While many exciting ideas compete for your dollars in the capital market, few sectors are as groundbreaking as space stocks to buy. At the core of this narrative is the push for exploring new boundaries and possibilities. It’s really one of the few frontier arenas available.
From an individual investor’s perspective, space stocks to buy offers incredible diversification. That’s especially the case if you’re young and just staring out in your investing journey. The ideas mentioned here – especially the large-capitalization plays – will probably outlive all of us. In other words, these enterprises may provide cradle-to-grave type of expansion.
Most importantly from a financial perspective, space-related enterprises provide a critical impetus for economic growth. As well, the synergies that materialize may spark new markets. According to McKinsey & Company, the global space economy could be worth $1.8 trillion by 2035. Last year, the sector reached a valuation of $630 billion.
If you’re ready to launch your portfolio into orbit, you’ve come to the right place. Below are enticing space stocks to buy.
Lockheed Martin (LMT)
One of the giants in the aerospace and defense industry, Lockheed Martin (NYSE:LMT) might not be the most exciting idea among space stocks to buy. However, it’s one of the most predictable. Lockheed offers a range of sector-related solutions, particularly in satellite development and space exploration. Also, LMT stock may benefit cynically from rising geopolitical tensions.
At the moment, Lockheed has been flat this year, gaining just under 1%. Further, analysts aren’t especially enthralled with the idea, rating LMT a consensus hold. Further, the average price target sits at $486.85, which implies only about 6% upside potential. However, the most optimistic target calls for a price per share of $551. Therefore, it’s worth considering among space stocks to buy.
Financially, Lockheed posted net income of $6.78 billion or $27.32 per share in the trailing 12 months (TTM). Revenue in this cycle hit $69.64 billion. For fiscal 2024, covering experts anticipate earnings per share of $26.27, which represents a slight dip. However, sales may rise modestly to $69.76 billion, up 3.2%. Further, revenue may bump up again in fiscal 2025 to $72.36 billion.
Finally, Lockheed offers a forward dividend yield of 2.74%. It’s not exciting but it keeps the boat steady.
Northrop Grumman (NOC)
Another top-tier player within the aerospace and defense sector, Northrop Grumman (NYSE:NOC) presents a tempting but higher-risk idea. On the positive side, Northrop offers innovations regarding space systems. This includes satellite technology and space launch systems. It may also be relatively undervalued, trading at 17.36X forward earnings. For the first quarter of this year, this metric averaged 19.42X.
However, one can also see the reason why NOC stock appears discounted. Since the start of the year, shares slipped more than 9%. Most of the volatility stemmed from the trailing month. Nevertheless, analysts appear eager to collect on the weakness. They rate shares a consensus moderate buy with a $506.08 average price target, implying 19% upside potential.
During the TTM period, Northrop posted net income of $2.16 billion or earnings of $14.35 per share. Revenue in the cycle hit $40.12 billion. Presently, its quarterly sales growth rate (year-over-year) stands at 8.9%. For fiscal 2024, experts believe that EPS may rise 6.4% to hit $24.78. On the top line, sales may expand by 4.6% to land at $41.11 billion.
Further, continued decent growth in fiscal 2025 – where EPS may reach $27.50 on sales of $43.11 billion – appears to bode well for NOC. It’s one of the space stocks to buy.
Boeing (BA)
Easily the most controversial idea among the major space stocks to buy, Boeing (NYSE:BA) is risky. Sure, it commands a massive footprint in the broader aerospace arena. However, its civilian airliner business is taking a beating due to the reputational damage. A few years ago, people (rightfully) fretted about potentially dangerous anti-stall software. Now folks are worried about doors blowing off midflight.
Unsurprisingly, BA stock is down more than 30%. It’s ugly, no doubt about it. However, if we divorce the company from its ongoing troubles, Boeing does command incredible acumen in spacecraft and satellite systems. It’s also relatively undervalued. Right now, shares trade at 1.39X trailing-year sales. During Q4 2023, this metric stood at 2.08X.
Now, during the TTM period, Boeing suffered a net loss of $2.15 billion or $3.53 per share in the red. Revenue in the period reached $76.44 billion. However, the quarterly revenue growth rate slipped to 7.5% below parity.
Fiscal 2024 may see a massive erosion in EPS and only modest growth in sales. However, analysts project a 20% expansion in revenue to $94.51 billion in fiscal 2025. Could investors and customers forgive Boeing by then? It’s possible.
Rocket Lab USA (RKLB)
Let’s get into the real spicy stuff for space stocks to buy, beginning with Rocket Lab USA (NASDAQ:RKLB). Based in Long Beach, California, Rocket Lab offers specialties regarding small satellite launch services and space systems. It’s been generating significant momentum in the news cycle over the past several months. After plunging from its market debut, RKLB stock is attempting to break out of a long-term horizontal trend line.
In the trailing month, shares have gained almost 12% so we may getting there. Plus, RKLB stock is still trading at a relative discount. Currently, shares trade hands at 8.43X trailing-year revenue. That’s pricey relative to the underlying aerospace and defense sector. However, the multiple run up to an average reading of 11.19X in Q4 2023.
During the TTM period, Rocket Lab incurred a net loss of $181.21 million but generated revenue of $282.46 million. Its present quarterly revenue growth rate stands at 69%. For fiscal 2024, sales may rise 74.3% to hit $426.23 million. Further, the blue-sky target calls for $447.27 million.
By fiscal 2025, the top line could expand robustly to $588.89 million. And here, the high-side estimate calls for $690.1 million. It’s risky but oh so tempting.
Spire Global (SPIR)
At first glance, Spire Global (NYSE:SPIR) might not seem like the most promising idea among space stocks to buy. With a market cap of under $269 million, SPIR stock is tiny. It can go either way. So far, though, that direction has been pointed northward. A space-to-cloud data and analytics firm, Spire specializes in the tracking of global data sets powered by nanosatellites.
With so many launches scheduled to take place over the next few years, Spire could see explosive demand. That’s probably the reason why analysts rate shares a unanimous strong buy. Further, the average price target stands at $18, implying nearly 73% upside potential. Better yet, the high-side estimate calls for $20 per share, which projects over 92% growth.
In the TTM period, Spire incurred a net loss of $71.54 million. However, sales in the cycle reached $107.22 million. Currently, the company’s quarterly sales growth rate comes in at 6.3%. For fiscal 2024, analysts anticipate a favorable mitigation of red ink to $1.04 (previously $3.27). Also, revenue may land at $124.81 million, up 18.1%.
Enticingly, sales could also fly in the following year to $154.85 million. If you don’t mind volatility risk, SPIR is one of the space stocks to buy.
Planet Labs (PL)
Easily another high-risk, high-reward entity among space stocks to buy, Planet Labs (NYSE:PL) presents a specialty profile in the sector. The company focuses on Earth observation and satellite imagery. It further provides data analytics services. Notably, Planet Labs offers a range of applications, from scientific (understanding how our planet is evolving) to military and defense (basically spying on our enemies).
At the moment, PL stock is priced below two bucks. This translates to a market cap of under $544 million. It’s a bit better than some other speculative space stocks to buy but not by much. However, with the lowly price point comes a key advantage: relative undervaluation. Right now, shares trade at 2.32X trailing-year revenue. Back about one year ago, this metric stood at 4.91X.
In the TTM period, Planet posted a net loss of $135.36 million or 47 cents per share. However, revenue in the cycle hit $228.43 million. Its current quarterly sales growth rate clocks in at 14.7%. For the current fiscal year, analysts believe there will be a slight mitigation of losses per share to 22 cents. More importantly, revenue may rise 15.4% to hit $254.78 million.
BlackSky Technology (BKSY)
One of my favorite space stocks to buy from a narrative standpoint, BlackSky Technology (NYSE:BKSY) is a literal penny stock. At the time of writing, shares trade hands at 93 cents a pop. Further, the market cap sits at $136.23 million. That’s nothing and thus, it presents wild volatility risks. Still, I appreciate the underlying business: real-time geospatial intelligence and satellite imagery.
With BlackSky, the company brings myriad applications to the table, including those covering scientific and defense/security needs. Analysts really dig the idea, which is a good part of why I’m bullish on it. Experts rate BKSY stock a unanimous strong buy. Moreover, the average price target clocks in at $3.17, implying nearly 240% upside potential. Further, the high-side estimate calls for a price per share of $4.
During the TTM period, BlackSky incurred a loss of $52.35 million or 37 cents per share. However, revenue hit $100.33 million. And its current quarterly sales growth rate stands at 31.7%. For fiscal 2024, analysts are betting that the top line could fly to $108.94 million. If so, that would imply a growth rate of 15.3%.
In the following year, sales may rise to $138.54 million, up 27.2%. With that, BKSY is one of the space stocks to buy – if you can handle it.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.