 2027. This was the largest such request in decades and would mark a 44% increase for the Pentagon. At first glance it would be easy to connect this request to the Iran war. However, the administration floated its desire for a larger defense budget before the conflict began. The reason is both practical and strategic: the current military infrastructure is not well suited to the nature of future warfare—or at least not as well suited as it could be. Preparing it will require more investment in next-generation shipbuilding as well as in autonomous defense solutions.
The U.S. government pumped more than $1 billion into Intel. The stock popped 128%. It pumped $400 million into MP Materials. The stock popped 200%. It bought 10% of Trilogy Metals. The stock popped 500%. And now, Trump has chosen this AI stock for a $1 billion payday. Click here for the full story and stock pick (free).
This is a principal reason why defense and aerospace stocks have led the market higher in 2026, including big names like Lockheed Martin (NYSE: LMT) and Northrop Grumman (NYSE: NOC). However, there’s a growing opportunity in mid-cap stocks that have less visibility than their major index counterparts and are still being repriced. Kratos Defense: A Pure Play on Autonomous Warfare Growth The pursuit of unmanned autonomous technology in the defense sector will require both offensive and defensive solutions. Kratos Defense & Security Solutions (NASDAQ: KTOS) covers both areas. On the defensive side, Kratos is one of the largest producers of counter-unmanned aerial systems, or C-UAS. This market is projected to grow from roughly $6.64 billion in 2025 to about $20.31 billion by 2030, representing a compound annual growth rate near 25%. In March and April 2026, the company announced contracts totaling more than one-third of its fiscal year 2025 (FY2025) revenue of $1.35 billion. On the offensive front, Kratos’ XQ-58 Valkyrie has been adopted by the U.S. Marine Corps, which continues to procure additional Valkyries and could move Kratos closer to being a program of record for the Department of Defense. KTOS is down about 40% from its year-to-date (YTD) high, with institutional selling outpacing buying. Still, analysts are projecting earnings growth of roughly 38% and continue to raise price targets. That means investors may be getting a more attractive entry point for a stock that is still up more than 100% over the last 12 months. Leidos: Software and Cybersecurity Powering Modern DefenseThe need for offensive and defensive solutions extends to software as well as hardware. Leidos (NYSE: LDOS) represents the software side of the modern defense industry. The company focuses on modernizing U.S. government IT systems, cybersecurity, engineering and professional services, with offerings in IT, analytics and mission-critical systems. In 2025, Leidos was awarded a multi-year contract with the U.S. Transportation Security Administration. The contract's timing contributed to the company's disappointing Q4 2025 earnings report. Leidos missed revenue expectations in part because of the six-week government shutdown in 2025. Looking ahead, management has pointed to the Golden Dome project as a potential catalyst in 2026 and beyond. The company also plans to triple capital expenditures to $350 million, a move that appears prudent to expand production capacity and upgrade classified facilities. That plan comes as LDOS is down about 20% from its YTD high amid concerns that advances in artificial intelligence (AI) could disrupt cybersecurity firms. Analysts have trimmed some price targets, but the consensus price target for LDOS is $208.27, more than 30% above the stock’s mid-April price. Huntington Ingalls: Shipbuilding Strength Meets Next-Gen TechHuntington Ingalls (NYSE: HII) combines traditional shipbuilding expertise with next-generation technology. The company is best known for shipbuilding, a capability that dovetails with the America’s Maritime Action Plan (MAP)—a sweeping blueprint to update and expand U.S. shipbuilding capacity. Even before the MAP announcement, Huntington Ingalls was forecasting up to $50 billion in new government contracts over the next 24 months. For context, the company generated just over $12 billion in 2025. Huntington Ingalls is also building a Mission Technologies segment that includes AI, cyber defense and unmanned systems. That segment accounted for about a quarter of the company’s revenue in 2025 and is expected to grow in coming years. HII is the momentum pick of this group. The stock is up roughly 15% in 2026 and is trading slightly above its consensus price target of $383.22. Analysts have been raising price targets ahead of the company’s May 7 earnings report, suggesting there may be additional upside for a stock that has attracted significant interest from institutional investors. |
0 Response to "We're excited to have you on board"
Post a Comment