Astronautics might be the hottest industry in the world these days, so are the Space Stocks. The space industry has been in the headlines for decades, dating back to the first-ever successful human landing on the moon’s surface by the National Aeronautics and Space Administration (NASA), which also led to the formation of the International Space Station (ISS).
Space exploration often faces criticism due to the heavy costs of developing rockets and other related equipment, but space has helped a lot in science and technology.
Economic gains followed as humans moved into Earth’s orbit. Microcameras and wireless headphones are one of the few miracles of aeronautics.
Importance of Watching Space Stocks
The private sector has taken the economy by both hands of this fast-growing space economy. The James Webb Space Telescope and the International Space Station (ISS) remain under the purview of governments. The space economy was valued at US$469 billion in 202 and is expected to hit US$1 trillion by 2040.
You can buy space stocks today if you want to invest!
Best Space Stocks
As the space economy is growing vastly, projections show the skyward trajectory of renowned other companies worldwide. Here are the 5 Best Space Stocks suggested based on Reddit communities like subreddits that could see growth.
- Blink Charging (BLNK)
Atlanticare is the largest healthcare organization in southern New Jersey, and Blink Charging will deploy 81 of its IQ 200 EV charging stations in integrated healthcare systems. These deployments are of the fastest level, with a maximum output of 80 amps. Overall, the industry gives positive reviews about the product. For instance, InsideEVs praised style, pricing, and user interface. Cash flow might be limited at this time, which makes investors cautious.
- Rocket Lab USA Inc. ($RKLB)
This is one of the most consistently performing and popular stocks of Stake, trading for more than the combined value of Boeing and Lockheed Martin. It was founded in 2006 and offers services in launching spacecraft, leaching components, and managing on-orbit operations. Until April 2023, it had completed 35 launches, controlled three launch pads, deployed multiple satellites, and had two-photon satellites in orbit. The United States Space Force, NASA, the National Reconnaissance Office of the U.S., DARPA, and the United States Space Force are their customers. Results haven’t been promising in the last few years, yet Stake’s customers remain hopeful.
- Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS)
This California-based company makes space-related products. The U.S. Navy recently awarded a $46.7 million contract for submarine missile reentry systems. They collected revenue of $231.8 million in the first quarter of 2023, which is 18.1 per cent higher than 2022’s first quarter. They successfully tested the Zeus 1 solid-propellant rocket motor. Their workforce spans 2700 employees, and many hold national security clearances. Prospects are promising for investments.
- Virgin Galactic Holdings Inc. ($SPCE)
Virgin Galactic saw over 300% growth between 2020 and 2021, but its share price has fallen. Investors haven’t been happy with the scenario for 2022. However, Virgin Galactic focuses on space tourism and is expected to launch its service in 2023. It’s not certain because it’s already been pushed multiple times. Advance tickets are their main source of revenue, as they’re not operational now. Investments are a bet on their space tourism division.
- Astra Space Inc. (ASTR)
Astra Space Inc. is a vehicle-based company in Alameda, California. It was founded in October 2016, has 324 employees, and was incorporated in 2020. They offer services specifically for launching small, low-earth orbit satellites. Astra Space Inc. recently faced malfunctioning rockets that led to the loss of four NASA satellites. This incident dropped the market value.
After investigation, the company has announced contracts with launch providers and stated they will offer launch services daily.
Is this the right time to invest in space stocks?
More businesses are incorporating technologies developed by aerospace companies into their work. This shows that space-related companies will likely add more value to their stock. We can look further at the titans of the space industry, such as SpaceX, to get a deeper sense of where the industry is going. They have announced the Starship, the largest rocket ever built, which is reusable and has the highest payload capacity.
There are five of the best space stocks mentioned above and plenty more to invest in. As Blue Origin or SpaceX, like giant industries, aren’t publicly traded, and you can’t lift out their shares, it’s the right time to invest in space stocks. Apart from my five best stocks, many others are worthy of a place in your portfolio.
Companies include a variety of explorative specializations in satellite launching, space exploration, communication networks, and lasers. If investing in individual securities isn’t your thing, you can do this with ETFs to give yourself more space in the aerospace industry. Don’t forget, the sky has no limit, at least for the space industry.
Pros and Cons
- Huge growth potential to reach $1 trillion by 2040.
- Increasingly important for humanity
- Diverse options
- New industry
- High-risk volume
Space stocks FAQs
How good is space stock investing?
The space industry is new, and most publicly traded companies are either financially strong or close. Space debris-like risks exist, but the industry has developed enough to be worth a look. Read The Wrap: The Final Frontier For Profit for more information on investing in space stocks.
Are there any space-sock ETFs available for investment?
The ARK Space Exploration & Innovation ETF ($ARKX) and the Procure Space ETF ($UFO) are the only two ETFs available on the Stake platform. We can expect more ETFs in the future as the industry grows.
Is SpaceX publicly traded?
SpaceX is not publicly traded, and Elton Musk commented that it might never join the top space stocks list. However, Starlink is likely to go public in the next few years.
Should you invest in the space industry? Well, you’ll have to determine your portfolio goals and risk tolerance. The space industry is rapidly growing, but most companies are still immature, and stocks can see massive swings in value. If it makes you queasy, then it’s not for you. However, it’s a good option if you want to shoot for the stars.
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