In 2021, space stocks snagged more than $20 billion in new funds, while private space counterparts raised more than $12 billion. That enthusiasm for space stocks to buy seemed to have waned, though, whether due to interest rate hikes or general investor unease over moonshot company prospects and financial viability.

But the global space stocks to buy race isn’t slowing down. If anything, it’s accelerating as more objects launch into orbit daily. Still, that creates a conundrum: is it better to invest in well-known, “stable” space stocks like Boeing (NYSE:BA) or bet the house on a more speculative company with greater potential but less short-term financial strength?

In general, sticking to smaller-cap space stocks offers greater long-term rewards. Of course, not all small-cap space stocks are on equal footing — just ask Virgin Galactic (NYSE:SPCE). These space stocks to buy now, though, offer the best of both worlds, including near-term profitability prospects and unlimited long-term potential.

Kratos Defense & Security Solutions (KTOS)

One of Cathie Wood’s favorite space stocks, Kratos Defense & Security Solutions (NASDAQ:KTOS) is unique in that it’s a small-cap space stocks to buy with a range of revenue streams. These additional cash flow categories help offset pricy R&D costs as it develops a range of space-based defense solutions. One of Kratos’ most promising secondary sectors includes autonomous drones for warfare, as InvestorPlace’s Josh Enomoto noted — but we’re here to look at the company’s space stock potential.

Just this week, Kratos successfully demonstrated a satellite communication ground system for the US Army designed to improve radio communications globally. The demonstration included a 3,000-mile radio check, showing how Kratos can help military allies and partners stay connected as we move toward increasingly dispersed, asymmetric warfare worldwide. Surprisingly, shares barely budged despite the systems’ stellar outcomes. Still, this may offer a buying and accumulation opportunity for space stock bulls as per-share pricing remains fairly low.

AST SpaceMobile (ASTS)

AST SpaceMobile (NASDAQ:ASTS) limped into 2024 as its much-anticipated strategic funding involving backers like AT&T (NYSE:T) and Google (NASDAQ:GOOG, NASDAQ:GOOGL) materialized. Before investors got their hopes up, though, equity dilutions and convertible note offerings cast a shadow on the celebration. Still, launching satellites into low-earth orbit to enable global cell connectivity is an expensive endeavor. Recent developments suggest that commercial rollouts are approaching—if you read between the lines.

Last week, AT&T launched an advertisement featuring Ben Stiller that promoted the company’s soon-to-be-available satellite/cell solution. As confirmed by AST’s official X account, the satellites mentioned are part of AST SpaceMobile’s collaboration with the telecom giant. Hiring Ben Stiller for an ad that aired during the PGA Masters Tournament—a slot potentially as expensive as a Super Bowl ad—raises questions.

Why invest heavily in promoting a commercial satellite cell service if the technology isn’t expected to launch until year’s end? While it might sound a bit conspiratorial, AT&T’s firm endorsement of the forthcoming satellite service suggests that go-to-market advancements might be closer than they appear, signaling a potential rapid upside for AST SpaceMobile.

Rocket Lab USA (RKLB)

Rocket Lab USA (NASDAQ:RKLB) notched a major win this month, but surprisingly, the spate of good news over the past few months has done little to pull the space stock’s per-share pricing much beyond penny stock territory.

On April 11th, Rocket Lab announced a new $32 million contract with the US Space Force to develop and launch a unique new spacecraft supporting the agency’s VICTUS HAZE mission. VICTUS HAZE describes a wide-ranging series of wargames to test and improve national threat reaction protocols. Space stock fanboys may recognize Rocket Lab’s newest contract as just the latest in a long line of government-connected projects, including a $515 million contract from the Space Development Agency.

Beyond dilution, part of Rocket Lab’s pricing woes stems from the long lead time it takes to recognize revenue from multi-year projects such as these. Still, with a $1 billion contract backlog, Rocket Lab has proven itself a viable space operator ready to skyrocket.

On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.