Summary: The space stock market is expanding almost as quickly as the universe itself, as more and more companies venture into the final frontier. Consequently, the market offers a lot of promising opportunities for your investment portfolio. In this guide, we are taking a look at the top 5 space stocks buy in 2024 through a stock trading platform such as eToro.
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What are space Stocks?
Space stocks
When investing in space stocks, it’s essential to evaluate the market cap, stock price, and other financial metrics of each company that catches your eye. Also, keep in mind the inherent risks and volatility of the space industry. Many of its sectors, such as space tourism, are still developing and subject to regulatory changes and technological advancement.
Top 5 space stocks to buy in 2024
If you are interested in space stocks, we have compiled a list of the top 5 space stocks to buy in 2024. The companies on the list operate in a diverse range of sectors within the space industry, so they present different diversification opportunities
The top 5 space stocks to buy in 2024 are:
- Virgin Galactic (NYSE: SPCE);
- Lockheed Martin (NYSE: LMT);
- Astra (NASDAQ: ASTR);
- Rocket Lab USA (NASDAQ: RKLB);
- Planet Labs (NYSE: PL).
Note
1. Virgin Galactic SPCE
Virgin Galactic (NYSE: SPCE) is one of the pioneers of the emerging space tourism industry. The company plans to offer commercial space flights for tourists, giving those that can afford it a once-in-a-lifetime experience in outer space. If space tourism really takes off — and it most likely will, given that it is expected to grow by a CAGR of 38.6% by 2033 — investing in Virgin Galactic stock could be a solid long-term option for portfolio diversification.
Virgin Galactic stock price today
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2. Lockheed Martin LMT
Lockheed Martin (NYSE: LMT) is a long-standing company in the industry involved in various space projects. However, it is best known for NASA’s Artemis Program and Orion spacecraft. The company also colalborates with Northrop Grumman and Aerojet Rocketdyne, so it has a diverse revenue source.
Lockheed Martin stock price today
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3. Astra ASTR
Astra (NASDAQ: ASTR) is a relative newcomer in the space industry, but it has become known for its focus on providing launch services for smaller satellites. Their rocket designs and cost-effective solutions also enable more companies to realize their dreams of exploring the final frontire, which could result in substantial growth for the company.
Astra stock price today
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4. Rocket Lab USA RKLB
Rocket Lab USA (NASDAQ: RKLB) is another company that provides launch services for satellites. It has a solid track record of a number of successful launches and is constantly improving their technology to stay competitive in the market. In addition to launches, Rocket Lab’s operates in spacecraft design and on-orbit management sectors, so it has a rather diverse portfolio.
Rocket Lab USA stock price today
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5. Planet Labs PL
Planet Labs (NYSE: PL) is a company that specializes in satellite communication and satellite imagery services. Their Innovative technology caters to clients in various industries like agriculture, as well as government entities and national security. As the demand for satellite-based services grows, Planet Labs is well poised to become one of the major players in the industry.
Planet Labs stock price
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All stocks on the list are available for purchase at eToro, a platform featuring:
- Commission-free stock trading;
- 2,000+ stocks from 17 exchanges;
- Fractional shares;
- No account minimums.
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Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
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0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
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Copy top-performing traders in real time, automatically.
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eToro USA is registered with FINRA for securities trading.
How to buy space stocks safely
When investing in space stocks, it is essential to take several factors into account if you want to minimize risks. For example, it helps to:
- Remember that the space industry can be volatile: Many companies in the space industry are in the early stages of their development, and a good portion of the market — for example, space tourism — represents speculative stocks. Therefore, you should be ready for some fluctuations in stock prices. To minimize risks, ensure you diversify your portfolio across various sectors;
- Keep in mind the role of the private sector in the space industry: As the industry continues to grow, more private companies are sure to enter the market, just like SpaceX did. Each of them will potentially offer a different range of products and services catering to different kinds of clients. In short, the increasing involvement of the private sector will create new opportunities for potential investors thanks to their fresh revenue streams;
- Do your own research on the company: Examine its business model, management team, revenue growth and sources, etc. Also, asses their position within the space industry and their future growth prospects outside of it. Some companies might focus on satellite production, while others may be aiming for lunar landings or space tourism. Those are two quite different niches, so they demand a different approach;
- Pay close attention to safety regulations: Space exploration and tourism are still extremely risky, so investing in companies that do not take security seriously is not a profitable strategy.
Pros and cons of investing in space stocks
Pros
- Promising growth potential: The space sector is constantly expanding, with new investment opportunities presenting themselves regularly;
- Innovation and research: Investing in space enterprises supports research and development in other sectors, for example, engineering;
- Diverse global market: Space companies are massive and frequently operate on a global scale, and they can be quite diverse, ranging from narrowly-focused new companies to giants with goals involving space colonization.
Cons
- High risk: Space exploration is risky, and there is a lot that can go wrong, for example, before, during, and after launching a spacecraft. Even the slightest issue can result huge losses;
- The industry can be volatile: Many sectors in the space industry are rather new and thus volatile, for example, space tourism;
- High competition: The space industry has become competitive, and the space race is not over, with both private and government entities battling for dominance in outer space.
FAQs about the top 5 space stocks to buy in 2024
What are the top space stocks to invest in?
Some of the best space stocks to invest in include companies like Virgin Galactic (NYSE: SPCE), Lockheed Martin (NYSE: LMT), Astra (NASDAQ: ASTR), Rocket Lab USA (NASDAQ: RKLB), and Planet Labs (NYSE: PL).
Which satellite companies should you invest in?
High-growth satellite companies you should consider investing in include Astra (NASDAQ: ASTR), Rocket Lab USA (NASDAQ: RKLB), and Planet Labs (NYSE: PL).
How can I invest in space companies?
To invest in space companies, you can open a trading account on an online stock trading platform, such as eToro.
Can I buy SpaceX stock?
SpaceX is a privately-held company, so its stock is not available for purchase. However, you can invest in CEO Elon Musk’s other company, Tesla, and gain exposure to SpaceX that way.
Highly Rated Stock Trading & Investing Platform
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Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
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Copy top-performing traders in real time, automatically.
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eToro USA is registered with FINRA for securities trading.
