Editor's Note: Tech legend Jeff Brown — the same man who picked Tesla before it soared 2,150% — says while everyone thinks Elon's empire is crumbling, there's a $25 trillion revolution brewing that could 10X Tesla's past success. Click here to see what he uncovered or read more below...
Dear Reader,
Elon’s worst nightmare has come to life.
First, we saw reports of the worst car sales drop in over a decade…
Then, President Trump eliminated the tax credits barely keeping Tesla afloat…
And finally, Tesla just became the most hated car company in America.
Almost anywhere you look, it looks like this is truly “The End of Tesla…”
But mark my words, if you only pay attention to the headlines…
You will miss out on the chance of a lifetime.
Because a revolutionary AI breakthrough inside Tesla’s research labs — one that Forbes calls “a multi-trillion-dollar opportunity” — is about to blindside EVERYONE.
And while most people are thrilled watching Elon's empire crumble…
The simple truth is we’re about to witness the greatest comeback in corporate history…
The birth of a brand new 25,000% growth market…
All thanks to Tesla’s greatest breakthrough yet — the birth of “Manifested AI.”
I've put together an urgent briefing to show you all the details. Click here now to see it for free.
Regards,
Jeff Brown
Founder & CEO, Brownstone Research
P.S. They laughed at me in 2018 when I said 'buy Tesla' at $23. Those who listened could have made 21 times their money. Don't let them laugh at you for missing this one. Go here now to see how you can get on this 250X Manifested AI boom for as little as $50.
This Defense Stock Is Up 113% This Year—Is It Still a Buy?
Written by Leo Miller. Published 9/17/2025.
Key Points
- Karman has had an explosive start to its stock market journey, already achieving more than double-bagger upside.
- Analysts at Raymond James think the stock still has a lot of room to run, projecting more than 50% upside.
- Karman's vertically integrated business is highly promising, but the stock's lofty valuation is also a cause for concern.
In 2025, mid-cap defense stock Karman (NYSE: KRMN) has quietly taken the market by storm.
As of the Sept. 15 close, Karman has notched a nearly 113% year-to-date return—the second-highest among U.S. aerospace and defense stocks with market caps above $2 billion. Only Kratos Defense & Security Solutions (NASDAQ: KTOS) outperforms it so far this year.
$100 Trillion "AI Metal" Found in American Ghost Town (Ad)
Jeff Brown recently traveled to a ghost town in the middle of an American desert…
To investigate what could be the biggest technology story of this decade.
In short, he believes what he's holding in his hand is the key to the $100 trillion AI boom…
And only one company here in the U.S. can mine this obscure metal.
One factor behind Karman's under-the-radar status is its newness. Since its February IPO, the stock surged 36% on day one. Including that jump, Karman's 2025 gain climbs to nearly 190%.
With such explosive gains, investors may wonder if the rally has already run its course. Fortunately, Raymond James recently set a $100 price target on Karman, implying roughly 57% upside from current levels.
Given the excitement, should investors consider adding KRMN to their portfolios?
A One-Stop Shop for Critical Missile and Space Systems
Karman supplies mission-critical systems for prime defense contractors, focusing on missile and space programs. These aren't auxiliary components—without Karman's hardware and software, entire projects risk failure.
Its vertical integration—from initial design through manufacturing—makes Karman a one-stop shop. This setup boosts supply chain efficiency for clients, allowing Karman to command premium pricing and stronger margins. Accordingly, gross margin reached nearly 41% last quarter, placing it among the top five U.S. defense firms with market caps above small-cap.
Customer relationships at Karman tend to be "sticky." Switching vendors mid-program is costly and complex, so most clients stick with Karman once a contract is awarded. In 2023, 87% of revenue came from sole-source or single-source contracts, underscoring the uniqueness and difficulty of replacing Karman's capabilities.
Profitability, Growth, and a Backlog That Signals More Upside
On the financial front, Karman has delivered strong results. Revenue growth accelerated to 35.3% in Q2 2025, up from 18.5% in Q4 2024, while net income climbed 48% to $6.8 million. The company is already profitable on a GAAP basis, with plenty of room to expand earnings.
Its funded backlog jumped 36% to $719 million, offering clear visibility into future revenue—about 1.6 times the $455 million midpoint of 2025 guidance.
Cash flow from operations was negative $17.4 million, largely due to an $18 million increase in accounts receivable. This reflects recognized revenue awaiting collection—a common pattern in defense contracting. Historically, Karman's operating cash flow trends positive, so this metric deserves monitoring but isn't an immediate red flag.
High Growth Meets High Valuation: What Comes Next?
MarketBeat's consensus price target on Karman is $60.60, implying about 5% downside from its $63.80 close on Sept. 15. Aside from Raymond James, no analyst currently pegs Karman above that level.
The stock trades at roughly 123x forward price-to-earnings, a steep valuation even for high-growth names. Still, if revenue and backlog momentum hold, further upside wouldn't be surprising.
Overall, Karman is a high-quality business but carries elevated risk at current prices. A meaningful pullback, however, could turn it into a compelling opportunity.
This email message is a sponsored email from Brownstone Research, a third-party advertiser of InsiderTrades.com and MarketBeat.
If you need assistance with your account, please don't hesitate to email our South Dakota based support team at contact@marketbeat.com.
If you no longer wish to receive email from InsiderTrades.com, you can unsubscribe.
Copyright 2006-2025 MarketBeat Media, LLC. All rights protected.
345 North Reid Place, Sixth Floor, Sioux Falls, S.D. 57103. United States..
No comments:
Post a Comment