The Best Space Stocks Recommended by Wall Street Analysts

Today, we’re talking about the best space stocks to buy – that is, according to Wall Street experts. If you don’t want to get into the nitty-gritty, let’s jump straight to the 5 Best Space Stocks recommended by these analysts.

The space industry has been booming in recent years, becoming one of the fastest-growing sectors globally. McKinsey’s report suggests that the space industry might hit a whopping $1 trillion by the end of this decade, a big leap from $280 billion in 2010 and $447 billion in 2022.

A significant reason for this growth is the rise of companies launching satellites into space, doing tasks as diverse as tracking climate change to handling everyday card transactions.

Commercial space assets have been major money-makers for space companies. Governments worldwide are increasing their spending in the industry to ride this growth wave. According to the Space Foundation, space industry businesses pulled in over $420 billion in revenue at the end of 2022, up from $396 billion the previous year. A good chunk of this money, about one-third, came from supporting space activities, like maintaining ground stations.

Pexels | Dang | The space industry has been booming in recent years, becoming one of the fastest-growing sectors globally.

The big money for space companies came from selling satellite data, making up almost 39% of all commercial revenue in 2022. What’s remarkable is that many of these companies are startups. Despite inflation and reduced interest from venture capital due to high interest rates, space startups attracted $20 billion from Wall Street last year, a drop from the record $47 billion in 2021.

Lesley Conn, the director of research at the Space Foundation, sees the commercial space sector as a crucial part of the overall space economy. She predicts that the market will see a real acceleration and expansion of space and space assets in five years. Some of the top players in this context include The Boeing Company, RTX Corporation, and Lockheed Martin Corporation, among others discussed below.

Beyond these big players, some smaller companies are making their mark. Take Rocket Lab USA, Inc., a California-based space firm that’s been a leader in rocket launches and returns. During the third-quarter earnings call, CEO Peter Beck shared growth plans for 2024 and highlighted the company’s performance during the 2023 fiscal year.

Now, let’s get to our list of the Best Space Stocks according to Wall Street Analysts:

Howmet Aerospace Inc. (NYSE:HWM) 

Howmetaerospace | Instagram | Howmet Aerospace Inc. (NYSE:HWM) in Pennsylvania focuses on aerospace engineering solutions.

Howmet Aerospace Inc. (NYSE:HWM) in Pennsylvania focuses on aerospace engineering solutions. On November 17, Argus, an investment advisory, maintained a Buy rating, raising the target price to $58 due to improved finances.

Despite challenges, Howmet is resilient. In Q3 2023, 46 hedge funds held $1.4 billion in HWM stocks, down from the previous quarter’s $2.4 billion. Wall Street analysts rate Howmet Aerospace among the top space stocks, alongside Boeing (NYSE:BA), RTX Corporation (NYSE:RTX), and Lockheed Martin (NYSE:LMT).

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) 

With 11 hedge fund holders, this California-based company has a 10% upside potential. Baird, an investment advisory, maintains an Outperform rating, emphasizing continued strength in the Space portfolio.

Northrop Grumman Corporation (NYSE:NOC) 

Northrop Grumman (NYSE:NOC) is a leading global aerospace and defense company. On October 30, Argus, an investment advisory, maintained a Buy rating on NOC stock, raising the target price to $520. They highlighted international revenue growth and Space Systems. With 35 hedge funds holding $1 billion in NOC stocks as of Q3 2023, it’s a top space stock alongside Boeing, RTX Corporation, and Lockheed Martin.

Lockheed Martin Corporation (NYSE:LMT) 

Lockheed | Instagram | This security and aerospace firm, with 60 hedge fund holders, has a 14% upside potential.

Lockheed Martin (NYSE:LMT) is a security and aerospace company. On October 18, Argus, an investment advisory, said it’s a good time to buy Lockheed Martin stock at $510 per share. They believe recent share weakness is a chance for investors because the company is doing well, revenue is growing, and the balance sheet is strong. In terms of shareholders, Citadel Investment Group from Chicago holds a significant stake, owning 693,300 shares worth over $283 million.

The Boeing Company (NYSE:BA) 

Boeing (NYSE:BA) is a global aerospace company dealing with commercial jetliners, military aircraft, and space systems. On December 20, Deutsche Bank maintained a Buy rating for Boeing stock at $320. They cited ongoing flight data, including a pre-delivery flight for a Chinese airline, indicating a potential resumption of 737 MAX jet deliveries to China.

In Q3 2023, 64 hedge funds tracked by Insider Monkey held Boeing stakes worth $2.9 billion, up from 57 funds in the previous quarter, with stakes totaling $2.1 billion.

These are the top space stocks recommended by Wall Street analysts. Their positive outlooks and the industry’s rapid growth make them attractive choices for investors looking to explore the exciting world of space-related businesses. Stay tuned for more insights into these and other space stocks.