My 15-year-old son and I are fascinated with outer space, and by extension, the array of space stocks to buy.
We often talk about the planets, the satellites, and the millions of galaxies that are millions of light years away. We talk about how interesting it would be to travel to Mars, or even what may lie beyond the event horizon of a black hole. We’re blown away by the unbelievable size of UY Scuti, for example, and that fact you can fit more than a million Earths into our sun.
We’re not the only ones.
Millions of people all over the world are fascinated about what could exist in space. While we may never know what exists trillions of miles away, or what the “Great Attractor” may be, some of us may still be lucky enough to take part in space tourism. How cool would that be?
The best part – there are plenty of companies involved. Morgan Stanley says the space industry is a $350 billion business, and that could grow to $1 trillion by 2040.
Here are some of the best space stocks to consider:
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Virgin Galactic has had some recent setbacks. Electromagnetic interference (EMI) issues delayed test flights until May. It also pushed back its space tourism service a bit more, too.
Then, again, it’s better if SPCE get it all right. The last thing it wants to do is launch with an issue. Having worked in PR for years, that could be a nightmare.
For those with patience, SPCE stock may be a good opportunity. On news of another round of delays, the stock fell from about $50 to $33, where it has become technically oversold. However, as the company nears a potential May 2021 test day, excitement could return and perhaps help refill the bearish gap.
Source: Jurik Peter/ShutterStock.com
One of my favorite ways to trade an up-and-coming sector is with an ETF. Not only does it offer me diversification, it does so at less cost.
The Procure Space ETF offers exposure to space-related industries, such as equipment manufacturing, rocket and satellite operation, satellite telecommunications, and space technology and hardware.
At the moment, UFO trades at nearly $30. It also just rocketed from a March 2020 low of about $17. If the space industry can take off, as hoped, I’d like the see the ETF closer to $40 in the near term.
Better, the ETF offers us exposure to more than 30 space-related stocks, including Virgin Galactic, Orbcomm (NASDAQ:ORBC), Viasat (NASDAQ:VSAT) and Gilat Satellite Networks (NASDAQ:GILT). Again, it’s offering diversification at far less cost.
Source: Jurik Peter / Shutterstock.com
Maxar Technologies skyrocketed from a May 2020 low of about $10 to about $51. However, it could be cleared for takeoff to $60 in the near term.
For one, it was involved in the latest Mars mission. If you’re like me, you were glued to the screen, watching Perseverance land on Mars. As it turns out, part of that technology was a Maxar Technologies’ robotic arm. Two, the company is also fundamentally sound. It reported consolidated revenues of $1.723 billion. Net income came in at $303 million.
According to president and CEO Dan Jablonsky, as quoted in a company press release:
We made solid progress during 2020 toward achieving our longer-term targets, including efforts to drive sustainable growth in both our Earth Intelligence and Space Infrastructure segments and to reduce our debt and leverage, as evidenced by solid 17% year-over-year backlog growth and the closure of the MDA divestiture and subsequent repayment of debt.
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Stable Road Acquisition is a special purpose acquisition company (SPAC) that will merge with a privately held company, Momentus, to create a space stock.
According to its investor deck, the company has a backlog of $90 million in potential revenue with customers including NASA, Lockheed Martin (NYSE:LMT), and Kepler.
“Momentus is developing capabilities to provide critical infrastructure services: in-space transportation, satellite as a service, and in-orbit services.” the company says in a press release.
The new company is expected to trade under the ticker MNTS.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned in this article. A contributor to InvestorPlace.com, Ian Cooper has been analyzing stocks and options for web-based advisories since 1999. Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.
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