雅虎香港財經 The 3 Best Space Industry Stocks to Buy for Galactic Returns
Humanity’s passion for exploring space has never been more palpable. An array of companies operating in space, both public and private, have been making waves in a burgeoning industry that propels people, cargo, and innovations skyward. From launching satellites to capturing Earth’s beauty, the sector redefines our cosmic ambitions pointing to an incredible long-term future for the best space industry stocks for 2023.
As we venture beyond the Earth’s atmosphere, investors can wager on a varied mix of established defense titans to ambitious startups. Astonishingly, 90 countries are already taking a leap into the galactic arena, according to the World Economic Forum, with more to come over the next several years. Furthermore, Morgan Stanley envisions a mind-boggling $1 trillion valuation for the global space sphere by 2040. Let’s look at three of the space industry stocks to buy now for investors, enabling them to secure those galactic returns.
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Best Space Industry Stocks for 2023: Virgin Galactic (SPCE)
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Virgin Galactic (NYSE:SPCE) was once a high-flying stock, soaring from its de-SPAC price of $11.75 in October 2019 to a high of $62.8 in early 2021. However, after multiple delays, related setbacks, and risk-off market sentiment, its stock is down more than 90% from its highs.
However, the once red-hot space tourism play has been ticking upward this year following an announcement that upgrades to its VMS Eve mothership were complete. Moreover, it anticipates commercial testing to begin in the second quarter of this year, which signals a potential turn-around in price.
Nevertheless, it remains a speculative opportunity at best, with the massive long-term opportunity in space tourism. According to Vantage Market Research, the space tourism sector could grow at a whopping CAGR of 36.2% between 2021 to 2030. Additionally, the firm still has over $900 million in the bank to continue its long-term cosmic adventures.
ARK Space Exploration & Innovation (ARKX)
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For investors looking to board a celestial vehicle to board the cosmic realm of the space industry, the ARK Space Exploration & Innovation ETF (BATS:ARKX) might be their best bet. With a single investment, this exchange-traded fund (ETF) allows investors to wager in a swath of securities in the dynamic world of space and other transformative technologies.
Moreover, investors will find themselves in the capable hands of ARK Investment Management, led by maverick stock-picker Cathie Woods. Her visionary approach has effectively steered investors to massive gains over the years, and the ARKX ETF is no different. It allows investors to bet on high-potential disruptive stocks in space, aerodynamics, artificial intelligence, and beyond. However, investing in it comes with a fair degree of risk and an expense ratio that is more than 40% higher than the sector. Nevertheless, if you trust the ARK investing philosophy, it’s worth betting on.
Planet Labs (PL)
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Shifting gears to a company that actually makes money, San Francisco’s Planet Labs (NYSE:PL) has been a revelation of late. The company is revolutionizing industries from agriculture to defense through its high-resolution images of Earth with its satellite technology. Founded in 2010, the company went public via a SPAC merger in 2021, and despite more than a 50% dip in share price, it’s been charting a course toward brighter horizons.
Most of its decline is attributable to its unprofitable status, but Planet Labs is still shaking things up with some impressive results. Its fourth-quarter earnings report revealed a dazzling 43% year-over-year revenue increase to $53 million. Moreover, its non-GAAP gross margin leaped from 42% to 58%. Additionally, it had 882 customers, a 15% uptick from the prior-year quarter, and a 94% recurring annual contract value. A solid $408.8 million cash position and an
As we advance, it forecasts anticipated revenue of $248M to $268M (+35% YOY) for 2023, reinforcing its promising trajectory. Therefore, PL remains an among the best space industry stocks with strong demand and supply.
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.
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