10 Best Space Stocks To Buy According To Analysts

4. Iridium Communications Inc. (NASDAQ:IRDM)

Average Share Price Upside Potential as of January 16: 48.98%

Number of Hedge Fund Holders: 35

Iridium Communications Inc. (NASDAQ:IRDM) is an American company, headquartered in Virginia, that provides communication services through its wide satellite network that leverages weather-resistant L-band frequencies. The company continues to attract investor interest because of its strong market presence, growth prospects, and recent shareholder-focused initiatives. Iridium Communications Inc. (NASDAQ:IRDM) also boasts a dependable customer base, featuring major companies such as Honeywell, Garmin, and Caterpillar.

The satellite market is witnessing impressive growth, spurred by ongoing geopolitical tussles and the rise of the AI era, which has led to increased demand for autonomous technologies and national security applications. In June 2024, the Space Systems Command awarded Iridium Communications Inc. (NASDAQ:IRDM) a $94 million contract – with a potential value of $103 million should a need arise – for Enhanced Mobile Satellite Services (EMSS) capabilities and security sustainment services (ECS3).

The stock’s appeal has also been bolstered through substantial shareholder returns. The company has a robust share repurchase program. During the third quarter of fiscal 2024, it approved another $500 million in buybacks, raising the total authorization amount to $1.5 billion since 2021. Iridium Communications Inc. (NASDAQ:IRDM) also paid a dividend of $0.14 per share during Q3, putting it on track to return $65 million to shareholders through cash dividends in 2024.

Revenue for the quarter stood at $212.8 million, up 8% from last year. The improvement was fueled by growth in the company’s commercial businesses and strength in engineering and support revenue. Operational EBITDA reached a record $124.4 million in Q3, driven by an expansion in service revenue.

Iridium Communications Inc. (NASDAQ:IRDM) is one of the best space stocks to buy according to analysts, with a consensus Buy rating and an average share price upside potential of nearly 49%.