12 Best Russell 2000 Stocks to Buy Now

2. Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)

Year-To-Date Returns: 162.74%

Market Capitalization: $11.70 billion

Number of Hedge Fund Holders: 17

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is one of the best Russell 2000 stocks to buy now. On August 14, BTIG upgraded its rating on Kratos from “Neutral” to “Buy” and set a price target of $80. BTIG cited Kratos’ selection for the U.S. Marine Corps’ MUX TACAIR unmanned aerial systems program as the primary reason for the upgrade. Analyst Andre Madrid noted that this development addresses previous concerns about the company’s lack of a sizable program of record with steady procurement volumes.

BTIG expressed confidence that Kratos could see substantial growth in its Unmanned Systems division in the coming year. This will come on the back of funding earmarked for the MUX TACAIR program in FY2026. The firm also believes that a broader “approximately $8.8 billion unmanned request” will enhance Kratos’ bottom line. BTIG highlighted potential upside across other segments of Kratos’ portfolio, specifically mentioning opportunities in Kratos Turbine Technologies, C5ISR/Modular Systems, hypersonics, and Microwave Electronics.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is a national security technology company. It develops and manufactures unmanned aerial systems, satellite communications, missile defense systems, and cybersecurity solutions for the U.S. Department of Defense and allied nations. Kratos operates across multiple facilities in the United States with a workforce of over 3,500 employees.