Space stocks may have fallen back to earth.
But a select few still offer out-of-this-world opportunities. Look at Intuitive Machines (NASDAQ:LUNR), for example. On the news it landed a spacecraft on the moon, the stock rocketed from about $3 to a high of $13.25. Now, back to $6.40, it’s still a hot opportunity worth buying.
Even better, UBS analysts say the space travel market could rocket to $800 billion by 2030. Morgan Stanley says it could be worth $1 trillion by 2040.
In addition, according to Pew Research, “The space tourism industry is expected to expand significantly in coming decades, with multiple companies engaged in commercial spaceflight operations. Younger adults are more interested in orbiting Earth than older ones. About half of those ages 18 to 29 say they would definitely or probably be interested in orbiting the Earth in a private spacecraft.”
In short, space stocks still hold plenty of upside opportunities. Here are three “out of this world” opportunities investors may want to own today.
Rocket Lab USA (RKLB)
Rocket Labs (NASDAQ:RKLB) provides launch services and space systems solutions for the space and defense industries. And, it may be ready for take-off again.
For one, after a recent pullback to $4.05, it’s back to support dating back to July 2022. From here, it typically bounces higher, which we expect to see happen again shortly.
The company is racing to launch its newest Neutron rocket by Dec. 15 “to secure launch contracts under the third phase of the National Space Security Launch program,” as Seeking Alpha notes. Plus, demand for the company’s Electron rocket may have one of its busiest years on record. So far, it completed two launches and has another 23 launches booked.
It also launched a successful Electron rocket for the National Reconnaissance Office (NRO). This was also the first Rocket Lab launch for the NRO from the U.S. Before this one, it launched for the NRO from New Zealand.
With the growing demand for Electron rocket launches and solid growth potential, Rocket Lab USA could double, if not triple, with patience.
Planet Labs (PL)
Planet Labs (NYSE:PL) is a beaten-down Earth imaging stock based out of San Francisco with a good deal of upside potential.
According to Fortune Business Insights, the global satellite imaging market – worth about $3.27 billion in 2022 – could grow to $14.18 billion by 2030. Analysts at SkyQuest say it could be worth well over $27.36 billion by 2030. “The growing demand for earth observation satellites underscores the significance of this technology in addressing critical global challenges in the global satellite data services market,” they added.
In late 2023, Goldman Sachs reiterated its buy rating on Planet Labs, citing “a re-acceleration in organic revenue, expectation of positive EBITDA, a strong balance sheet, and valuation,” as noted at TipRanks.com.
The company just announced it will provide satellite imagery to the U.S. Navy’s Naval Information Warfare Center Pacific for vessel detection and monitoring.
From its current price of just $2.39, I’d like to see PL initially refill its bearish gap around $3. In the long term, I’d also like to see it refill its gap around $5.
ARK Space Exploration & Innovation ETF (ARKX)
Or, if you want to diversify with nearly 55 space-related holdings at a low cost, there’s the ARK Space Exploration & Innovation ETF (CBOE:ARKX).
Since the start of 2023, the ETF ran from about $12 to a high of $15.67. Now, back to $14.78, it’s just starting to trend higher again.
With an expense ratio of 0.75%, the ARKX ETF invests in orbital aerospace companies, suborbital aerospace companies, enabling technologies companies and aerospace beneficiary companies, which includes Internet access, imaging and global positioning systems.
Some of its top holdings include Trimble (NASDAQ:TRMB), which could be vital for satellite communications, Kratos Defense (NASDAQ:KTOS), Iridium Communications (NASDAQ:IRDM), L3Harris Technologies (NYSE:LHX) and Teradyne (NASDAQ:TER). Not only can the ARKX ETF offer you big exposure to dozens of space names, it does so at a low cost of less than $15 a share at the moment.
If you want to reduce your risk with volatile space stocks, go with the ARKX ETF.
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
