With the recent advancements in space, Maine is shaping to be a prime location for the global aerospace industry. Research has shown that the rapidly growing industry is expanding outwards and into the Aroostook Country. This expansion, signaling partnerships with efforts in other states, is part of a plan to establish Maine as a center for launching rockets and nono-satellites. This has led to the rise of space stocks to buy.
And overall, these expansions are part of the statewide Maine Space Complex plan, which aims to create 3,500 jobs with an average annual salary of $77,000 to capture 10% of the United States’ small satellite and launch markets by 2045. Consumer demand for space has been bigger than ever, and with these investments in sight to create more jobs, aeronautical and space stocks will see a greater growth trend in the foreseeable future.
Lockheed Martin (LMT)
Lockheed Martin (NYSE:LMT) is a leading defense company specializing in researching and developing various aeronautic and deep space technology. Its reputable history of working with NASA (which dates back over fifty years) sets Lockheed Martin apart from others, as the corporation has unparalleled experience and resources.
Due to supply chain constraints, LMT stock is down 3.94% year-to-date. Still, earnings and revenue have exhibited strong performance, with Q1 2023 revenue of $15.13 billion beating estimates by $115.91 million and EPS of $6.43 beating projections by $0.34. It’s one of those space stocks to pay attention to.
From commercial space flights commencing to scientists wanting to explore further into the universe, the space industry is in higher demand than ever. Projections forecast a 12.2% CAGR of the industry, growing from $9.15 billion to $20.54 billion by 2030. Such conditions place Lockheed Martin in an ideal position—especially considering it has a partnership with Blue Origin to enable an easier transition onto the new space travel trend shortly.
This partnership, providing publicity and entrance to a rapidly expanding market, is just one of the key catalysts expected to drive growth for Lockheed Martin. Another promising opportunity relates to the Biden administration’s new bill that calls for “3% growth for two years in defense.” As much as Lockheed Martin is focused on space exploration, it is still, at its core, a defense company, with 42% of all 2022 sales stemming from defense-related products. Consequently, Biden’s increase in budget for the industry will provide additional funding for Lockheed, which always fosters growth.
Overall, such catalysts, alongside its strong reputation and persistent financial performance, will bring LMT stock to the stars for your portfolio.
Iridium Communications Inc. (IRDM)
Iridium Communications Inc. (NASDAQ:IRDM) is an American satellite communication company that operates the Iridium satellite constellation. The constellation comprises 66 satellites in low-Earth orbit, which provides reliable and low-latency communication for voice, data, and/or emergency services. Furthermore, IRDM stock is up 14.05% year-to-date.
Iridium faces little competition as the company utilizes the “L-band” spectrum for transmitting satellite signals. Among the various satellite frequency bands, the L-band stands out as the lowest in frequency, making it less vulnerable to rain fading—this is a key advantage. Satellite communication sees new competitors, such as SpaceX’s Starlink and Amazon’s Kuiper. It is worth noting that these companies have chosen to operate in the Ku-band frequency for their satellite communication systems, which does not directly compete with Iridium. Iridium has also completed its satellite constellation while SpaceX and Amazon are still building it. As a result, Iridium’s position in the satellite communication market remains unaffected by the entry of Starlink and Kuiper and remains a reliable and low-risk investment.
The global satellite communication market was valued at $71.6 billion in 2021 and is expected to grow at a 9.5% CAGR by 2030. With SpaceX and Amazon starting to enter the satellite communication industry, the market is poised for significant growth in the coming years as these companies recognize the growth opportunities within this sector. Iridium has also demonstrated robust financial performance, with a notable increase in revenue. In 2022, the company recorded a year-over-year growth of 17.34% in its earnings, showcasing its most significant increase by far in revenue in nearly a decade. This means it’s one of those space stocks to buy.
Considering the solid financial performance, established satellite constellation, and utilization of the advantageous L-band spectrum, IRDM stock is a compelling addition to your investment portfolio. Yahoo Finance analysts have consistently provided a strong buying rating for IRDM, with price targets set at 65.8, while the current price stands at 60.40, indicating potential growth and positive stock forecasting.
The Boeing Company (BA)
The Boeing Company (NYSE:BA) develops, manufactures, and services commercial airplanes, defense products, and space systems. BA stock is up 51.53% YoY, with multiple growth catalysts in mind.
Despite COVID-19 causing severe setbacks for the aviation industry, with the market projected to grow at a 2.95% CAGR through 2028, Boeing has reported an optimistic 20-year outlook. Boeing expects the global aircraft fleet to almost double by 2042, meaning airlines will need to buy 42,595 jets. This is higher than the 41,170 jets forecasted in last year’s 20-year forecast, as global passenger traffic is recovering and is forecasted to reach 92% of pre-pandemic levels this year. Another key catalyst for Boeing is its recent $2.02 billion contract with the U.S. Navy to update the Hornet and Growler aircraft platform systems. The contract has reinforced Boeing’s position as a military and government supplier, which acts as a steady revenue stream.
Although the company is losing money in the short-term, with Q1 Non-GAAP EPS of -$1.27, the company is still growing as Q1 revenue of $17.9 billion grew 27.9% YoY. Boeing is still expected to deliver between 400 to 450 737 airplanes this year, and production will increase to 38 per month later this year to regrow financials.
24 Wall Street analysts have priced BA stock at a mean 1-year price target of $234.43, indicating a steady “buy” rating. Along with buy ratings from multiple notable firms, Boeing’s numerous key catalysts and reaffirmation of FY23 guidance have presented the company with excellent growth, making it a great addition to investor portfolios.
On the date of publication, Michael Que 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.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
