The space exploration industry is changing quickly, which makes now an exciting time to invest in the industry.
Space tourism has long been considered a thing of the future, but with technology changing quickly, it might be coming sooner than you think.
There is a lot of hype around the space industry right now.
Billionaire Richard Branson took a recent trip to space in a supersonic plane built by his company, Virgin Galactic.
Another prominent billionaire, Jeff Bezos of Amazon, has recently taken his Blue Origin company into orbit as well.
This exciting news has investors wondering if space tourism will be readily accessible in the next few years.
There are so many exciting companies on the market right now that are pushing the limits of what we thought was possible with space travel.
We’ve rounded up the best space stocks for investors to check out right now.
Best Space Stocks To Buy
Northrop Grumman Corporation (NYSE: NOC)
Northrop Grumman is one of the top space companies in the world.
It has contracts with governments around the world to develop space and defense technology.
Northrop Grumman has increased its involvement in the space industry over the last few years.
From 2018 to 2020, they developed the OmegA space launch, although this ultimately wasn’t selected for a government contract.
Up next, the company is part of the U.S.’s National Team to develop a lunar lander.
It has a contract to develop the Transfer Element for the Artemis program, which essentially allows the spacecraft to dock once it reaches the Moon.
Northrop will also develop HALO, a module built to orbit the Moon that will serve as a stop for astronauts before they land.
Additionally, it provides support to NASA for several key telescopes.
Its team has also developed the Cygnus, a spacecraft that carries cargo to the International Space Station.
In addition to its involvement in the space industry, Northrop is involved in some of the U.S. government’s most significant defense contracts.
Northrop recently landed a contract to develop new missile systems, which has been financially lucrative.
Defense contracts like this give Northrop Grumman a financial buffer as they expand their space operations.
The space sector is very competitive right now and can be a bit more volatile than the defense industry.
Northrop Grumman stock is once again seeing an increase after plateauing for the summer.
The stock also has a solid dividend yield of 1.59 percent, making it even more exciting for long-term investors.
Astra Space (NASDAQ: ASTR)
Astra Space is one of the most exciting new companies in the space industry right now.
The company recently went public via a SPAC in July.
Currently, its focus is on low Earth orbit satellite launches.
These launches allow companies to send satellites to space without having to build their own launch system.
Astra is still looking to put a rocket into orbit and hopes to do so this year.
A launch scheduled for August 28th did not occur, but the company believes it has learned from the mistakes that kept it grounded.
Several companies, including the United States government, are already in talks with Astra Space for delivery missions.
Although the company doesn’t have much to show at present, its future is looking very bright.
It expects to launch a rocket into space every day starting in 2025 to keep up with demand.
Since Astra is so new to the market, this stock may be volatile in the short term.
However, the market’s interest in their satellite launches bodes well for the future.
Iridium Communications (NASDAQ: IRDM)
Iridium Communications controls 66 satellites that cover 100% of the globe.
If Iridium’s name didn’t give it away, the company uses these satellites to allow communication from anywhere in the world.
Communication devices that use these satellites range from transceivers to satellite phones.
It does a stellar job of creating revenue and averages over $200 million in free cash flow.
Iridium has no significant expenses scheduled since all its satellites are already in space.
It even has seven backups in orbit in case an orbiter goes down.
This is all reflected in the share price, which has seen a significant rise over the last five years.
At present, nothing is stopping Iridium Communications from continuing this trend.
Lockheed Martin (NYSE: LMT)
Lockheed Martin has several interests that cover security, technology, defense, and aerospace.
The company started out much closer to the ground but has recently branched out into the space market.
Its products include spacecraft and satellites for both commercial and government use.
Lockheed Martin currently holds several defense contracts with the U.S. government alone.
Space is still a small part of Lockheed’s business, but its other industries provide diversity and stability.
Last quarter, Lockheed Martin reported that it saw substantial profits from its space program.
Lockheed has been given the go-ahead to manufacture and test Orion spacecraft that are part of the initiative to put humans back on the Moon.
This speaks volumes for the company’s space program moving forward and paints it in a very positive light.
ARK Space Exploration & Innovation ETF (BATS: ARKX)
If you want to get your hands on some of these top stocks at a lower share price, consider an exchange-traded fund (ETF).
This ETF focuses on orbital and sub-orbital aerospace companies, including big names like Lockheed Martin and Iridium Communications.
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ARK Space Exploration & Innovation ETF’s diverse portfolio also has companies that benefit from aerospace, from imaging to agriculture.
At under $20 per share, ARK is much more affordable than buying Lockheed Martin stock directly.
The ETF currently sees several ups and downs and has traded sideways over the last year.
Still, with some big names in aerospace under its belt, ARK could see significant gains as this sector continues to grow.
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Best Space Travel Stocks
Virgin Galactic (NYSE: SPCE)
Virgin Galactic is an exciting company that is developing commercial space technology.
It is part of Richard Branson’s Virgin Group and is based in New Mexico.
As part of the commercial space race, Virgin Galactic is developing spacecraft for space tourists as well as scientific purposes.
Virgin Galactic stock has been at the center of a lot of hype recently after Richard Branson’s flight to space.
It was the first company to complete a mission of this kind.
Branson flew on the VSS Unity, a suborbital spaceplane that can travel at supersonic speeds.
After this successful mission with Branson, the company is poised to start using this plane for paid passenger flights in 2022.
Virgin Galactic went public via a SPAC in 2019, which started a SPAC trend on the stock market.
Although their stock price has been volatile over the past few months, this company has plenty of room for long-term growth.
Recent flight test delays have caused stocks to fall, but it’s very likely share price will increase in the future.
It is at the forefront of the space tourism industry – an industry that could double in value over the next decade.
Since there will be a limited number of space flights available, Virgin Galactic will likely charge a significant amount for each ticket.
This could send their earnings skyrocketing in the future.
Boeing (NYSE: B.A.)
You may know Boeing as an aircraft manufacturer, but their space-related projects are also noteworthy.
It is one-half of the United Launch Alliance and is working on exciting projects like the Vulcan Rocket.
Boeing is a very established company, having been founded in 1916.
It has had a consistent presence in the air and space sector ever since.
Boeing’s aerospace operations are run out of their defense, space, and security division.
The company provides a number of different spacecraft, including launch systems, space planes, satellites, probes, and more.
It works with NASA and other agencies on their space projects.
The company recently launched a test flight of their Starliner spacecraft, which could eventually ferry astronauts to and from the International Space Station.
Boeing stock struggled throughout 2020, although not because of its space projects.
Being one of the world’s largest manufacturers of airplanes, it was heavily affected by COVID-19 related shutdowns.
There were also several high-profile crashes with the company’s 737 MAX aircraft, which led to its grounding by the FAA and other government agencies around the world.
Boeing stock recently dropped slightly due to an increase in COVID-19 cases in the United States, making this a potentially good time to buy the dip.
Maxar Technologies (NYSE: MAXR)
Maxar is a growing space company based in Colorado.
The company is involved in satellite communications, radar technology, and more.
Maxar was created as a merger of four different companies just a few years ago.
Although they’re relatively new in the industry, they’ve already been quite successful.
Earlier this year, they acquired Vricon, a company involved in 3D satellite data.
The company currently manufactures satellites and provides access to satellite imagery and data for its clients.
It also provides analytics services that can help clients in a wide range of industries.
These services apply to both public and private companies and can be applied to exploration projects as well as defense and intelligence services.
Right now, Maxar has a meager price-to-earnings ratio, indicating that they could be undervalued.
The company is able to pay a small dividend.
However, Maxar’s stock price has been very volatile over the past several months.
This is likely because Maxar hasn’t launched their WorldView Legion satellites yet, and investors may be getting impatient.
Although this stock may be volatile in the short term, this company appears to have a lot of long-term potential.
Investing In Space Stocks
The space business has really piqued investor interest in recent years.
As we struggle with climate change here on Earth, many tech companies are looking to space for new solutions.
One key thing to look for when shopping for space stocks is diversity in their operations.
While space tourism is a buzzy topic right now, it could be many years before it becomes a reality for the average consumer.
Cargo operations and deep space exploration can balance out space tourism.
Satellite launch services are another potentially lucrative stream of revenue for space companies.
Successful government contracts may be a good indication of success for a space company.
When looking at a space stock, consider its financial data from the last year or so.
It’s always helpful to look at its revenue and profits relative to Wall Street’s expectations.
You should also look at upcoming projects to see what its future prospects are.
Finally, you might look at relevant stock data like the price-to-earnings ratio, which can tell you if a stock is undervalued.
SpaceX is one of the most exciting companies in the space business and is leading the ‘new space’ industry.
Celebrity entrepreneur Elon Musk founded SpaceX in 2002 in southern California and currently has an estimated value of $74 billion.
It focuses on making space travel more efficient and accessible.
While investor interest in SpaceX is high, it is currently a private company and is not traded on the stock market.
Musk has opted to keep SpaceX private because it allows the company to focus on innovation without as many restrictions as public companies.
SpaceX is known for the Falcon rocket, which is the first reusable rocket to reach orbit.
It is also developing the Dragon rocket, which will be able to take passengers and cargo to and from space.
The Dragon is the first private rocket to take passengers to the International Space Station and could be used for space tourism in the future as well.
Although you can’t invest in SpaceX yet, you can benefit financially from their success by investing in companies that partner with SpaceX.
They are proving that commercial companies can be just as successful in the space market as public contractors.Stock Advice That Beats The Market! Stock Advisor's recommendations have beaten the market over the past 19 years. Tired of picking losers? Stock Dork readers can join for only $99 a year! Check out Stock Advisor today!
Does NASA Have Stock?
When you think of space, you probably think of NASA.
This U.S. agency runs high-profile rocket launches, operates space telescopes, and is currently working to send humans to Mars and beyond.
Because NASA is a government agency, they are not listed on the stock market.
However, there are still ways to invest in NASA projects.
Investors can look for companies like Boeing that contract with NASA.
Landing a NASA contract can be very lucrative for any company.
Space stocks that have contracted with NASA often seen a bump in their stock price as a result.
Best Space Stocks: Final Thoughts
The aerospace industry is very exciting right now.
New innovations are making it easier for companies to send cargo and even humans to space.
Commercial space tourism, once considered a thing of the future, is now becoming more realistic.
Investing in space stocks is the easiest way for investors to capitalize on this innovation.
These companies are likely to continue their growth in the future and present an exciting financial opportunity.
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