It may not be prevalent in our day to day lives right now, but space is definitely the future. The number of rocket launches per year is increasing worldwide. There were 211 successful launches in 2023, marking an almost 20% increase from 2022.
The space economy market is growing quickly. It is expected to reach a $1.1 trillion evaluation by 2030 growing at an 8.9% CAGR. Government subsidization of space exploration initiatives, as well as private funding, are factors making this growth rate possible. Additionally, increased demand for satellites for telecommunication and meteorological purposes will further drive the space economy market in the future.
With space being one of the key markets in the future, make sure you don’t miss out on these space stocks to buy now
A Lockheed Martin (LMT) Space Systems sign in Sunnyvale, California.
Source: Ken Wolter / Shutterstock.com
Lockheed Martin (NYSE:LMT) is a leader within the multinational defense and aerospace industry. Yahoo! Finance reports 22 analysts predicting a one-year price range on LMT between $354.34 and $504.50, with an average of $450.57.
Financials for LMT aren’t looking too strong for Q1 2024. Revenue has grown 13.68% year-over-year (YOY), but operating expenses have grown 38.26% YOY as well. While the topline has grown, this can be seen in affecting the company’s bottom line with net income down 8.53% YOY. However, a silver lining is that management is improving with regards to responsibilities. Cash from financing has increased 106.02% and free cash flow has grown 0.2% YOY, showing that management is improving profitability through their actions to some extent.
Surprisingly, Lockheed Martin shows promise in its future. The company has landed a $4.6 million contract from the Defense Advanced Research Projects Agency (DARPA). Its objective is to develop ML training methods, training AI agents to make informed decisions by considering simultaneous factors in beyond visual range (BVR) aerial missions. A favorable result from this partnership, could gain bigger contracts for LMT from DARPA or similar organizations. With a partnership that paints a positive outlook for LMT, it’s one of the space stocks to buy now.
Kratos Defense and Security (KTOS)
The front of a Kratos (KTOS) office in Silicon Valley.
Source: Michael Vi / Shutterstock.com
Kratos Defense and Security (NASDAQ:KTOS) is a technology company that specializes in military electronics, but also works on satellite communication technologies. Yahoo! Finance reports seven analysts predicting a one-year price range on KTOS between $19 and $27, with an average price target of $23.64.
KTOS shows strong financials for Q1 2024. The company demolished earnings expectations for both revenue and EPS. Revenue grew 19.59% YOY, and it did so sustainably by outpacing operational expenditure growth. Net income has grown over 118% YOY, demonstrating strong profitability from KTOS. Additionally, the company’s balance sheet looks strong with assets growing and liabilities decreasing for the quarter. The company has seen growth within its space division recently. KTOS has announced that its virtual satellite communications ground system, OpenSpace, has been utilized as a part of the BlueHalo Satellite Communication Augmentation Resource (SCAR) program in partnership with the U.S. Space Force (USSF). With OpenSpace being crucial on the backend of BlueHalo’s $1.4 billion dollar collaboration project, KTOS stands to benefit. The future looks bright for KTOS, making it one of the space stocks to buy now for investors.
Safran (SAFRY)
a private plane inside a hangar is prepared for a flight. represent aerospace stocks
Source: Shutterstock
Safran (OTCMKTS:SAFRY) is a French aerospace and defense corporation that designs aircraft engines and spacecraft propulsion systems primarily. Yahoo! Finance reports two analysts predicting a one-year price range on SAFRY between $68.01 and $69.94, with an average price target of $68.98.
SAFRY demonstrates robust financials for Q4 2023, with revenue and EPS showing marked YOY increases. Profitability isn’t an issue at all, with net income increasing 21.34% YOY. Additionally, SAFRY shows signs of being undervalued with a 7.26 forward P/E ratio significantly below the sector median.
SAFRY is developing laser optical communications technology. The specifics include a terminal sending encrypted data in a laser beam, and decoding it at the receiving terminal. In addition to “no risk of data interception,” information can travel speeds up to 50 GB/s. While there are difficulties in establishing an undisturbed line of sight between two terminals, the potential applications in military and research are encouraging. SAFRY is also partnering with MTU Aero Engines (OTCMKTS:MTUAF) to form a joint venture called European Military Rotorcraft Engine Alliance (EURA). With the goal of manufacturing European military helicopter engines, this venture strengthens each company’s aerospace projects through government contracts. Innovations and a joint venture make SAFRY one of the compelling space stocks to buy now.
On the date of publication, Matthew Rodrigues 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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Matthew Rodrigues is a college student studying Business at UC Berkeley Haas. He believes detailed research and correct interpretation of current events is what leads to investment success.
