Due to the rapid commercialization of spacecraft for government, industrial, and commercial use, space stock mania is emerging. Soon these companies will boost to new heights, thereby leading us into new realms of travel.
One of the shiniest benefits of these space stocks is their attractive valuations, making them a catch as aggressive growth stocks ready to deliver solid returns. Some of these names are also household brands, which may appeal to blue-chip investors.
Let’s explore the best space stocks to buy now as they prepare to launch in the coming year.
Joby Aviation (JOBY)
Joby Aviation (NYSE:JOBY) is a leader in the electric vertical takeoff and landing (eVTOL) industry. Recently, the company received FAA certification and is seizing upon its ambitious plan to start commercial passenger operations by 2025.
JOBY partnered with NASA to analyze the acoustic impact of its electric air taxi. Under NASA’s Advanced Air Mobility (AAM) National Campaign, Joby pioneered the flying of an all-electric eVTOL aircraft. Given its collaboration with NASA, a space exploration leader, Joby Aviation can be viewed as a space stock in addition to producing flying cars.
Joby Aviation stands out due to its strategic partnership with Delta Air Lines (NYSE:DAL). They aim to transform home-to-airport transportation, especially in major cities like New York and Los Angeles.
On the flip side, JOBY stock has recently shown some short-term weakness. It reported a Q2 loss of $286 million, a significant increase from last year’s $49 million loss during the same period. This plunge is attributed to higher operational costs and reduced income. In the first half of 2023, the company lost $399 million. Despite these losses, Joby has nearly $1.2 billion in cash and short-term investments, maintained from the previous year.
However, with solid partnerships and a growing customer base, JOBY remains a top space stock to buy.
Astra Space (ASTR)
Astra Space (NASDAQ:ASTR) provides launch services and has recently gone public. Despite a current low trading price, the company’s potential in the launch service market makes it a stock to watch. Notably, ASTR is increasing the frequency of rocket launches.
Interesting developments have surfaced for ASTR stock. For example, it approved a 1-for-15 reverse stock split for its Class A and Class B common stocks, effective after trading on September 13, 2023.
Also, it’s come under some recent scrutiny this year, as it struggled to maintain its NASDAQ listing due to its stock price being below $1 in March. Since the company’s IPO through a SPAC in 2021, they have faced challenges. Astra’s recent stock price issues are not linked to capital raising but to the complexities of space launches.
So, why is ASTR a buy in spite of all these factors? It trades at historically low valuation ratios and has perhaps the best upside potential out of all these stocks listed.
Spire Global (SPIR)
Spire Global (NYSE:SPIR) is an Earth observation company. With the growing importance of satellite-based Earth observation for various applications, Spire Global’s position in this niche market offers potential growth opportunities.
Unlike some of the above-mentioned stocks, SPIR shows promising short-term fundamentals. Last quarter, it reported a record quarterly revenue of $26.5 million, a 37% year-over-year increase, and improved various financial metrics. With over 800 annual recurring revenue customers, the company has exceeded its financial expectations for two consecutive quarters. Further, they anticipate positive cash flow and other financial milestones in 2024.
Also, SPIR went through a stock split this year, which sent shares soaring. This 1-for-8 reverse stock split, effective on August 31, aimed to maintain its NYSE listing, which requires a minimum bid price of $1 to avoid being labeled a penny stock.
Since SPIR’s market cap is so small, and it has promising upside potential for even further gains, it makes sense that it’s a space stock to buy.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
