It’s a wild ride without a doubt but if you want the possibility of robust upswings, space stocks may be the way to go. Fundamentally, it seems that everyone’s attention is turned toward the stars.
While the desire for space exploration is rooted in scientific directives, it’d be disingenuous not to acknowledge the geopolitical gamesmanship at play. Further, with advancing technologies getting us closer to putting astronauts on Mars, space stocks have taken on even more prominence.
Even better, the sector doesn’t just focus on lofty academic endeavors. Exploring the environment our planetary bodies may yield significant innovations and conveniences at home. It’s no wonder, then, that McKinsey & Company reported that the broader space economy can potentially grow to $1 trillion by 2030.
Of course, if you want to extract the most rewards, you’re going to have to take the most risks. With that in mind, below are compelling speculative ideas for space stocks to buy.
Lockheed Martin (LMT)
While not the most adventurous idea among space stocks, Lockheed Martin (NYSE:LMT) offers a reasonable stepping stone into space stocks. Yes, primarily, the company commands a strong reputation in the defense industry. However, it’s also a significant player in the aerospace ecosystem, particularly the latter component of that key word.
One of the most visible projects that Lockheed is engaged in is Artemis. A directive by NASA to land the first woman and first person of color on the moon, Artemis will also collaborate with commercial and international partners and establish the first long-term presence on the moon. Eventually, the program will serve as the stepping stone to sending astronauts to Mars.
Here, Lockheed Martin is developing space habitats to support these ambitious directives. In fairness, President Biden slashing F-35 fighter jet orders for the 2025 budget hurt LMT stock. However, that also makes shares enticing for longer-term speculation.
Analysts rate shares a hold but with a $477.57 average price target. Further, the high-side target lands at $540.
Boeing (BA)
A company that just can’t seem to keep its nose clean for a sustained period, Boeing (NYSE:BA) used to be a sterling example of American manufacturing. However, the company’s 737 Max jetliner groundings trashed its reputation for good reason. And now, Boeing is in more hot water with the plane. I’m sure you’ve heard about the door flying off.
Anyways, it’s an ugly situation and naturally, the matter hurt BA stock. Since the start of the year, shares stumbled 20%. At the same time, when looking at the long-term perspective, Boeing represents one of the compelling space stocks to buy.
Thanks to its myriad innovations – including powering the launch system which is the only rocket capable of carry crew and large cargo to deep space in a single launch – BA should be on your watch list.
Despite the company’s missteps to put it diplomatically, analysts overall remain optimistic about Boeing. They peg shares as a consensus moderate buy with a $262.67 average price target. That implies over 30% upside potential.
Rocket Lab USA (RKLB)
If you want to extract serious returns from your space stocks, you’re going to need to dial up the risk. That’s what Rocket Lab USA (NASDAQ:RKLB) is for. Based in Long Beach, California, Rocket Lab specializes in end-to-end launch delivery services. As well, it provides spacecraft, components and on-orbit management. While popular among retail investors, it’s one of the most volatile ideas.
Since the beginning of the year, RKLB stock lost more than 16% of equity value. In the past 52 weeks, shares slipped more than 2% below parity. One critical area that investors are watching is the revenue growth trend. While the top line expanded sharply in the company’s early years, the trajectory has noticeably decelerated.
Still, RKLB stock hinges largely as a narrative play – and it offers a good one. The space enterprise has consistently set corporate milestones with its many satellite launches. So long as this narrative keeps up, Rocket Lab has a chance to rise in valuation.
Analysts rate shares a consensus strong buy with a $7.86 price target, implying 77% upside potential.
On the date of publication, Josh Enomoto 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.