SPECIAL REPORT The Top 7 Stocks for 2024

3 Space Stocks With More Space to Run

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  • Set your sights beyond our galaxy as we journey through the most promising space stocks with untapped potential.
  • Virgin Galactic (SPCE): SPCE has set its sights on making space travel accessible to all.
  • Lockheed Martin (LMT): The defense powerhouse is in a strong position in space exploration.
  • Northrop Grumman Corp (NOC): NOC is determined to innovate and adapt to achieve interstellar aspirations.
space stocks - 3 Space Stocks With More Space to Run

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According to a recent research report by Spherical Insights & Consulting, the global space exploration market size was an impressive $486 billion in 2022. But hold onto your helmets because by 2032, this figure is poised to skyrocket to a staggering $1.87 trillion. The momentum behind space stocks is clear, and for those scanning the horizons for lucrative opportunities, this might be the frontier to watch.

Additionally, sectors like space robotics and space logistics are demonstrating impressive compound annual growth rates (CAGRs), further reinforcing the positive connotation surrounding this booming industry.

So, as the universe continues its eternal expansion, so does the space economy. For savvy investors, the message is clear, look up and seize the stellar opportunities that lie in the stars.

Virgin Galactic (SPCE)

Virgin Galactic (SPCE) banner hanging on the New York Stock Exchange building to celebrate its IPO.
Source: Christopher Penler / Shutterstock.com

Virgin Galactic (NYSE:SPCE), once a poster child for space stocks, has taken its investors on a roller-coaster ride this year. With a whopping year-to-date (YTD) loss of 60%, it’s been a tumultuous journey for the firm, particularly in the stock market. Despite this, the space tourism sector remains in its infancy and Virgin Galactic still stands as one of the space stocks with potential, backed by some bold moves and strategic alliances.

In its latest financial snapshot, the company reported a revenue surge of 424.1% to $1.87 million, but operating expenses also climbed, reflecting a 28.4% increase. Yet, it’s essential to remember that the race to space is more a marathon than a sprint. Virgin Galactic is continuously ramping up its operations, evident from its recent announcements regarding frequent spaceflights and collaborations with giants like NASA. Furthermore, the addition of Henio Arcangeli, Jr. to its board and its proactive stance on space regulations highlight its commitment to a stellar future.

Still, it’s evident that Virgin Galactic’s venture isn’t for the faint-hearted. Like space exploration itself, it promises both vast opportunities and significant challenges. As the company gears up for its upcoming suborbital research flight and garners attention from space enthusiasts worldwide, only time will tell if it’s set to become the shining star of the space economy. But one thing is certain, Virgin Galactic is unrelenting in its mission to make the cosmos accessible to all.

Lockheed Martin (LMT)

An F-16 and an F-35 model at the background, at the Lockheed Martin exhibition stand in Thessaloniki International Fair.
Source: Giannis Papanikos / Shutterstock.com

When you think of aerospace giants, Lockheed Martin (NYSE:LMT) inevitably steals the spotlight. Although its terrestrial metrics have seen a tremor, with a 7% dip in shares YTD, the story is deeper. Boasting net earnings of $1.7 billion in Q3 2023 and a free cash flow of $2.5 billion a fact emerges. This giant isn’t faltering, it’s recalibrating.

But Lockheed Martin’s real marvel is looking skyward. With a history spanning six decades, their space pursuits are stellar. NASA recently recognized Lockheed for the Lucy spacecraft which went on a mission to Jupiter’s Trojan asteroids. This attests to their unparalleled expertise. And their work on non-metallic, flexible habitats is groundbreaking. These habitats, seen as the next space frontier, showcase Lockheed’s zeal.

In summary, Lockheed Martin remains a defense powerhouse. They also shine in the realm of space. The recent financial dips, in this context, seem fleeting. They’re overshadowed by Lockheed’s luminous aspirations.

Northrop Grumman (NOC)

Northrop Grumman (NOC) logo on a corporate building
Source: Kristi Blokhin / Shutterstock.com

In the dynamic landscape of the defense sector, few names evoke as much respect as Northrop Grumman (NYSE:NOC). While its roots are deeply entrenched in defense, recent endeavors reveal a shift. The company is now gazing skywards, yearning for the vast expanse of the cosmos. Northrop Grumman’s foray into space exploration is evident. Its collaboration on pivotal NASA missions stands out. Moreover, its commitment to sustaining life aboard the International Space Station through the Cygnus spacecraft is commendable. This marks a bold stride into the future.

Even as this titan reaches for the stars, its earthly financials remain impressive. The company’s fiscal performance in Q3 2023 is a testament to this. Revenue climbed to $9.8 billion. Net income also experienced a slight increase to reach $937 million. EPS rose by 5% to hit $6.18. And, Northrop Grumman even increased their 2023 sales guidance by $400 million dollars to $39 billion.

This duality of ambitious space dreams and financials offers intrigue. Challenges are undeniable, but Northrop Grumman’s vast reserves and determination are evident. The company appears ready to innovate, adapt and soar. With its current trajectory, it’s not just navigating Earth’s competitive terrains. It’s setting its sights on interstellar milestones. For Northrop Grumman, the horizon is merely a starting point.

On the publication date, Faizan Farooque did not hold (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.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.


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