Top 5 Mid Cap Stocks to Own for Decades According to Hedge Funds

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

Market Capitalization: $9.95 Billion

Stock Upside Potential: 88.73%

Number of Hedge Fund Holders: 46

Kratos Defense & Security Solutions Inc. (NASDAQ: KTOS) is one of the top mid-cap stocks to own for decades, according to hedge funds. On July 1, Wedbush initiated coverage of Kratos Defense & Security Solutions Inc. (NASDAQ: KTOS) with an Outperform rating and an $85 price target.

The positive stance underscores the research firm’s confidence in the company’s prospects as a merchant arms supplier to the US defense complex. The company sells critical subsystems, engines, hypersonic vehicles and ground software to prime and new entrant players. While the market views Kratos as a drone company jostling for platform dominance, management has built a robust business across hypersonic missile defense space and microelectronics.

Kratos Defense & Security Solutions’ edge also stems from its decision to sell its solutions and products to every player in the defense sector rather than act as a prime contractor. The strategy is paying off as revenue has grown by 22% over the past 12 months.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is an American technology company that develops and manufactures transformative, affordable systems for the U.S. Department of Defense, allied nations, and commercial enterprises. They specialize in hardware-software convergence, focusing on rapid development rather than traditional, lengthy military procurement cycles.