Space captivates all of us. Ever since the Apollo missions back in the 1960s, humanity has been reaching further and further into the solar system to explore our universe. We’ve poured hundreds of billions of dollars into research and have advanced our technological capabilities massively since then.
Many companies are now looking into how to capitalize from the worlds beyond Earth. Some are trying to commercialize flights out to space and there are even grand visions of a human society living in outer space on planets like Mars. It’s becoming increasingly likely that this may happen, which will greatly help as Earth moves towards overpopulation.
Thus, many companies are working to better understand outer space. However, this leads to the question for investors of which space companies are the best to invest in. Well, we have researched them for you and now present you with three space stocks primed for takeoff.
Virgin Galactic (SPCE)
Virgin Galactic (NYSE:SPCE) is a company that is known for its ambitious goal of taking humans on a large scale to outer space. The stock is down 70% in the past year which creates plenty of upside from the current price. In fact, Yahoo Finance analysts have an average one-year price target of around $2, which is almost double the current price.
The company currently is on track for its plans to launch its Delta passenger spacecraft by 2026. This will allow the company to reach increasing commercialization and improve the number of people that it can send to space per flight.
The stock is a bit of a speculative investment with the company still producing negative earnings-per-share (EPS). However, this is likely to change soon with EPS expected to grow by over 30% this year. Thus, considering the massive potential this company could have, investors would be buying in at a cheap price right now.
Rocket Lab (RKLB)
Rocket Lab (NASDAQ:RKLB) is a company that works to manufacture equipment for space and rocket launches. The stock is down 4% in the past year but Yahoo Finance analysts project an average one-year price of $7.57. This is far above the current price of around $4.40.
The company is working on a massive rocket called the Neutron. This rocket would be able to support deep space missions with its lightweight design. Thus, this technology is key to continued exploration of the cosmos.
This is again another company that is currently not profitable. However, it is not by much as the expected EPS for this year-end is negative 28 cents. This is a quickly growing company with revenue expected to soar by over 70% YOY. The valuations are a little high but it may be worth it for investors looking for an investment with potentially explosive returns.
Planet Labs (PL)
Planet Labs (NYSE:PL) is a company that works to capture images with satellite technology. The stock is down over 50% in the past year which leaves plenty of upside. Yahoo Finance analysts have an average one-year price target of $4.56 which is far above the current price of only around $1.93.
The company recently announced its Planet Insights Platform, allowing it to increase management capabilities for users interested in accessing satellite data. This should allow the company to expand its product portfolio.
With the stock being beaten down so much, the valuation is sitting at a great position. Right now, shares trade at a price-to-book ratio of just 1.02x. This is almost 60% below the sector median of 2.76x. EPS is also expected to grow by over double digits for the next few years. With this in mind, the stock may be worth buying into for a potential takeoff in the next few months.
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.
