The 3 Most Promising Space Stocks to Own Now
A true frontier market, promising space stocks may potentially benefit from rapidly burgeoning interest in explorations beyond our planetary borders. For centuries, humankind has always looked to the stars and envisioned a true holistic economy. Given the pace of technological innovation, that fantastical notion may soon become a reality.
According to Morgan Stanley, analysts estimate that by 2040, the space economy could surge to over $1 trillion. However, with interest in space stocks to buy skyrocketing among retail investors, this forecast might be conservative. Bloomberg recently pointed out that the global space economy already grew 8% to $546 billion in 2022. Further, it may climb another 41% over the next five years.
In addition, research from McKinsey & Company notes that the underlying arena could hit $1 trillion by 2030. While the segment presents high risks, some folks might not want to be left behind. On that note, below are promising space stocks to buy.
Rocket Lab USA (RKLB)
Primarily offering a satellite launch service similar to SpaceX or Blue Origin, Rocket Lab USA (NASDAQ:RKLB) also specializes in its Photon platform, which provides end-to-end satellite solutions. Put another way, Rocket Lab is a two-pronged weapon: it can launch its enterprise-level clients’ satellites and can also design and operate satellites throughout their entire lifecycle.
What really makes RKLB one of the promising space stocks to buy is that it’s been generating headlines for the right reasons. In July, Rocket Lab announced a successful launch of seven satellites for NASA and its peers. Earlier this month, the company posted better-than-expected results for its second quarter. Subsequently, it attracted generally positive assessments from top Wall Street analysts.
Speaking of which, analysts currently peg RKLB as a consensus moderate buy. This assessment breaks down as five buys, two holds and zero sells. In addition, the average price target lands at $9.61, implying 62% upside potential.
Planet Labs (PL)
An Earth-imaging specialist, Planet Labs (NYSE:PL) designs and manufactures small satellites called Doves to capture high-resolution images of our planet’s landmass daily. While its primary service centers on Earth observation, the company collects a vast library of data. Therefore, it’s a treasure trove of scientific insights and future applications. From the impact of climate change to planning infrastructural developments to assessing crop yields, Planet Labs is vital to our broader understanding.
Of course, when it comes to certain space stocks, the underlying narrative can sound more fantastical than practical. That’s not the case with Planet Labs, however. For example, The New York Times recently reported on how North Korea receives illicit oil thanks in part to China’s assistance. Of course, the topic presents controversies. At the same time, it’s vital information for our national security.
Oh yeah, the Times was able to break this story thanks in no small part to Planet Labs. Finally, PL carries a strong buy consensus view with a $6.45 price target, implying over 105% upside potential.
Terran Orbital (LLAP)
Though ranking among the promising space stocks to buy, Terran Orbital (NYSE:LLAP) presents significant risks. Since the start of the year, LLAP lost over 19% of its equity value. And in the trailing one-year period, it hemorrhaged over 69%. Nevertheless, the aerospace specialist – which primarily focuses on manufacturing nanosatellites and microsatellites – provides end-to-end satellite services. It serves multiple client categories, from government entities to commercial enterprises.
One of the key reasons why LLAP attracts investors seeking space stocks to buy centers on its core business. By manufacturing and providing smaller satellites, Terran can offer a more cost-effective alternative to its larger rivals. Maybe that doesn’t sound as appealing right now. However, given the macro concerns on the horizon, Terran’s lower-cost profile may end up being far more attractive.
While LLAP presents high risks, analysts overall – with one exception – rave about Terran, pegging it a moderate buy. This assessment breaks down into three buys, zero holds, and one sell. Significantly, the average price target stands at $4.72, implying nearly 287% upside potential.
On the date of publication, Josh Enomoto 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.
