SPECIAL REPORT The Top 7 Stocks for 2024

Space Tourism: 3 Companies to Invest in Before They Blast Off


  • Skyrocket your investment portfolio to new heights with the dynamic world of space tourism stocks.
  • Leidos Holdings (LDOS): Integral to NASA’s programs, LDOS’s $15 billion valuation reflects its pivotal role in supplying essentials for the International Space Station.
  • Rocket Lab USA (RKLB): Despite a net loss, RKLB’s $67.6 million revenue, a 7.3% YOY increase, is driven by its vital contributions to space sector advancements.
  • Virgin Galactic (SPCE): Virgin Galactic’s third commercial spaceflight, part of six successful launches in six months, underscores its growing impact on space tourism.
space tourism stocks - Space Tourism: 3 Companies to Invest in Before They Blast Off

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In the massive realm of investing, space tourism stocks are capturing the attention of forward-thinking investors. This emerging industry, once a distant dream, is now a robust market sector teeming with massive potential. As companies venture into the cosmos, investors are on the lookout for space stocks offering promising growth and innovation. These investments represent a tangible opportunity for significant market advancement.

However, managing this new investment landscape requires discernment. Amongst a plethora of opportunities, pinpointing the ventures with the most promise is imperative. Morgan Stanley’s projection underscores this task stating that space activity could be valued at over $1 trillion by 2040. With the space tug market also poised to reach a whopping $65 billion, the sector’s prospects are as expansive as space itself.

Consequently, these three particular space tourism stocks, distinguished by their innovative strategies and solid market potential, are poised to yield stellar investment returns.

Leidos Holdings (LDOS)

Leidos (LDOS) logo on the side of an office building
Source: Jer123 / Shutterstock.com

Leidos Holdings (NYSE: LDOS) has firmly established its presence, providing vital components for NASA’s programs. As a Fortune 500 leader in technology and engineering, LDOS boasts a robust valuation of $14.97 billion and plays a pivotal role in supplying a substantial portion of the 284,000 pounds of essentials required for the International Space Station.

Moreover, in the latest quarter, the company exceeded earnings expectations by an impressive 36 cents, reporting an earnings per share of $2.03. Moreover, it witnessed an 8.3% year-over-year revenue increase, posting an extraordinary $3.9 billion, going past estimates by a stellar $120 million. Adding to its financial prowess, Leidos recorded net bookings of $7.9 billion during the same quarter, illustrating robust growth and stability.

Furthermore, the stock’s trajectory has been impressive, soaring 39% in the past six months. Consequently, TipRanks analysts have confidently given LDOS a strong buy rating. They’ve set a target of $119.6, subtly suggesting a potential 10% upside.

Rocket Lab USA (RKLB)

Person holding smartphone with logo of aerospace company Rocket Lab USA Inc. (RKLB) on screen in front of website. Focus on phone display. Unmodified photo.
Source: T. Schneider / Shutterstock.com

Rocket Lab USA (NASDAQ: RKLB) continues to shine brightly in the vast cosmos of space stocks. Despite facing a net loss of $40.5 million, the company has impressively achieved a significant milestone by generating a robust $67.6 million in revenue, signifying a 7.3% bump year-over-year. This remarkable performance firmly cements its commendable position in the highly competitive space industry.

Navigating through challenges, Rocket Lab has adjusted its third-quarter guidance in light of a postponed electron mission. However, the company counterbalances this with successful recent launches, boosting its earnings prospects. The announcement of a launch window for the Capella Space mission is a testament to its commitment to continual growth and technological innovation in the sector.

With a market capitalization of $2.16 billion, Rocket Lab twinkles as a speculative buy, and its ongoing missions, including collaborations with partners like Leidos, reflect a pragmatic approach to sustainable development.

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) continues to chart a course as a vanguard in space tourism, with SPCE stock showing promising movement recently. The company has welcomed Luigi Brambilla, an individual with a wealth of experience in investment and capital markets. This strategic addition comes at a crucial time, as SPCE aims to rebound from a 33% year-to-date descent, eyeing long-term growth in revolutionizing space tourism.

Contributing to SPCE stock’s upward trajectory is the company’s impressive third-quarter earnings. Outperforming expectations, Virgin Galactic posted GAAP earnings per share of a negative 28 cents, surpassing estimates by 15 cents. Moreover, a revenue surge to $1.7 million, a whopping 120.8% increase year-over-year, driven by commercial spaceflights and future astronaut membership fees, signals a robust phase for the company.

Furthermore, Virgin Galactic’s third commercial spaceflight marks a milestone, reflecting its steadfast commitment to space exploration. Additionally, the CEO highlighted six successful spaceflights in just six months, showcasing the company’s operational consistency and underlining the growing allure of space tourism.

On the date of publication, Muslim Farooque 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

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

Article printed from InvestorPlace Media, https://investorplace.com/2023/12/space-tourism-3-companies-to-invest-in-before-they-blast-off/.

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