| Stock | Price | 52 Week Range | Marketcap | EPS | Dividend Yield | Chart (24H) | Sector | Employees | Last Updated |
|---|---|---|---|---|---|---|---|---|---|
| $156.59 | 209.60B | 4.55 | 1.77% | Industrials | 186,000 | 9 hours ago | |||
| $592.54 | 84.84B | 27.08 | 1.56% | Industrials | 97,000 | 9 hours ago | |||
| $276.15 | 51.67B | 8.95 | 1.74% | Industrials | 47,000 | 9 hours ago |
Welcome to the thrilling juncture in the space sector, where monumental milestones and escalating investments are turning the cosmos into the next great investment opportunity. With the U.S. government’s sizable budget allocation for NASA, ambitious Moon and Mars missions on the horizon, and an optimistic outlook for space tourism and mining, this industry is set to propel forward. For savvy investors like you, the question isn’t if you should invest in space—it’s which stocks will elevate your portfolio to new heights.
NASA’s Artemis 2 mission, scheduled for a late 2024 launch, represents not just a leap for mankind but a stellar investment opportunity. With a forecasted $25.2 billion budget for NASA, space exploration is receiving one of its largest financial endorsements in recent history. By the early 2030s, space tourism is projected to become a $3 billion annual industry, and the potential value of asteroid 16 Psyche at $10,000 quadrillion heralds a whole new frontier in space mining. In this era of astronomical growth, investing in seasoned companies with robust financials is critical for harvesting lucrative gains.
Editor's Note: Analysis and insight for this article were originally sourced sourced from our friends at InvestorPlace
Raytheon Technologies (RTX)
Overview:
Raytheon Technologies (NYSE: RTX) stands at the forefront of space innovation, designing essential instruments and systems for NASA and the U.S. Space Force. Raytheon’s credentials make it a prime candidate for space-focused investors.
Investment Rationale:
- Secure Contracts: Recently, Raytheon secured significant contracts like $506 million for NASA’s Landsat Next Instrument Suite and $250 million for missile-detecting satellites. These validate its robust order book.
- Military Integration: The company has successfully demonstrated the Standard Missile-6 with U.S. Army systems, underlining the growing relevance of its defense segment.
- Stellar Financials: With a formidable $206 billion backlog and consistent nine-year profitability, Raytheon commands an impressive free cash flow (FCF) margin of 11%.
- Future Prospects: In a strategic shift, Raytheon is transitioning from being a prime contractor to a merchant supplier in the military satellite market, gearing up for unprecedented innovation and adaptability.
Additionally, the Overhead Persistent Infrared Battlespace Awareness Center hosts Raytheon’s advanced ground system for space-based missile warning. This system, named FORGE MDPAF, uses satellite data to offer timely missile warnings, highlighting the company’s role in military capabilities. Moreover, Raytheon developed next-generation imaging devices for Maxar’s WorldView Legion satellites, providing the highest commercial resolution for national security and commercial mapping endeavors.
Analyst Ratings and Forecasts:
| Category | Rating/Value |
|---|---|
| Consensus Rating | Overweight (4.33/5) |
| Average Price Target | $104.15 |
| Potential Gain | 14.1% |
| Number of Ratings | 20 |
Analysts’ Outlook: The analysts’ outlook for RTX is overwhelmingly positive, with 14 out of 20 analysts rating the stock as “Buy” or “Overweight”. The average price target of $104.15 suggests a potential gain of 14.1% from the current price. Analysts are optimistic about RTX’s prospects due to its strong defense and aerospace businesses, as well as its potential for growth through innovation and cost savings initiatives.
Northrop Grumman (NOC)
Overview:
Northrop Grumman (NYSE: NOC) is deeply involved in space logistics, satellite delivery, and defense communication systems, establishing itself as a critical player in the industry.
Investment Rationale:
- Stellar Deliveries and Contracts: Recent notable achievements include the Cygnus cargo mission, which delivered 8,200 pounds of supplies to the International Space Station, and providing two satellites for Space Norway’s Arctic Satellite Broadband Mission.
- Growth and Financials: Northrop Grumman reported a remarkable 7% sales growth, strong free cash flow over a billion dollars in Q2, and increased full-year earnings projections.
- Industry Edge: The company’s cutting-edge technology like the GEOStar-3 and ESPAStar-HP bus-based satellites bolster its leadership in military and commercial space tech.
- Positive Outlook: Analysts project a potential upside of around 10%, backed by Northrop’s solid 10-year profitability record and an FCF margin of 6.4%.
Potentially adding to its future success, Northrop Grumman and Boeing are the sole contenders for the Space Force’s Protected Tactical Satellite-Resilient program, set to launch anti-jamming satellites for secure communications in congested areas by 2025.
Analyst Ratings and Forecasts:
| Category | Rating/Value |
|---|---|
| Consensus Rating | Overweight (Buys: 10, Holds: 5, Sells: 0) |
| Average Price Target | $413.50 |
| Potential Gain | 12.4% |
| Number of Ratings | 15 |
Analysts’ Outlook: Analysts are overwhelmingly bullish on Northrop Grumman, with 10 out of 15 analysts recommending a “Buy” or “Overweight” rating. The average price target suggests a potential gain of 12.4% from the current price. Analysts are likely optimistic about the company’s strong revenue growth, solid margins, and robust backlog of orders.
L3Harris Technologies (LHX)
Overview:
L3Harris Technologies (NYSE: LHX) is a leader in space vehicle tracking, missile monitoring, and advanced aerospace systems, making it a top candidate for space-specific investments.
Investment Rationale:
- Major Contracts: The Space Development Agency awarded L3Harris $919 million to develop and build eighteen Tranche 2 Tracking Layer infrared space vehicles. These satellites will enable near-global missile warning and monitoring, allowing the U.S. military to respond to hypersonic missile threats.
- Technological Sophistication: Advances in electronic warfare (EW) systems and space vehicle engines for national security and NASA missions showcase L3Harris’s innovative capabilities.
- Financial Strength: Demonstrating a 13% Q2 sales growth, increases in non-GAAP EPS, and an improved revenue forecast, L3Harris underscores its financial robustness.
- Competitive Standing: A decade-long profitability record with an impressive FCF margin of 7% secures L3Harris’s growth and stability.
L3Harris’s subsidiary, Aerojet Rocketdyne, has modernized four RS-25 engines for NASA’s Artemis IV mission. Furthermore, the company’s new Viper Shield EW system, extensively tested at the U.S. Air Force Integrated Defense Avionics Laboratory, marks a significant leap in situational awareness and threat protection technologies for F-16 fighter jets.
Analyst Ratings and Forecasts:
| Metric | Rating/Value |
|---|---|
| Consensus Rating | Overweight |
| Average Price Target | $244.15 |
| Potential Gain | 14.1% |
| Number of Ratings | 15 |
Analysts’ Outlook: Analysts have a positive outlook on L3Harris Technologies, with a consensus rating of Overweight. The average price target of $244.15 suggests a potential gain of 14.1% from the current price. This implies that analysts believe the stock has upside potential and is a good investment opportunity.
As we stand on the precipice of a new age in space exploration and commercialization, the window of opportunity is wide open. Raytheon Technologies, Northrop Grumman, and L3Harris Technologies are perfectly poised to amplify your investment portfolio. Backed by substantial government support, groundbreaking technologies, and fortified financial health, they represent the vanguard of an industry that’s not just reaching for the stars but is well on its way to claiming them.