I suppose that if you have enough time, any solid candidate for space stocks has the opportunity to turn $10,000 into $1 million. Still, if you want that million as quickly as possible, you’re going to have to accept huge risks. I don’t make the rules – that’s just the way that it is.
Understanding this, the upside prospect for space stocks is quite compelling. According to a report by McKinsey & Company, the sector has already grown to approximately $4447 billion. That’s up from $280 billion in 2010. Further, projections call for a $1 trillion valuation by 2030.
It’s likely that not every enterprise in the space economy will survive, let alone contribute to the stratospheric projection. Still, if you’ve got the nerve, these space stocks just might get the job done.
Rocket Lab USA (RKLB)
Billed as an end-to-end space company delivering reliable launch services, space craft satellite components and on-orbit management, Rocket Lab USA (NASDAQ:RKLB) ranks among the most popular space stocks. Investors will know more about the company’s immediate trajectory when it releases its fourth-quarter earnings report, scheduled for Feb. 27.
Analysts anticipate that the company will deliver a loss per share of 8 cents. In the year-ago quarter, Rocket Lab posted a loss of 8 cents a share against a target of 6 cents a share in the red. Understandably, the lack of a clear path to profitability hampers RKLB stock. Still, it’s worth pointing out that on a trailing-12-month (TTM) basis, the company generated $236.4 million in sales, above the 2022 count of $211 million.
Of course, much of the viability of Rocket Lab will center on its continued successful launches of its rocket Neutron. One major positive is that management benefits from a cash-to-debt ratio of 1.78X. This stat ranks better than over 65% of the aerospace and defense industry.
Analysts have high hopes, rating shares a consensus strong buy with a $7.86 price target, implying nearly 63% upside potential.
BlackSky Technology (BKSY)
A real-time, space-based intelligence platform that empowers informed decision-making, BlackSky Technology (NYSE:BKSY) offers an earth-imaging service. Per its website, the company’s main advantages are timely insights from dawn to dusk. As well, BlackSky facilitates what it terms enhanced situational awareness with 3D and motion analyses.
Naturally, the technology specialist offers significant relevancies for defense and security-related endeavors. From detecting buildings, vessels and aircraft to assessing moving objects and calculating their vectors, BlackSky’s enterprise-level clients – which cover various government agencies and commercial businesses – can better plot next moves.
Based on frontline developments in current geopolitical flashpoints, eyes-in-the-sky intelligence has been pivotal in addressing threats. In addition, operators in various fields can make strategically superior decisions. Based on BlackSky’s core relevancies, these decisions can potentially save lives.
Like other compelling but speculative space stocks, BKSY is currently known for its revenue growth. However, it recently posted a small amount of net income in Q3 last year. Analysts will be hoping for more, pegging shares a moderate buy with a $3 price target.
Terran Orbital (LLAP)
Right on the cusp of being a literal penny stock, Terran Orbital (NYSE:LLAP) is not for the faint of heart. However, if you’re really swinging for the fences regarding space stocks that can turn $10,000 into $1 million, you might look into LLAP. Based in Boca Raton, Florida, Terran features a cutting-edge lineup of standard spacecraft platforms, thus setting a new standard in satellite technology and innovation.
Per its website, Terran’s platforms utilize interchangeable components and modules. Therefore, the underlying modularity enables the company’s enterprise-level clients to customize and configure their satellites for various sizes and mission requirements. One of the core relevancies of Terran is centered on scientific research. However, its technologies also cater to defense solutions.
As exciting as the business sounds on paper, investors must be prepared for volatility risk. Since the start of the year, LLAP lost almost 21% of equity value. And like other space stocks, the enterprise presents an ambiguous path to eventual profitability. That said, LLAP benefits from robust revenue growth.
Analysts view shares as a consensus strong buy with a $5.84 price target, implying 484% 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.
