We are all aware of the many companies doing amazing work in different sectors of our economies ecosystems. However, a little extra admiration has to be shown for the impressive companies engaging in advancing technology to help explore and navigate the next frontier. Are you curious to know which are the top space stocks that are doing wonderful work for our space orbit? Here are top space stocks to buy.
Leidos (LDOS)
Leidos Holdings (NYSE:LDOS) is a leading Fortune 500 science and technology company. Its focus encompasses engineering, technology and science solutions. It stands out as one of the three innovative space stocks to buy due to its contribution to high-impact space and military projects.
Recently, it teamed up with L3Harris Technologies (NYSE:LHX) for the ATHENA-S project, which seeks to deliver advanced ISR aircraft for the U.S. Army. By integrating their skills, they create a highly configurable platform with enhanced ISR capabilities. These aircraft will provide an operational picture of the battlefield, benefiting the U.S. and its allies.
Also, in the MACH-TB project, Leidos and his Dynetics team successfully completed a large-scale test for hypersonic systems. They developed an “experimental gliding body” (EGB) to collect data and validate hypersonic components. The test took place with Rocket Lab (NASDAQ:RKLB), which provides hypersonic launch capabilities under the MACH-TB project.
From a financial perspective, it has demonstrated solid performance. It posted revenues of $3.8 billion, an increase of 7%. Net income was $210 million, a margin of 5.5% and adjusted EBITDA was $420 million, a margin of 10.9%. Earnings per share were $1.50 or $1.80 on a non-GAAP basis. In addition, it generated cash flow from operations of $164 million and free cash flow of $124 million. Net bookings were $2.9 billion, with a book-to-order ratio of 0.8.
Rocket Lab (RKLB)
Rocket Lab is an innovative company dedicated to launching satellites and cargo into space efficiently and affordably. They use rockets called Electron to perform launches, noted for their focus on rocket reusability and speedy launches. Recently, they achieved a milestone by having the first stage of an Electron rocket return and land in the ocean, demonstrating their ability to reuse rockets and reduce costs.
Financially, the stock has been on an upswing, up 6.9% before the market opened and up an impressive 49.61% year-to-date through the last close. In the latest quarter, the company reported revenue of $62.05 million, slightly beating experts’ expectations. However, there was a small adjusted loss of $0.10 per share, compared to the expected loss of $0.09 per share.
Looking ahead, they have great prospects. They are expected to generate solid revenue in the second half of 2023, driven by a major contract with Globalstar for an ambitious space project.
In addition, they are working closely with NASA on a project related to climate change. They have secured an agreement to launch two satellites in 2024, demonstrating the space agencies’ confidence in their capabilities.
Lockheed Martin (LMT)
Lockheed Martin (NYSE:LMT) is a company noted for its focus on advanced technology, especially in the space arena. Its role in the industry is as an innovator and creator of special equipment to explore and protect outer space. It is recognized as one of the top three space stocks to buy because of its ability to transform the way we use and explore space.
In financial terms, they recorded sales of $15.1 billion, reflecting the market’s confidence in their products. They generated profits of $1.7 billion, demonstrating their strength in the market. In addition, they managed to generate $1.6 billion in cash and saved $1.3 billion in cash flow, a sign of their operating efficiency. They also stand out for returning $1.3 billion to shareholders through dividends and share buybacks, indicating their commitment to investors.
They also received an $816 million contract from the Space Development Agency (SDA) to build 36 special satellites. These satellites will help strengthen our missile detection and data transmission capabilities in space, which is essential for security.
In addition, the company worked on the design of a missile defense system, passing critical reviews to demonstrate its effectiveness and safety in protecting against enemy missile threats.
As of this writing, Gabriel Osorio-Mazzilli 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.
