Outer space has inspired and captivated humans ever since we’ve been aware of it. It took until 1969 for man to land on the moon. In the 55 years since then, technology has advanced rapidly. We are potentially within a few years of space travel and exploration for civilians. Tesla CEO Elon Musk has made it a mission to land on and inhabit Mars with his company SpaceX.
Is it worth investing in space stocks in 2024? The space industry represents the epitome of risk vs reward investment. These companies could explode if space travel eventually becomes commonplace. At the same time, they could go to zero if space exploration never takes off. If you have a higher risk tolerance, here are three secret space stocks that could fly higher in the next few years.
Boeing (BA)
Boeing (NYSE:BA) is an aerospace company that does not need any introduction, being one of the largest manufacturers of airplanes and space vehicles in the world. So far in 2024, Boeing has been one of the worst-performing stocks with a loss of more than 33.5%. Despite this, analysts have an average price target of $226.08 which is more than 40% higher than the current price.
It’s been a rough year so far for Boeing. Multiple airplanes have seen failures or malfunctions that have caused emergency landings around the world. Sentiment has been so negative that the CEO David Calhoun will step down at the end of the year. But at the end of the day, Boeing is part of a global duopoly when it comes to commercial airplane manufacturing. Until more competition comes in, investors need to have faith in Boeing to correct its errors and turn things around.
Boeing’s Price-to-Earnings ratio is out of wack right now because of its negative earnings in recent quarters. BA stock is the cheapest it has been since the COVID-19 pandemic currently trading at about 1.3x sales. Buying at these depressed levels can potentially pay off down the road.
Intuitive Machines (LUNR)
Intuitive Machines (NASDAQ:LUNR) is an American space exploration company that was founded in 2013. All four Wall Street analysts that cover LUNR have a buy rating for the stock, with an average price target of $12.25, nearly 130% higher than today’s price.
Is LUNR a meme stock? It closed its SPAC merger earlier this year and saw some volatile trading shortly after. But Intuitive Machines has some legitimate credentials as well. The company provided the first-ever commercial moon landing in March of this year. Intuitive Machines is said to be working with both SpaceX and NASA to make regular trips into space for the foreseeable future.
Given its recent debut on Wall Street, Intuitive Machines hasn’t disclosed much in the way of financial data. It has a very early valuation of 1.7x sales although revenue is expected to rise rapidly over the coming years. LUNR is a highly speculative play but one that could pay off if it continues to make successful trips to outer space.
Planet Labs (PL)
Planet Labs PBC (NYSE:PL) is an American tech company that specializes in Earth imagery. It was founded in 2010 and is based in San Francisco, California. Wall Street analysts have a one-year price target range of $3.00 to $7.00 with an average target of $4.56. This is nearly 170% higher than PL’s current price!
If you’ve never heard of Planet Labs, you aren’t alone. This is a $514 million company that operates in a very niche industry. Planet Labs manufactures miniature satellites, called Doves, which are sent into outer space. Each satellite has a high-powered telescope that continuously scans and takes pictures of Earth. The company’s goal is to capture a full image of the Earth and be able to monitor changes based on a database of images and scans.
As you might expect, Planet Labs is not yet a profitable company so using a P/E ratio is somewhat useless. Shares of PL are trading at 2.2x sales which is the lowest it has traded since it went public in 2021. The company has grown sales in every quarter it has been public with a three-year CAGR of 21%.
On the date of publication, Ian Hartana and Vayun Chugh did not hold (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.
