Thursday, February 22, 2024
Stocks To Buy

3 Millionaire-Maker Space Stocks to Buy and Hold Forever

The burgeoning era of the space economy represents a massive long-term prospect poised to catapult investment portfolios into the stratosphere with millionaire-maker space stocks. Projections depict the next few years could be the ignition phase of a multi-trillion-dollar celestial marketplace.

When space tourism springs to mind, you’re invariably thinking about Virgin Galactic exhilarating shuttle rides. However, the space economy represents something far greater than space tourism. Envision a world augmented by satellites, offering advanced weather forecasting, high-resolution imagery, and exploiting the unique advantages of manufacturing in zero gravity.

Morgan Stanley analysts believe that the Space Economy will exceed $1 trillion by 2040. Therefore, it’s an ideal time to consider investing in the top space stocks. Identifying the right space stocks to buy could be the ticket to unparalleled financial growth.

Millionaire-Maker Space Stocks: Virgin Galactic (SPCE)

Virgin Galactic (NYSE:SPCE) has embarked on an audacious journey after finally announcing the launch of its commercial spaceflights. Although burdened by initial delays, this monumental step signifies a major leap for the business and the space tourism industry in general. Though it remains a remarkably speculative investment, it’s worth betting on, given its salivating long-term potential.

Its Delta Class aircraft is projected to generate upwards of $2.7 million-plus in revenues per flight. This buoyant revenue stream points to a massive revenue base for its business over the next decade, offering robust returns for investors. Though the firm is free cash flow negative, the commencement of revenue-generating activities could trigger an upside revaluation of Virgin Galactic’s shares.

Therefore, despite its troubles, assessing SPCE’s long-term growth trajectory is imperative. Hence, opening up a small position in the stock wouldn’t be imprudent.

Planet Labs (PL)

Planet Labs (NYSE:PL), a brainchild of former NASA scientists, has made waves in the burgeoning Earth imaging industry. The company has created a robust database that quickly tracks Earth’s dynamic changes. Its utility spans various industries, including shipping, forestry, agriculture, oil, and gas, to name a few.

As the application of technologies such as artificial intelligence accelerates, the value of these satellite images is bound to increase. Moreover, it continues to grow at a healthy pace, rising over 30% per year, with operating losses diminishing.

Its recently released first quarters point to a positive trajectory. It generated revenues of $52.7 million, up 31.3% from the prior-year period. Additionally, it generated a stellar 93% recurring annual contract value recorded for the first quarter, with the customer count growing by 9% year-over-year, reaching 903 customers. Furthermore, non-GAAP gross margin expanded to 56%, up from 45% in the first quarter of fiscal year 2023, demonstrating enhanced operational efficiency. Also, it included a robust $376.2 million in cash, cash equivalents, and short-term investments, solidifying Planet Labs’ financial position.

Lockheed Martin (LMT)

Lockheed Martin (NYSE:LMT) is a top choice for those looking to tread a more conservative path in the space sector. Though a predominantly defense company, it has effectively expanded its footprint into the cosmos. Space has evolved into a nearly $12 billion-a-year venture for the company, accounting for 20% of its annual sales.

The space arm of Lockheed Martin is far from a one-trick pony. It produces satellites, space transportation systems, and strategic advanced strike units within the defense realm. Additionally, commercial space activities multiply, offering natural expansion opportunities for the satellite and transportation businesses.

The allure of LMT stock lies in its maturity and profitability. Its shares are trading at 1.8 times forward sales estimates, offering over a 2.5% dividend yield while presenting investors with a compelling blend of stability and return potential.

 

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

Source link

Share with your friends!

Products You May Like

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the latest stocks updates
straight to your inbox

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.

x  Powerful Protection for WordPress, from Shield Security
This Site Is Protected By
Shield Security