Motley Fool names seven 'unglamorous' stocks that could benefit from space boom

Motley Fool analyst George Budwell has put together a list of seven space stocks he would buy «without hesitation.» Four of them are in the small-cap segment, while three are big companies. «While everyone fixates on SpaceX's latest launch or dreams of Mars colonies,» Budwell argues, «the real money is being made in less glamorous corners of the space economy.»

AST SpaceMobile, a satellite manufacturer with a market capitalization of $12 billion, is solving a problem that affects 5 billion people: cellular dead zones, Budwell points out. Its technology requires no special hardware or apps; the phone connects directly to satellites. In the first quarter, the company reported revenue of $718,000, but guides for $50-75 million in the second half of this year. At this point, the company is burning cash, but Budwell argues «When you're building the infrastructure to connect half the planet, that's the cost of admission.»

Rocket Lab is a $15 billion-market-cap company that builds, launches, and operates rockets and spacecraft. It is not trying to compete with Elon Musk's SpaceX on size; rather the bet is on launch frequency and reliability, notes Budwell. The stock has risen nearly 580% in the last 12 months. But with the company targeting a potential $5.6 billion National Security Space Launch contract, the growth runway is said to «extend far beyond the stratosphere.» 

Intuitive Machines, with a market capitalization of $1 billion, made history last year as as the first U.S. company to land on the moon in over 50 years. It was selected for NASA's $4.8 billion Near Space Network, a $4.8 billion program to create communications and navigation for missions about as far from Earth as the Moon. After successfully launching its IM-2 mission to the moon in February and projecting full-year revenue of $250-300 million, the company is said to offer a rare combination: a space stock that is generating cash while building critical infrastructure for lunar exploration. Budwell adds that analysts expect the company to become profitable by 2027, so patient investors could be «handsomely rewarded.»

Satellite maker BlackSky, with a market capitalization of $547 million, is tapping into the fast-growing Earth observation market. Its constellation of satellites is capable of producing images detailed enough to identify individual vehicles and people. Meanwhile, its satellites can revisit locations hourly and deliver analytics within 12 hours of launch, Budwell points out. The company has long-term contracts that provide recurring revenue streams that «most space companies can only dream about.»

A pioneer in microgravity manufacturing, $2 billion-market-cap Redwire last year announced bioprinted human tissue on the International Space Station. It is working with pharmaceutical giants like Eli Lilly and Aspera Biomedicines to develop drugs and conduct clinical trials of cancer therapies in space. Investors, Budwell says, are «positioning for a future where manufacturing in space becomes as routine as manufacturing on Earth.»

Defense giant Lockheed Martin, valued at $107 billion by the market, is only partially exposed to space: Its space division is developing next-generation satellites and missile defense systems critical to national security, Budwell says. Its TacSat satellite, predicted to launch in 2025, will showcase 5G military communications and advanced infrared sensing capabilities. Lockheed offers a relatively safe way to participate in the space boom while benefiting from increased government spending on space-based defense systems, Budwell reckons.

Voyager Technologies, which went public only at the beginning of June and has a market capitalization of $2.53 billion, is developing developing Starlab, a commercial space station to replace the ISS, with $217.5 million in NASA funding and partnerships with Palantir, Airbus, and Mitsubishi. Through Starlab, the stock is said to offer «pure-play exposure to the space station economy.» It could potentially be worth tens of billions of dollars as companies look for microgravity facilities to conduct research, Budwell concludes.

The AI translation of this story was reviewed by a human editor.