Investing In Space: 5 Space Stocks to Consider
Author: James Clark
While not everyone can become an astronaut and go to space, you can still invest in space stocks and contribute to space exploration and earn profits simultaneously.
Space exploration has always been an important endeavor for mankind. However, not everyone can’t participate in space ventures as they are prohibitively expensive and carry a lot of uncertainty. Both reasons push away profit-seeking companies and stock investors from investing in them. However, this attitude is shifting, thanks to high-flying billionaires’ very public and ambitious passion projects related to space exploration; this is evident from Elon Musk’s Space X and Jeff Bezos’ Blue Origin dominating the headlines.
Thanks to these incredible ventures, the space exploration industry is rapidly expanding from its core function and delving into other sectors to make money, such as tourism, transportation, and even real estate.
If you’re an avid stock investor with a keen interest in space technologies, read on to check out our top space stock recommendations.
5 Publicly-Trade Space Companies to Consider Investing in
1. Astra Space
Astra Space is among the few companies manufacturing next-generation rockets for more frequent travel. The company currently designs, tests, and offers several futuristic services, such as earth observation, precision weather monitoring, space navigation, and interplanetary communications. Astra is still finding its wings in the industry and aims to compete with the big guns by 2025. The good news for investors is that it’s among the few publicly traded space stocks in the market right now.
2. Lockheed Martin Corp
Lockheed Martin is one of the most important players in the aerospace, arms, defense, and information security industry. The company recently announced its plans to acquire Rocketdyne Holdings Inc. to diversify further and enter the space exploration industry. While the deal is still under negotiation, investing in Lockheed Martin is a smart idea as it is already an established tech conglomerate with a market cap of $98.27 billion.
3. Virgin Galactic Holdings Inc.
Virgin Galactic is one of the most innovative space travel companies today specializing in building commercial air and space vehicles. It aims to provide spaceflight services for everyone, which could be the next big thing in modern transportation. However, the company’s stock is highly speculative since it’s still early days. Still, shares prices rose as high as $31 in July 2021, which indicates how profitable the company could be when it eventually commences space flights.
4. SpaceX (Tesla)
SpaceX is one of Elon Musk’s tech subsidiaries that aims to design, manufacture, and launch advanced rockets and space crafts to start the next phase of space transportation and interplanetary exploration The company was founded in 2002, and, in 2021, the company successfully launched a rocket carrying Elon Musk’s red Tesla Roadster with a dummy wearing a spacesuit in the driver’s seat. This mission reportedly increased Tesla’s stock price by 8% and elevated the company’s chances of making it into the S&P 500.
5. Iridium Communications Inc
Iridium Communication is among the few established space companies in the market today, with a network of 66 low-earth orbiting satellites that enable voice and data connectivity worldwide. It connects people to the digital space in far-flung corners of the earth where no service can reach, like Antarctica. During the pandemic, the company subscribers reportedly increased by 300,000, leading to revenue growth between 4% and 5%. Its shares sell at just $39.64, making it a great value stock for communications and space technology enthusiasts.
And there you have it. Our 5 top picks of the best space stocks in the market to consider. However, we recommend thoroughly researching these companies and considering several factors before investing, such as stock price, volatility, trading style, trading goals, and the overall market sentiment towards these stocks.
1. Vericel Corporation (VCEL)
2. Energy Recovery, Inc. (ERII)
3. Flexion Therapeutics, Inc. (FLXN)
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