5 Best Small Cap Defense Stocks to Buy Now

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

Market Cap as of April 27: $1.61 Billion

Number of Hedge Fund Holders: 18

Kratos Defense & Security Solutions, Inc (NASDAQ:KTOS) operates as a contractor for the U.S. department of defense and offers directed-energy weapons, unmanned systems, missile defense, training and combat systems among other products for the defense industry. As of April 27, Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) has returned 27.02% to investors on a year-to-date basis and has a market cap of $1.61 billion. The stock is placed fourth among the best small-cap defense stocks to buy now.

On February 24, Canaccord analyst Austin Moeller upgraded Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) to Buy from Hold and raised his price target on the stock to $14 from $11.50.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) was spotted on 18 investors’ portfolios at the close of Q4 2022 that held collective stakes worth $133.4 million in the company. Of those, ARK Investment Management was the most prominent shareholder and held a position worth $79.9 million.