10 Best Space Stocks To Buy According To Analysts

6. Lockheed Martin Corporation (NYSE:LMT)

Average Share Price Upside Potential as of January 16: 21.96%

Number of Hedge Fund Holders: 58

Lockheed Martin Corporation (NYSE:LMT) is the largest defense contractor in the world. In fiscal 2023, it generated over $67 billion in revenue, of which 96% came from defense-related sales. The company specializes in the research, design, and development of advanced technology systems, products, and services.

It is the maker of the famed F-35 fifth-generation fighter jet. For the last several decades, the company has also been partnering with government and commercial customers to deliver breakthrough technologies aimed at further discovering space. This has included projects to enhance space exploration, create climate observation satellites, and defend the U.S. from adversarial threats.

In early 2024, the Pentagon awarded Lockheed Martin, L3Harris, and Sierra Space a $2.5 billion contract to build 54 satellites as part of the Proliferated Warfighter Space Architecture network of the U.S. military. Each company will be responsible for building 18 satellites, of which 16 will be dedicated to missile tracking and warning, while two will come with missile defense infrared sensors. Lockheed Martin Corporation (NYSE:LMT)’s share of the contract is valued at $890 million.

In its Q3 2024 earnings call on October 21, the company reported net sales of $17.1 billion for the quarter, up 1.2% year-over-year, driven by robust performances from Missiles and Fire Control, and Rotary and Mission Systems segments. Net earnings stood at $1.6 billion, translating to an EPS of $6.80 per share, which beat expectations of $6.54.

Lockheed Martin Corporation (NYSE:LMT) generated $3.075 billion in sales from its Space segment, down 1% from last year, due to lower net sales for the commercial civil space. A major highlight of the quarter was NASA awarding a $297 million contract to design and build GeoXO Lightning Mapper (LMX) instruments for NOAA.

Geopolitical tensions in different parts of the world have positioned Lockheed Martin Corporation (NYSE:LMT) for continued growth as it is the partner of choice for most American allies. Wall Street analysts are bullish on the stock with a consensus Buy rating and an average share price upside potential of nearly 22, making it one of the best space stocks to buy according to analysts.