In this piece, we will take a look at the five best space stocks to buy according to hedge funds. For more stocks, head on to 10 Best Space Stocks to Buy According to Hedge Funds.
5. The Boeing Company (NYSE:BA)
Number of Hedge Fund Holders: 51
The Boeing Company (NYSE:BA) is one of the largest aerospace companies in the world. It caters to the needs of the commercial and defense aviation sectors, alongside manufacturing spacecraft and other systems and subsystems for space exploration. The company is headquartered in Chicago, Illinois, the United States.
The Boeing Company (NYSE:BA) is a central part of NASA’s Artemis program. The company has built the Space Launch System (SLS) rocket which will be the workhorse of the program. As if this weren’t enough, it has also helped manufacture two spacecraft for NASA – under the Commercial Crew Program (CCP) and Artemis.
The first of these is the Starliner spacecraft which will launch both crewed and cargo missions to the International Space Station (ISS). The second is Orion, which will be the only spacecraft that is capable of launching on the SLS with astronauts for the first leg of their journey to the Moon. 51 out of the 895 hedge funds polled by Insider Monkey during Q2 2022 had held a stake in The Boeing Company (NYSE:BA).
Out of these, Andreas Halvorsen’s Viking Global is The Boeing Company (NYSE:BA)’s largest investor. It owns 1.3 million shares that are worth $190 million.
Meridian Funds mentioned the company in its Q2 2022 investor letter. Here is what the fund said:
“We similarly remained invested in largely out-of-favor The Boeing Company (NYSE:BA), a global leader in developing and producing commercial jet aircraft. Due to some self-inflicted wounds and a bit of bad luck, as well as dramatic declines in air travel early in the pandemic, investor sentiment for this company has simply been awful. As part of our contrarian thinking, however, we view the business as critical to global transportation needs and see multiple catalysts to improve sentiment. In addition to the current surge in air travel worldwide, ramped up production of the 737 MAX aircraft and the pending restart of 787 Dreamliner deliveries should help turn broader sentiment. Additionally, we anticipate a meaningful inflection in cash flow as Boeing starts delivering aircraft currently in storage as well as the eventual expansion of its production in both core platforms.”
4. Lockheed Martin Corporation (NYSE:LMT)
Number of Hedge Fund Holders: 55
Lockheed Martin Corporation (NYSE:LMT) is an American defense and aerospace company. It is one of the oldest space companies in the world and has its roots in the X-17 program of the 1950s which aimed to test rocket reentry and propulsion.
Lockheed Martin Corporation (NYSE:LMT)’s space division sees the firm manufacture a host of different spacecraft, satellites, and missile systems. The firm built the external tank for NASA’s space shuttle, the Hubble telescope, and four Mars landers and reconnaissance satellites.
Lockheed Martin Corporation (NYSE:LMT) is also the primary manufacturer of NASA’s Orion spacecraft, and the firm is also responsible for manufacturing the latest versions of the Global Positioning Satellites (GPS) for the United States Military. As this year’s second quarter ended, 55 out of the 895 hedge funds polled by Insider Monkey had held a stake in the company.
Lockheed Martin Corporation (NYSE:LMT)’s largest investor is Rajiv Jain’s GQG Partners which owns two million shares that are worth $877 million.
Vitava Fund mentioned the company in its Q3 2022 investor letter. Here is what the fund said:
“LMT is one of the world’s largest aerospace and defence companies. The war in Ukraine has reminded investors and the wider public just how important these companies are. The aerospace and defence industry in the USA is an established oligopoly. This means that a few large firms play a dominant role. While collectively they comprise an oligopoly, individually they often have monopoly positions in particular narrower segments. Their main counterparty is the US government, a key customer in what is known as a monopsonist position. This is a rather unusual situation, but one that is very advantageous for companies such as LMT.
3. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 71
QUALCOMM Incorporated (NASDAQ:QCOM) is an American company that is responsible for manufacturing the bulk of smartphone processors, graphics processing units (GPUs), and modems used in Android devices. The company is headquartered in San Diego, California.
While QUALCOMM Incorporated (NASDAQ:QCOM) is primarily associated with consumer technology, the firm has also played a crucial role in the astronautics sector. The company’s Qualcomm Flight Platform, originally designed for consumer robotics, helped NASA’s Ingenuity helicopter make the first powered flight on Mars last year, using altitude and accelerometer sensor data to calibrate the helicopter to Mars’ complicated atmospheric pressure and gravity.
QUALCOMM Incorporated (NASDAQ:QCOM)’s software is also used by NASA’s Perseverance rover, which lets it process the images that are received from the helicopter. Insider Monkey’s June quarter of 2022 survey of 895 hedge funds revealed that 71 had held a stake in QUALCOMM Incorporated (NASDAQ:QCOM).
QUALCOMM Incorporated (NASDAQ:QCOM)’s largest investor is Panayotis Takis Sparaggis’s Alkeon Capital Management which owns 4.2 million shares that are worth $541 million.
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 84
NVIDIA Corporation (NASDAQ:NVDA) is an American semiconductor designer and seller that is responsible for selling products that are used in a wide variety of applications such as product design, video gaming, personal computing, and cloud computing. The firm is headquartered in Santa Clara, California.
NVIDIA Corporation (NASDAQ:NVDA) plays a key role in both aerospace manufacturing and planning, as its graphics processing units (GPUs) are among the most powerful in the world. A whopping 3,312 NVIDIA V100 Tensor Core GPUs are used by NASA to run countless simulations for retro-propulsive crewed Mars landers. These simulations study the effects of firing the lander’s engine in the opposite direction to slow down its speed as it lands.
As if 3,312 GPUs weren’t enough, the Department of Energy’s Summit Supercomputer which uses a whopping 27,000 A100s is simulating the mixing of propellant and oxidizer in a rocket engine to improve combustion efficiency. By the end of this year’s second quarter, 84 out of the 895 hedge funds polled by Insider Monkey had owned NVIDIA Corporation (NASDAQ:NVDA)’s shares.
NVIDIA Corporation (NASDAQ:NVDA)’s largest investor in our database is Ken Fisher’s Fisher Asset Management which owns 7.5 million shares that are worth $1 billion.
Baron Funds mentioned the company in its Q2 2022 investor letter. Here is what the fund said:
“At the company-specific level, there was a broad correction across the entire portfolio. While four of our holdings contributed to performance, the contribution to absolute returns was less than 100bps combined, as unfortunately none of them were large enough to move the needle. We had 16 investments detracting over 100bps each with NVIDIA (NASDAQ:NVDA), our second largest detractor, costing the Fund 254bps.
NVIDIA’s stock was hit even harder, down 44.4%, impacted by concerns over the health of the consumer, dramatic declines in crypto, and COVID-related lockdowns in China. Despite the sell-off and the increased near-term volatility in its gaming business, NVIDIA’s revenues grew 46% year-over-year with 48% operating margins, driven by continued strength in its data center business as companies across industries adopt AI and ML…” (Click here to see the full text)
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 252
Amazon.com, Inc. (NASDAQ:AMZN) is the world’s largest electronic commerce retailer, which has also spread its presence into a variety of other industries over the years. These include consumer electronics, cloud computing, and more important, satellite internet.
Amazon.com, Inc. (NASDAQ:AMZN) is designing the Kuiper satellite internet constellation, which like SpaceX’s Starlink, will also use low Earth orbit satellites to beam down the Internet all over the globe. The satellite constellation consists of more than three thousand satellites, and Amazon has secured 92 launches with three different providers to launch its constellation.
The first of Amazon.com, Inc. (NASDAQ:AMZN)’s Kuiper satellites are slated to be launched next year, and the company also builds the user terminals or dishes for its internet service to be used by the end consumer for internet connectivity. As part of their Q2 2022 holdings, 252 out of the 895 hedge funds polled by Insider Monkey had invested in the company.
Out of these, Ken Fisher’s Fisher Asset Management is Amazon.com, Inc. (NASDAQ:AMZN)’s largest investor. It owns 48 million shares that are worth $5.1 billion.
Lakehouse Capital mentioned the company in its Q2 2022 investor letter. Here is what the fund said:
“Amazon.com, Inc. (NASDAQ:AMZN) proved resilient in the face of ongoing macro pressures and delivered a strong quarterly result along with “better-than-feared” guidance for the third quarter. Net sales increased 7% year-on-year (10% constant currency) to $121.2 billion, while operating profit declined 57% to $3.3 billion. The drop in operating profit was attributable not only to external macro factors, such as elevated shipping and fuel costs, but also lower productivity and efficiency costs as a result of some overcapacity on the back of its recent investment cycle. It was pleasing to see that the company has begun to make progress on the more controllable costs, particularly productivity and staffing, with headcount, for example, down almost 100,000 over the quarter. We continue to believe Amazon is well positioned to manage these short-term issues and remains on track to deliver significant profit improvements over the next twelve months.
Disclosure: None. You can also take a look at 11 Best Cruise Stocks To Buy and 10 Best Stocks to Buy Now According to Billionaire Andreas Halvorsen.
