Palantir Technologies (PLTR) has captured Wall Street’s imagination with its AI-powered defense solutions in 2024. The tech stock has surged over 300% in the past year, valuing the company at a market capitalization of $165 billion. Palantir is forecast to end 2025 with sales of $3.5 billion and free cash flow of $1.16 billion. This means that PLTR is among the most expensive stocks on the planet. Plus, the average target price for Palantir stock is $46.41, which is 40% below current levels.
However, San Diego-based Kratos Defense & Security (KTOS) is another defense contractor building a portfolio of next-generation military technologies. It offers solutions in verticals such as unmanned aerial systems, space communications, and cybersecurity.
