The space industry is counting down to lift off with major investments pouring into the sector from multiple superpowers. Many space-related companies have profited off this new space race, giving new avenues for investors to add this sector to their portfolios.
Yahoo Finance Reporter Ines Ferré joins Wealth! for Yahoo Finance’s Space Week to break down the top space stocks for investors to keep an eye on.
For more expert insight and the latest market action, click here to watch this full episode of Wealth!
Also catch up on Yahoo Finance’s special coverage as part of this week’s Space Race: Investing in the Final Frontier series.
This post was written by Nicholas Jacobino
Video Transcript
In the last decade, the space industry has presented more opportunities for investors looking to capitalise on the future of exploration and technology, from companies pioneering satellite technology to those venturing into space tourism, the sector offers a range of investment avenues.
So which space related stocks should investors at least be keeping their eye on right now for potential investment here?
With the breakdown as part of Yahoo Finance’s space, race Week is our very own Innes Fay.
Hey, hey, Brad.
There’s many of these space related stocks, but let’s start with a few.
The first on the list is intuitive machines.
This is an infrastructure play.
The company made history back in February, you’ll recall its commercial lander.
Odysseus successfully landed on the moon.
The stock had skyrocketed leading up to the landing, but subsequently crashed when the lander permanently faded with no chance of waking up on the moon.
But when it comes to space, really no mission is un wasted.
The landing paved the way for some future missions, including one slated for late this year.
The stock is down more than 60% from its February peak, but up about 40% year to date.
number two on the list is Iridium, a commonly viewed company as a satellite phone company with a network built for mobile applications.
Whether that be on devices that people are using or the Internet of things, Iridium boasts that it’s the only network that has 100% Earth coverage where it’s delivered.
The company is profitable as it’s been around for more than 25 years.
Year to date of the stock is down about 37%.
Number three on the list is Planet Labs, the company found by three NASA scientists.
It designs, builds and operates the largest earth observation fleet of imaging satellites.
It has over 1000 customers, including entities involved with agriculture, forestry, education and government agencies.
In fact, in the defence and intelligence sector, revenue for the company grew 25% year over a year during its latest quarter.
Heightened security needs, increased sustainability and global climate risk are some of the trends that have been driving demand for their earth imaging.
The stock is up about 13% over the past two months, but down about 19% year to date, and number four is spire global.
This is a Data and Analytics company that uses satellites to collect information from space.
Think whether ocean winds, shipping information and anything else that can be observed from space.
The company has over 800 customers from about over 50 countries.
About half are from governments.
The other half come from commercial entities.
Year to date, the stock is up about 27% and number five on the list is Rocket Lab.
The Rocket launch service company launched its 50th electron rocket in June.
Electron has become the landing commercial small launch vehicle in Western countries, and the company remains on track for another year of record electron launches during Rocket Lab UH, it’s their May earnings management mentioned.
The company was awarded a second mission from the US Space Force for a space test programme that’s carrying out research and experiments for the Department of Defence.
The stock has rallied more than 40% since mid April.
It’s down less than 10% year to date, though Brad and as we’ve also seen a handful of space themed ETF S emerge throughout the years, which ETF S are likely to attract.
Some investors who are looking to capitalise on the sector.
Well, some of the ones that are most talked about is the procure space ETF UFO started in 2019, and that focuses on companies that are significantly engaged in the space industry.
So it includes companies from around the world, not just the US, and its fund invests in at least 80% of its Net assets and those companies that derive at least half of their revenue or profit from space related businesses.
So if you’re looking for more of a pure play space play, that’s the one as far as another ETF is concerned.
That’s Ark Invest Arc X that was started in March 2021 at the height of the market.
The fund aims at providing exposure to companies involved in space related businesses like reusable rockets, satellites, drones and other sub or aircrafts.
Large cap stocks are the most common holdings of that, ETF represented about 40 42% of the portfolio.
Medium cap represents about 31% and the rest are small cap and then you’ve got the spider, S and P Aerospace and Defence X they are.
It is an ETF focus on aerospace and defence, just like the name sounds it launched in 2011.
And funds largest holdings include Arrow Environment, for example, a defence company that manufactures drones and unmanned vehicles.
And that company’s earnings are expected to balloon more than 120% this year.
Brad.
All right, and a lot to keep tabs on, and some of the most active parts of the space industry that are being traded right now.
Appreciate it.
Thank you.
