Space stocks offer tremendous upside potential for investors willing to stomach the risk. Backed by innovative ventures, companies involved in the space sector are effectively turning the once-distant cosmos into a viable investment opportunity beyond niche projects such as satellite deployments and lunar missions.
Moreover, as outer space becomes more accessible, the industry showcases massive long-term potential. In addition, space economy investments soared by 31% quarter-over-quarter (QOQ) in the fourth-quarter (Q4) alone, pouring $4.6 billion across 108 companies. This surge is part of a broader trend of a staggering $298 billion invested in 1,832 unique space ventures over the last decade. This leap exemplifies the industry’s magnetic appeal, showcasing explosive growth and innovation.
Consequently, you should add these three standout space stocks to your portfolio, offering a gateway to scale cosmic peaks and trailblazes in space exploration.
Rocket Lab USA (RKLB)
Rocket Lab USA (NASDAQ:RKLB) is redefining the space industry with its innovative electron rocket, marking significant strides in satellite deployment for high-profile clients, including NASA. The firm focuses on reusability and advanced recovery techniques to deliver an unmatched service for its clientele.
Despite operating in a non-conducive market in the past year or so, RKLB is delivering on its promises, having recently secured the Federal Aviation Administration approval for electron launches. It plans to launch its first fully booked manifest this year, which could potentially be a potential needle-mover for its stock. RKLB stock is down 17% year-to-date, but these positive catalysts could potentially help reverse course in the latter half of the year.
Moreover, RKLB’s recent acquisition of a substantial $515 million contract from the Space Development Agency marks a pivotal achievement, firmly establishing its position as a leading satellite contractor. The contract serves as a testament to Rocket Lab’s strategic role in shaping the future of the space sector through innovations and savvy acquisitions.
Lockheed Martin (LMT)
Lockheed Martin (NYSE:LMT), a key player in the space stock arena, has successfully launched the sixth GPS III satellite, building on the U.S. Space Force’s navigation system. This launch is part of a $515 million contract, emphasizing Lockheed’s indispensable role in strengthening global navigation systems. The GPS III satellites are set to deliver threefold accuracy and eightfold anti-jamming capabilities compared to their predecessors.
In addition, the development of the GPS IIIF satellites introduces groundbreaking features that promise to advance its market dominance further. Moreover, LMT stocks innovative Pony Express 2 mission, leveraging cutting-edge communication and artificial intelligence (AI) technologies.
In terms of financials, the company continues to deliver, with its Q4 results outpacing analyst estimates on its top-and-bottom-line results. Its EPS beat analyst estimates by 65 cents and revenue beat estimates by a whopping $927 million. Moreover, its backlog has improved by a healthy 7% year-over-year, adding to its bull-case.
Amazon (AMZN)
Amazon (NASDAQ: AMZN) never ceases to amaze with its ability to drive change by continually investing and building new business avenues. Now, Amazon is making significant strides in the satellite internet market with its Kuiper prototype satellites, recently achieving 100 Gbps data transfer speeds over 621 miles. This advancement positions Amazon’s upcoming orbital laser mesh network to surpass terrestrial fiber optics, showcasing the company’s potential to revolutionize global connectivity. With an investment exceeding $10 billion and a plan to launch 3,236 satellites, Amazon is setting the stage for a major leap in internet accessibility worldwide.
Moreover, Amazon’s strategic alliance with SpaceX for three Falcon 9 launches in 2025 underscores its focus on innovation over competition. This strategic partnership is poised to catalyze a boom in the space economy, presenting savvy investors with a prime opportunity to tap into space stocks.
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.
