Two of the last frontiers for exploration are space and the oceans. It seems remarkable that space is far more advanced than the latter, but the crushing depths of the ocean present far greater challenges than the expanse of space.
As we have decades of experience going to the far reaches of the universe, there are also more investment opportunities. Thanks largely to SpaceX, space exploration is no longer the sole province of government, which has opened up numerous private sector investment opportunities.
Whether it is in launch vehicles, lunar probes, or rocket and satellite components, the list of available investment possibilities is rapidly growing. Listed below are three of the best space stocks any investor wanting to tap into the limitless potential of space exploration should consider buying today.
Key Points About This Article:
- Interest in space exploration has been revived by the significant growth and success of SpaceX, leading to renewed investment in space stocks.
- Here are three space stocks that offer compelling valuations, strong underlying fundamentals, and substantial growth opportunities that investors may want to look closely at.
- If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.
Rocket Lab USA (RKLB)
Rocket Lab USA (NASDAQ:RKLB) is the second-most-successful space stock after SpaceX. It has launched 52 of its Electron rockets into space and is planning for its 53rd launch on Sept. 17, weather permitting.
On those 52 rockets, Rocket Lab has carried 192 satellites into orbit though more than 1,700 satellites have been taken to space using the company’s technology. That’s because in addition to building launch vehicles, Rocket Lab also designs and manufactures spacecraft for others, makes satellite components, and designs space software.
Its Electron rockets are the second-most used space vehicles and Rocket Lab says they are the only reusable orbital-class small rockets. It emphasizes small because SpaceX’s Falcon 9 rockets are nearly three times larger than the Electron (and the Falcon Heavy is three Falcon 9 first-stage rockets).
Blue Origin‘s New Shepherd is also a fully reusable launch vehicle, but it is a suborbital rocket. Falcon 9 is also the only one capable of taking humans into space, but Rocket Lab’s next generation Neutron rocket is intended for manned, deep-space exploration.
Because of Rocket Lab USA’s success, its end-to-end space capabilities, and the promise of next-gen technology to carry it further into space, RKLB is one of the best space stocks to buy.
Redwire (RDW)
Space infrastructure stock Redwire (NYSE:RDW) is the next space stock to consider for your out-of-this-world portfolio. It designs and builds avionics, sensors, power solutions, various critical structures and mechanisms, along with radio frequency (RF) systems, platforms, and microgravity payloads. Redwire has its own string of successes to its credit, helping governments and their prime contractors with the technology needed for having people explore, live, and work in space.
For example, Redwire was contracted by aerospace giant Lockheed-Martin (NYSE:LMT) to help build advanced imaging capabilities for the Orion Camera System used by NASA’s Artemis program. Redwire also built the cameras used by Intuitive Machine‘s (NASDAQ:LUNR) lunar lander, which touched down on the Moon’s surface earlier this year.
The space infrastructure company was further contracted by Rocket Lab in May to provide antenna and RF hardware for its rockets that were contracted by the Space Development Agency.
Revenue is rapidly growing, up 41% over the first six months of the year and hitting $165.9 million. Although it still produces losses, it also generated pro forma adjusted EBITDA of $5.9 million in the first half of 2024. The quickly growing space stock is one worth buying now even as RDW stocks has more than doubled in value this year.
Procure Space ETF (UFO)
Okay, I may have chosen the exchange-traded fund (ETF) Procure Space ETF (NYSEARCA:UFO) for this list in part because of its ticker symbol. But it is also a stock that gives investors broad exposure to the entire constellation of space stocks, along with adjacent technologies.
In addition to the likes of Rocket Lab, Redwire, and Intuitive Machines, Procure Space ETF also counts amongst its holdings broadband mobile network provider AST SpaceMobile (NASDAQ:ASTS), its largest position; Sirius XM Holdings (NASDAQ:SIRI), Garmin (NYSE:GRMN), and Virgin Galactic (NYSE:SPCE).
The ETF sports a reasonable 0.75% expense ratio and net assets of $34.2 million. The stock trades at just over $18 per share, which is essentially flat over the last 12 months, but only 7.5% below its 52-week high.
The value of investing in an ETF is that it spreads out the risk over numerous companies (UFO has 35 separate holdings). You can also buy 32 shares of Procure Space for the same cost as a single share of Lockheed-Martin, — another of the ETF’s stocks — increasing your diversification. It represents a good diversified investment for long-term investors who seek to capitalize on interest in the private sector’s space race and space exploration.
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