The top space stocks to by in this article have robust outlooks for the rest of the year, and I think we could see them become very strong performers amid the broader indices such as the S&P 500 and the Nasdaq continuing to surge higher.
Although the risks of investing in these companies is significant due to it being a speculative industry, there’ also a great potential for these brands to become potential multibaggers. However, this is only true if numerous factors play out as anticipated.
So here are the top space stocks to buy for this month.
Virgin Galactic (SPCE)
Virgin Galactic (NYSE:SPCE) is one of those polarizing space stocks, but I’m running with the bulls on this one. Its polarity comes from this short-term financial results that have been disappointing, coupled with robust forecasts for the future.
For FY2023, SPCE achieved $7 million in revenue, up from $2 million in 2022, attributing this growth to its commercial spaceflights. However, it recorded substantial net loss of $502 million for the year, slightly worsening from a $500 million net loss in 2022. Total GAAP operating expenses were $538 million for the year, compared to $502 million in the previous year €‹.
SPCE remains in penny stock territory, trading hands at just $1.6 per share. Its valuation therefore is very cheap, and I think that’s one of the main drawcards that is keeping investors interested.
Furthermore, Wall Street analysts who cover SPCE have predicted an enormous increase in its revenues in a few financial years. Its revenue is expected to leap from 5.25 million in FY2025 to 168.30 million in FY2026, making a 3,103.88% increase.
This means that despite its short-term troubles, for patient investors it could become a potential multibagger, and is one of those top space stocks to buy.
EchoStar Corporation (SATS)
EchoStar Corporation (NASDAQ:SATS) provides satellite communication solutions. Companies that invest in satellite constellations and related services are on a strong path for growth, and it’s one of the reasons I like SATS.
SATS is in the process of reorganizing itself amid a recent merger with DISH Network. The merger is expected to yield significant cost and revenue synergies, with projections estimating around $150 million by 2025.
I feel that SATS will be somewhat of a slow burner. It’s in the process of integrating DISH’s assets, potentially worth $30 billion, and this will take some time for the company to fully unlock the equity contained within.
Nonetheless, analysts have set the 12-month price forecast for EchoStar with an average target of $27.5, representing an increase of 110.73% from its current price, with a consensus rating of “Buy“.
SATS has great potential for increasing shareholder equity thanks to its now combined assets and synergies, which makes it one of those top space stocks to buy.
Rocket Lab (RKLB)
Rocket Lab (NASDAQ:RKLB) is a space company known for its launch services and space systems.
RKLB has a mixed bag of results for 2023. It achieved a record number of 25 launches across its Electron and HASTE vehicles and has been steadily making progress for its Neutron rocket, which could unlock significant revenue and profitability for the firm.
Meanwhile, for the first quarter of 2024, RKLB projects revenue between $92 million and $98 million. Keep in mind this is with Space Systems revenue expected between $60 million and $65 million. Also, it is with Launch Services revenue forecasted between $32 million and $33 million.
Trading at just $4.30 per share at the time of writing, RKLB could be one of those top space stocks to buy. It also has plenty of upside potential for growth investors as well.
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.