Of all the best defense stocks for 2015 to buy, one is poised to see bigger gains than its much more established competitors.
And in a sector colored with big names like Raytheon Co. (NYSE: RTN) and Lockheed Martin Corp. (NYSE: LMT), this one little-known small-cap could outperform all of them.
That company is Kratos Defense & Security Solutions Inc. (Nasdaq: KTOS). Money Morning Chief Investment Strategist Keith Fitz-Gerald told FOX Business' "Varney & Co." viewers today (Monday) that he sees big moves for Kratos stock in 2015.
At a time when defense spending faces a lot of scrutiny for cost overruns and major projects are often written off as pork spending, Kratos is resigning itself to a niche role in the defense sector.
"They're doing systems integration work, they're very active in the [unmanned aerial vehicles] and drones, they're winning small contracts all over the place," Fitz-Gerald said today.
Kratos sticks to smaller ticket contracts, never exceeding $15 million. This is a much more politically feasible trail to blaze at a time when Congress has been looking to cut the budget all over the place.
KTOS stock has been beaten up this year. From its summer peak of $9, the stock was trading at $4.28 last week. This is a 52% decline.
But it's since rebounded slightly, trading at $5.05 when markets closed Friday.
Fitz-Gerald said it's underpriced, and is ready to soar in 2015. Watch the clip below to see his 2015 Kratos stock forecast.
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