Pursuing wealth in capital markets always carries its share of volatility, and space stocks present a compelling opportunity for the risk-taker. This relatively new and unpredictable segment is catching the eye of many investors, particularly those looking for sectors with the potential for astronomical growth.
A few stocks within the space sector could skyrocket to new highs in the long term, especially if industry analysts have hit the mark with their lofty predictions. Morgan Stanley‘s analysts, for instance, forecast a whopping $1 trillion worth for the sector by 2040, making this mighty attractive for those looking to buy Space Stocks.
The sector’s diversity offers an array of opportunities for those operating within the space economy, ranging from cutting-edge rocket science to advanced satellite technology. Hence, for those looking to take a slice of this pie, now could be an opportune moment to take a closer look at space stocks.
Planet Labs (PL)
Planet Labs (NYSE:PL) is an emerging Earth-imaging entity that uses its satellite fleet to capture daily images of our planet. By monitoring global changes and identifying trends, Planet Labs offers invaluable data that can help anticipate and address challenges across various sectors. Moreover, the scope of potential applications keeps many analysts optimistic about its future prospects. Analysts at Tipranks feel that PL stock could offer over an 71% upside from current price levels.
Despite these compelling opportunities, PL stock has been on a downward trajectory since its market debut in 2021. In the past year, the stock has plunged more than 20%, with the stock shedding 17% recently after posting guidance that fell below its expectations. Nevertheless, it is growing rapidly, delivering more than 40% sales growth on a year-over-year basis. However, the recent dip could potentially offer a unique entry point for investors who recognize the firm’s long-term promise.
ViaSat (VSAT)
With its expansive coverage area, ViaSat’s (NASDAQ:VSAT) geostationary satellites wield considerable influence over the telecommunications industry. The firm has established itself as a leading American telecommunications enterprise specializing in satellite internet service. It serves a massive customer base ranging from individual consumers to industrial clients, particularly the U.S. Department of Defense. Notably, in-flight connectivity (IFC) has emerged as a high-growth revenue stream for the firm.
The global telecommunications market was valued at a whopping $1.8 trillion last year and is projected to shoot for the stars, reaching $2.5 trillion by 2030. This impressive growth is fueled by surging demand for connectivity in burgeoning businesses, communities and advancements in network speed, such as 5G.
On the financial front, ViaSat continues to perform robustly. It’s achieved a stellar net income margin of more than 42%, comfortably outpacing the sector median by 1,900%. Additionally, analysts have the firm growing by more than 24.4%, standing out as a strong player in the burgeoning telecommunication landscape.
ARK Space Exploration & Innovation ETF (ARKX)
For investors willing to wager on the thrilling world of space and transformative technologies, ARK Space Exploration & Innovation ETF (BATS:ARKX) presents a compelling choice. This exchange-traded fund (ETF) allows investors to effectively diversify their investments across an array of securities in the space sector with a single investment, thereby reducing their portfolio risk substantially.
Guided by the foresight of Cathie Woods, the trailblazing head of ARK Investment Management, investors with a risk appetite can feel mighty confident in their investments. Over the years, Wood’s visionary approach has led investors to massive gains.
With a reasonable expense ratio of 0.70%, the fund focuses on exposure to space exploration, encapsulating multiple domains, including orbital and suborbital aerospace, enabling technologies, and others. The ETF took a beating amidst the risk-off market sentiment but remains poised for incredible gains ahead.
On the date of publication, Muslim Farooque 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
