In February 2024, investors were reminded why the space economy matters, and why it’s a good time to consider the top space stocks. The United States returned to the moon with the privately built Nova C Odysseus lander. And the lander was launched from a SpaceX Falcon 9 rocket.
Although the mission wasn’t perfect, it does provide a glimpse of what’s possible in space exploration. The next race to send humans to the moon is on. And the idea of sending a manned mission to Mars no longer seems like science fiction, although it’s still years and maybe decades away.
And if exploration is too aspirational for you, consider that the space industry also has national security and commercial applications. This is a billion-dollar industry today that will only expand in the coming years. The purest plays carry significant risk, but if you’re looking for the top space stocks, consider these three.
Lockheed Martin (LMT)
When you’re looking for top space stocks, risk won’t be hard to find. Security and stability are a different matter. While not one of the Dow 30, Lockheed Martin (NYSE:LMT) is about as blue blood of a stock as you can get. The company has a $110 billion market cap, it trades for a reasonable 17.5x forward earnings and pays a dividend with a 2.75% yield that has been growing for 21 straight years.
Of course, you’ll be paying to own the stock. Each share runs about $463 as of this writing. But LMT stock will be one of the names in any space or defense ETF you’ll buy. So it makes sense to consider the stock as an individual holding.
Although Lockheed Martin may be better known as a defense contractor, space is one of the company’s four core businesses. Its spacecraft have already logged over one million hours of operation.
Intuitive Machines (LUNR)
Intuitive Machines (NASDAQ:LUNR) was an integral part of the February moon landing. It was the company’s Nova C Odysseus lunar module that landed on the moon’s surface. But, as followers of the event learned, the module tipped over upon landing.
The journey of Odysseus was reflected in the LUNR stock price which had already doubled in 2024 prior to the launch. After initially jumping to over $11 a share, the stock has been cut by around 50% and is trading at $5.41 as of this writing.
As you consider whether LUNR stock is one of the top space stocks, the story isn’t that the lunar module tipped over. It’s that the company’s proprietary liquid methane and liquid oxygen propulsion system achieved the first-ever deep space ignition. Plus, Intuitive Machines is already working with NASA as part of future missions.
And the company’s Lunar Access Services are only one part of the company’s revenue stream, which hit a record high of $30.56 million in the fourth quarter 2023.
Redwire (RDW)
Interestingly, Redwire (NASDAQ:RDW) made the list of top space stocks to watch toward the end of March. The stock has dropped 14.5% since then. But that’s due to the broader market sell-off. As a micro-cap company with a market cap of just over $200 million, it was going to get dragged down in the 2024 flight to safety.
But the company provides essential building blocks of space technology infrastructure. And it has revenue streams that encompass national security, commercial and civil applications. Though not yet profitable, it has an impressive current and backlog of revenue. In fact, 80% of the company’s revenue is generated through fixed, multi-year contracts.
Plus, analysts continue to love the stock. As I mentioned in my prior article, it’s unusual to see five analysts issue a rating on small-cap stock that isn’t even profitable. And when all five give RDW stock a strong buy rating, investors should take notice.
On the date of publication, Chris Markoch 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.
