I chose these three space stocks to buy based on their long-term fundamentals. I believe that these firms could bounce back faster after a sell-off compared with more speculative options on the market.
The one drawback of these firms is that they are priced fairly, but a drop in their stock prices could help mitigate or eliminate the main objections to adding them to one’s portfolio. In some cases, the space industry is a growth driver for the company, as opposed to being its sole source of future earnings or revenue.
So, here are three spaces stocks for investors to consider adding to their portfolios in the event of a stock market crash.
Lockheed Martin (LMT)
Lockheed Martin (NYSE:LMT), a well-established defense and aerospace firm, extends its reach significantly within the space sector. It is a major provider of satellites and other space-related technologies.
Notably, Lockheed has been selected by DARPA and NASA to develop a nuclear-powered spacecraft for future missions to Mars. It also continues to enhance its satellite capabilities. The company is innovating in areas like missile defense and space exploration. They are also furthering their commitment by launching new generations of more advanced satellites.
LMT also benefits from the headwinds of rising geopolitical instabilities around the world. The company is famous for the F-16 line of fighter jets, and supplies arms to many NATO and neutral nations.
The firm pays a solid dividend yield of 2.72%. This which could be bolstered in the event of a sell-off across equities. In my view, this would establish it as one of those space stocks to buy. Also, consider that it has also historically outperformed the S&P 500 over the long-term as well.
Iridium Communications (IRDM)
Iridium Communications (NASDAQ:IRDM) operates a global network of low-Earth orbit (LEO) satellites providing vital communication services.
IRDM is a much less speculative pick compared to other companies in the space industry. LEOs are an established source of earnings for many companies.
The company reported a net income of $38 million for Q4 2023. This was a significant turnaround from a net loss in the same period of the previous year. For the full year, Iridium’s net income totaled $15.4 million, compared to $8.7 million in 2022. Additionally, Iridium’s subscriber base has seen substantial growth. Total billable subscribers increaed by 14% year-over-year to 2,279,000 by the end of 2023.
Looking ahead, Iridium has extended the estimated useful life of its satellites by five years. This could have positive implications for its long-term asset utilization and cost management €‹. This then makes it one of those space stocks to buy.
Astra Space (ASTR)
Astra Space (NASDAQ:ASTR) is primarily focused on launch services for small satellites, its innovative approach in this niche area of space exploration makes it a noteworthy contender in the space industry.
ASTR is a penny stock with a tiny market cap of just 14.75 million. It’s therefore very risky and speculative. Furthermore, Astra’s revenue for the first nine months of 2023 was notably low at $963,000, a stark contrast to the costs incurred. The revenue primarily came from their Space Products segment, as the Launch Services did not generate revenue during this period.
However, ASTR is actively realigning its resources, focusing more on the Astra Spacecraft Engines business, which has a better promise for revenue and earnings growth in the future.
I think that given the risks involved for ASTR, the lower one’s entry price is for the company, the better, offering potentially lower financial risks as well as prospects for capital appreciation. If ASTR’s shares depreciate in the face of a broad market sell off, as most speculative stocks do, then it could be worth opening a small position in the company.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.