September 26, 2022, will go down in history as a NASA spacecraft crashed head-on into an asteroid the size of a soccer stadium as part of a test to defend Earth from a doomsday scenario where an asteroid would cause an extinction-level event.
The successful completion of this mission is a game changer for humanity as now humankind may have the ability to defend itself from a potential asteroid threat for the first time.
As the space domain will likely play an increasingly important role in the private and public sectors, Finbold analyzed companies operating in the space sector that could offer future value to their customers and shareholders.
Palantir Technologies (NYSE: PLTR)
Though initially a company that offered AI-based solutions to its clients, the firm recently explored ways to enter the space industry by acquiring a stake in BlackSky (NYSE: BKSY), a satellite imagery firm, and partnering with Satellogic (NASDAQ: SATL) to launch satellites into the orbit.
With these additional assets in the sky, Palantir can better serve its clients that rely on geospatial intelligence and deploy its AI models to analyze better what is happening on Earth.
Meanwhile, PLTR shares are down 59.36% year-to-date (YTD) as the markets took a turn. In the last month, PLTR has been trading from $7.13 to $8.10, staying below all moving averages. Technical analysis indicates a support zone from $7.38 to $7.39 and a resistance zone from $7.54 to $7.64.
TipRanks analysts rate the shares a ‘hold,’ with the average price in the next 12 months reaching $10.75, 42.76% higher than the current trading price of $7.53. Equally important, out of 10 Wall Street analysts covering the firm, 3 have a ‘buy’ rating, three a ‘hold,’ and four a ‘sell’ rating.
Science Applications International (NYSE: SAIC)
Science Applications is a leading tech, engineering, and security services provider for the US Department of Defense, which recently joined hands with Rogue Space Systems Corporation to develop solutions that provide rapidly deliverable in-orbit service assembly and manufacturing solutions. Additionally, asset inspection and space situational awareness will be targeted by this partnership.
In 2022, the demand for defense solutions, which mostly represents the bread and butter of SAIC, has been booming, with the stock up 3.86% YTD in an otherwise red market. Looking at the yearly performance, SAIC did better than 79% of all other stocks.
In the past month, the shares traded in a wide range from $87.93 to $97.81, with the technical analysis pointing to a support line at $79.10 and a resistance line at $91.72.
TipRanks analysts rate the shares a ‘moderate buy,’ with the average price in the next 12 months reaching $106.75, 20.24% higher than the current trading price of $88.78.
With breakthroughs NASA is making, the space industry will likely play an essential role in the future of humankind.
The above two mentioned companies, though not directly related to sending people into space, are providing assets and services that are space-bound and which can create value for the end customers and shareholders alike.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.