5 Best Space Stocks To Buy According To Hedge Funds

1. The Boeing Company (NYSE:BA)

Number of Hedge Fund Holders: 59   

The Boeing Company (NYSE:BA) is placed first on our list of 11 best space stocks to buy according to hedge funds. The company makes and sells aerospace products. It operates from Illinois. 

On September 29, investment advisory Bernstein upgraded The Boeing Company (NYSE:BA) stock to Outperform from Market Perform and raised the price target to $279 from $252, noting that the global travel industry was rebounding and would benefit the aerospace firm. 

At the end of the second quarter of 2021, 59 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in The Boeing Company (NYSE:BA), the same as in the preceding quarter worth $1.4 billion.

In its Q1 2020 investor letter, Miller Value Partners, an asset management firm, highlighted a few stocks and The Boeing Company (NYSE:BA) was one of them. Here is what the fund said:

“We’ve known Boeing for a long time. It’s always been a high quality company that’s traded for a premium valuation owing to its position as a global duopoly. We’d looked at it recently after weakness due to its highly publicized Max 737 issues, but it never got cheap enough for us to pull the trigger. After the pandemic, the stock went into freefall as its customer bases’ business dried up and people worried about its liquidity. The stock fell from $338 on February 19th when the S&P hit its high to a low of $89. We bought the stock after the new CEO Dave Calhoun said publicly that it would not take government capital if it required equity dilution because it had many other options. Our average price is just above $120 where it was trading for less than 7x what it earned in 2018. It will likely take a while to normalize to those earnings levels, but this business will survive and ultimately we will own a leader in a global duopoly. Even on depressed forecasts, the company currently has about a 10-15% free cash flow yield. If and when the economy normalizes, we think Boeing could be worth more than double its current price.”

You can also take a peek at 10 Best Stocks to Buy According to Billionaire Ken Fisher and 10 Best Stocks to Buy for the Next Ten Years.

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