This article looks at the 10 best space stocks to buy according to analysts. We also dive deep into American dominance in space technology.
Space exploration continues to be a key area of research for scientists. In recent decades, it has attracted interest from security experts globally, given the wide use of satellites for peaceful military purposes, such as navigation, intelligence gathering, and military communications.
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Both the United States and the Soviet Union had come close during the Cold War to developing satellites that were capable of striking targets on the surface of Earth. However, all efforts were put to a halt with the 1967 Outer Space Treaty that bans countries from non-peaceful activities in space, including stationing weapons of mass destruction.
The United States continues to dominate space, with the most number of active satellites and the largest space budget. Home-based aerospace companies have played a key role in ensuring this strength. Space Based-Infrared System, or SBIRS, which is one of the United States Space Force’s high priority programs, has further enhanced the country’s space power with capabilities to detect missile launches and provide early warning.
Several pure-play space stocks have surged following Trump’s victory in the November 2024 presidential elections, driven by what analysts are describing as the ‘Trump-Elon trade’. While talking to CNBC, Andrew Chanin, the CEO of ProcureAM, LLC, which runs an ETF with exposure to space stocks, believes the Trump-Elon partnership will prove to be a significant driving force for the industry.
“I don’t think anyone can underplay the potential catalyst that I don’t think many people were talking about before: the most important human in the history of the space industry having the ear of the president-elect, who in his past term found space important enough to create a separate branch of the military.”
Strong financial results during the third quarter of 2024 have also partly led the stock rally. Cantor Fitzgerald analyst, Andres Sheppard, has said there is a broader sentiment driving the stocks, such as demand for national security and ongoing work on key space projects.
“We’re seeing a big increase in investor inbounds. We’re getting calls and emails from institutional investors, which are finally starting to realize that this market is only going to continue to accelerate. It’s only going to continue to proliferate because of national security, because of the Artemis program to get the U.S. astronauts back on the moon, because of Elon’s ambitious goals of getting to Mars.”
Sheppard also stated that space stocks are benefitting from SpaceX being privately held, as investors look toward other companies in the industry to enhance their exposure to the space sector.
With that said, let’s shift focus and look at the 10 best space stocks to buy according to analysts.
A satellite being released from a launch vehicle, heading into space.
Methodology
We sifted through ETFs with exposure to the space sector and our previous articles on the industry to get a pool of space stocks. From there, we picked 10 stocks with the highest average share price upside potential and ranked them in ascending order of the metric.
We have only considered stocks that had at least three analyst ratings. All data is as of January 16, 2025. For perspective, we have also shared the hedge fund sentiment toward each stock, based on Insider Monkey’s database of over 900 prominent hedge funds as of Q3 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Space Stocks To Buy According To Analysts
10. Northrop Grumman Corporation (NYSE:NOC)
Average Share Price Upside Potential as of January 16: 15.43%
Number of Hedge Fund Holders: 48
Northrop Grumman Corporation (NYSE:NOC) is one of the largest aerospace and defense contractors in the world. It is the manufacturer of the B-21 Raider, the long-range, stealth strategic bomber, which is intended to replace the aging B-1B Lancer and B-2 Spirit fleets.
The company is also working on several critical contracts for the US Space Force (USSF). In December 2024, Northrop Grumman Corporation (NYSE:NOC) was awarded a contract extension for Phase 2 of its Next Gen OPIR Polar (NGP) for the USSF’s Space Systems Command. The multi-year award has moved the program into manufacturing, assembly, integration, and testing of ground systems and space vehicles.
This follows the successful completion of the Ground Critical Design Review and Program Critical Integration Review stages of the NGP. Using advanced sensors, the program is aimed at providing coverage of the North Pole to detect missile threats from adversaries, as the quickest path for these threats to the U.S. is from the Northern Hemisphere.
On October 24, Northrop Grumman Corporation (NYSE:NOC) announced financial results for the third quarter of fiscal 2024. The company generated sales of $10 billion, up 2% year-over-year, driven by a surge in demand for advanced weapons amid intense escalations in the Middle East and the Ukraine-Russia war. Net earnings totaled $1 billion, translating to a diluted EPS of $7, beating estimates of $6.08 per share.
NOC’s Space Systems sales dropped by $83 million, or 3%, during the quarter, due to the wind-down of work on the NGI and space programs, which impacted sales by $224 million. However, the segment experienced a $129 million increase in Space Development Agency (SDA) satellite programs and an uptick in sales across NOC’s remaining restricted space portfolio. Moreover, operating income was up 14% from last year, while the operating margin rate stood at 12%.
Northrop Grumman Corporation (NYSE:NOC) is among the best space stocks to buy according to analysts, with a consensus Buy rating, and an average share price upside potential of over 15%.
9. The Boeing Company (NYSE:BA)
Average Share Price Upside Potential as of January 16: 17.07%
Number of Hedge Fund Holders: 52
The Boeing Company (NYSE:BA) is a leading aerospace company that manufactures commercial airplanes, space systems, and defense equipment for customers in more than 150 countries.
2024 was a difficult year for The Boeing Company (NYSE:BA), with its share price losing 30% of its value. The year got off to the worst possible start in January, after a door plug of an Alaska Airlines 737 Max 9 flight fell off after takeoff. Since the incident, there has been a slowdown in the production of airplanes, with an increased focus on safety.
The company’s operations were also hampered by around 33,000 workers going on a seven-week strike, demanding higher wages, job security, and a restoration of their pension. Its problems were further aggravated when NASA in August decided against using The Boeing Company (NYSE:BA) capsule to bring back its two stranded astronauts to Earth, causing a reputational hit.
During Q3 2024, Boeing posted a revenue of $17.8 billion, down 1% from last year, due to lower commercial wide-body deliveries and the IAM strike. This resulted in a quarterly loss of over $6 billion. The Defense, Space & Security segment generated $5.5 billion in revenue and booked $8 billion in orders during the quarter.
Despite ongoing challenges, most analysts believe that The Boeing Company (NYSE:BA) is too big a company to fail, and with a backlog of orders worth $500 billion and international travel growing every year, it is bound to recover once the headwinds are over. Wall Street analysts anticipate a 17.07% uptick, on average, in Boeing’s share price, making it one of the best space stocks to buy according to analysts.
8. Spire Global, Inc. (NYSE:SPIR)
Average Share Price Upside Potential as of January 16: 17.43%
Number of Hedge Fund Holders: 1
Spire Global, Inc. (NYSE:SPIR) operates the world’s largest multipurpose satellite constellation. The company provides space-based data, analytics, and uses radio frequency technology to observe the Earth in real time. It is one of the best space stocks to buy according to analysts.
In September 2024, the company was awarded a one-year $3.8 million contract from the National Oceanic and Atmospheric Administration (NOAA) to provide satellite weather data, which will be used by NOAA for operational weather forecasts and climate research.
Earlier in the year in August, Spire Global, Inc. (NYSE:SPIR) announced receiving three multi-million contracts focused on national security, climate research, and weather forecasts, underpinning the company’s quest to improve life on the planet from space.
This included a $14 million contract awarded by the U.S. Air Force Research Laboratory (AFRL) to enhance situational awareness of the defense forces through satellites that detect and track moving objects on Earth. The contract will run for 48 months. The company also received a £3.5 million grant from the UK Space Agency to enhance global weather forecasting.
Spire Global, Inc. (NYSE:SPIR) achieved a milestone in new contract bookings during the third quarter of 2024, bringing in $40 million worth of contracts – the largest quarterly value of bookings in its history. The robust inflow of contracts has led to a general bullish sentiment around SPIR, with Wall Street analysts having a consensus Strong Buy rating for the stock.
7. HEICO Corporation (NYSE:HEI)
Average Share Price Upside Potential as of January 16: 17.70%
Number of Hedge Fund Holders: 57
HEICO Corporation (NYSE:HEI) is an American aerospace and technology company that specializes in manufacturing jet engines and aircraft component parts. It operates in two segments: Flight Support Group and Electronic Technologies Group. Space and other defense-related subcomponents are among the most significant markets for HEICO’s Electronic Technologies Group. These are widely used in satellites, aircraft, and unmanned aerial vehicles.
HEICO Corporation (NYSE:HEI)’s two subsidiaries, 3D PLUS and Exxelia, are credited for supplying critical mission components for India’s Chandrayaan-3 spacecraft, which landed on the Moon in 2023. They designed and produced EEPROM and SDRAM modules, EMI Filters, ESA space-qualified Tantalum Capacitors, and other inductors that were used by Chandrayaan-3.
On December 17, the company reported strong results for the fourth quarter of fiscal 2024, with net income increasing 35% from last year to reach a record $139.7 million. For the full year 2024, net income stood at a record $514.1 million, or $3.67 per diluted share, growing 27% year-over-year. HEICO Corporation (NYSE:HEI)’s board of directors also declared a semiannual cash dividend of $0.11 cents, to be paid in January 2025, marking the 93rd successive semiannual cash dividend since 1979.
For 2025, the company has forecast net sales growth across both business segments in anticipation of sustained demand for a majority of its products. HEICO Corporation (NYSE:HEI) 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 17.70%.
Hedge fund sentiment around the stock continues to improve as well. According to Insider Monkey’s database for Q3 2024, 57 hedge funds had investments in the company, up from 53 at the end of Q2. In November, Warren Buffett made a significant shift toward aerospace stocks with Berkshire Hathaway investing $185 million in HEICO Corporation (NYSE:HEI).
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.
5. L3Harris Technologies, Inc. (NYSE:LHX)
Average Share Price Upside Potential as of January 16: 26.59%
Number of Hedge Fund Holders: 40
L3Harris Technologies, Inc. (NYSE:LHX) is an American defense company, known for its wireless and night vision equipment, command and control systems, avionics, and terrestrial and spaceborne antennas. It was formed in 2019 after a merger between Harris Corporation and L3 Technologies.
The company produces propulsion and power systems for rockets, spacecraft, missiles, missile defense systems, and other tactical systems. LXH has been at the forefront of several critical space and missile programs for the United States military, reflecting its significance in the sector.
On January 7, U.S. Space Force’s Space Systems Command awarded L3Harris Technologies, Inc. (NYSE:LHX) a contract to design concepts for the Resilient GPS program, which will involve the procurement of small satellites that will augment existing constellations to provide resilience to civil and military GPS users.
The company is also working on a contract to build 18 infrared space vehicles for the SDA’s Tranche 2 Tracking Layer program to provide missile warning and tracking. The contract, awarded in January 2024, is valued at $919 million. Later that year in May, L3Harris Technologies, Inc. (NYSE:LHX) received an order from the Millennium Space Systems to build Electro-Optical Infrared Payloads for the SDA’s FOO Fighter Program.
During its Q3 2024 earnings call on October 24, LXH reported a quarterly revenue of $5.3 billion, up 8% from last year. Operating margins increased by 70 basis points to 15.7%, driven by continuing program executions and strong operational performance, with significant contributions from LHX NeXt. Non-GAAP diluted EPS was $3.34, growing 5% year-over-year.
The company acknowledged budget pressures on the space side but is hopeful of seeing increased growth starting in 2026 as more customers transition from aerial missions to space. L3Harris Technologies, Inc. (NYSE:LHX) is one of the best space stocks to buy according to analysts, with an average share price upside potential of 26.59% as of January 16.
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%.
3. AST SpaceMobile, Inc. (NASDAQ:ASTS)
Average Share Price Upside Potential as of January 16: 104.69%
Number of Hedge Fund Holders: 18
AST SpaceMobile, Inc. (NASDAQ:ASTS) is a satellite designer and manufacturer based in Midland, Texas. The company is focused on building a global cellular broadband network in space for smartphones.
In 2024, ASTS launched its first five BlueBird satellites. Each comes with a communications antennae covering 693 square feet. This is the largest-ever array deployed in low Earth orbit by a commercial spacecraft and is designed to communicate directly with cell phones. The company also partnered with key players like Verizon, AT&T, and Vodafone during the year, as it targets close to 100% nationwide coverage.
In November, AST SpaceMobile, Inc. (NASDAQ:ASTS) announced securing orbital launch capacity during 2025 and 2026 to enable space-based cellular broadband service coverage for the U.S., the American government, Japan, Europe, and other global strategic markets. It also recently secured three new contracts from the U.S. government, including being selected by the SDA as a prime contractor under the HALO program.
Contracts such as this coupled with existing partnerships with major telecom operators are likely to garner significant revenue for the company. Moreover, BlueBird satellites offering connectivity in underserved regions present a vast, untapped market for AST SpaceMobile, Inc. (NASDAQ:ASTS) services.
The company is also improving its liquidity position. During its recent Q3 2024 earnings call on November 15, ASTS announced ending the quarter with $518.9 million in cash, up from $287.6 million at the end of the second quarter. This was the first instance the satellite maker brought its cash balance above the $500 million mark. The improving cash position is expected to allow the company to quickly move ahead with its strategic objectives.
AST SpaceMobile, Inc. (NASDAQ:ASTS) is one of the best space stocks to buy according to analysts, with a consensus Strong Buy rating.
2. Viasat, Inc. (NASDAQ:VSAT)
Average Share Price Upside Potential as of January 16: 127.68%
Number of Hedge Fund Holders: 25
Viasat, Inc. (NASDAQ:VSAT) is a global communications company, specializing in high-speed satellite broadband and secure networking solutions. Several major commercial airlines and military clients rely on the company’s technology to deliver the internet in some of the most complex environments. VSAT is one of the best space stocks to buy according to analysts.
On November 6, the company announced financial results for Q2 FY 2025. Revenue for the quarter was $1.1 billion, down 8% from last year. However, if we exclude the impact of non-recurring contributions from the litigation settlement in Q2, the decline is just 1% and is attributed to lower Communication Services revenue. Net loss for the quarter stood at $138 million, compared to a loss of $767 million during the same period last year.
New contract awards in Q2 totaled $1.3 billion, setting a new record, driven by a strong performance by the Defense and Advanced Technologies segment, where year-over-year awards doubled, led by cybersecurity, space and mission systems, aviation connectivity services, and ground systems.
Viasat, Inc. (NASDAQ:VSAT)’s share price plummeted 70% in 2024 due to financial challenges and the intense competition it faces from Starlink. However, analysts view the dip as a likely lucrative speculative play. The 2023 acquisition of British satellite communication company, Inmarsat, is a significant move that could unlock substantial future potential for Viasat.
Wall Street analysts are bullish on the stock, with a consensus Buy rating and an average share price upside potential of 127.68%. Investor sentiment around the stock continues to improve as well. According to Insider Monkey’s database for Q3 2024, 25 hedge funds held a stake in the company, up from 17 at the end of the second quarter.
1. Virgin Galactic Holdings, Inc. (NYSE:SPCE)
Average Share Price Upside Potential as of January 16: 379.77%
Number of Hedge Fund Holders: 9
Virgin Galactic Holdings, Inc. (NYSE:SPCE) is an aerospace and space travel company, offering suborbital space flights for space tourists, researchers, and government agencies. The company’s operations also include the design, manufacturing, testing, and maintenance of its spaceflight system vehicles.
On November 6, SPCE provided its quarterly business update and declared financial results for the third quarter of fiscal 2024. CEO Michael Colglazier announced that the company’s spaceship program was on track to begin commercial operations in 2026. Virgin Galactic Holdings, Inc. (NYSE:SPCE) is also making progress on the Delta Program and is shifting to designing its new ‘mothership’ which is expected to accelerate growth for the company ahead.
SPCE flew its last batch of tourists to space this past June and has not flown a single customer since, as it has paused commercial space flights to focus on the production and testing of new Delta-class spaceplanes. This has impacted the company’s revenue, which was posted at a mere $0.4 million during the third quarter of 2024, dropping from $1.7 million in the prior year’s quarter.
With no flights happening, Virgin Galactic Holdings, Inc. (NYSE:SPCE)’s operating expenses also experienced a sharp decline. However, the company has been spending heavily on development efforts to boost space tourism. As a result, it made a net loss of $75 million during a quarter and had a cash burn rate of $118 million.
Despite that, Virgin Galactic Holdings, Inc. (NYSE:SPCE)’s liquidity position remains strong. It ended the quarter with $744 million of cash, cash equivalents, and marketable securities. It grew its share count by issuing 4.9 million shares of common stock, generating $37 million in gross proceeds.
With commercial flights set to resume in 2026, the company has just about enough time to sustain the ongoing cash burn rate, before operations resume. While Wall Street analysts have a consensus Hold rating for the stock, they anticipate a massive uptick in Virgin Galactic Holdings, Inc. (NYSE:SPCE)’s share price ahead.
Overall, SPCE ranks first among the 10 Best Space Stocks To Buy According To Analysts. While we acknowledge the potential of space companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SPCE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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