Drone makers Aerovironment (AVAV) and Kratos Defense (KTOS) have secured major Pentagon deals and integrated advanced technologies into their products. Geopolitical tensions have led to increased defense spending globally, with President Trump proposing a 50% increase in defense spending by 2027. However, both AVAV and KTOS stocks have high valuations, and profit-taking may be a wise move. AVAV reported revenue growth of 4% in Q2, while KTOS saw a 200% rise in net income in Q3. Both companies have landed impressive deals and offer top-notch technology. Despite recent gains driven by headlines, their valuations are a concern, making profit-taking a prudent move.

Read more at Barchart: Cathie Wood Is Selling These 2 Future-Focused Defense Stocks. Should You?