In this article, we present to you the 16 Best Space Stocks to Buy Now. If you’re in a hurry, click to skip ahead and jump to the 5 Best Space Stocks to Buy Now.
What lies beyond the Earth’s atmosphere is breathtakingly beautiful. A common definition of space is the Karman Line, the imaginary boundary 100 kilometers (62 miles) above the sea level. On October 4, 1957, the Union of Soviet Socialist Republics launched Sputnik, the first artificial satellite to orbit the Earth. On April 12, 1961 history was made when Russian cosmonaut, Yuri Gagarin became the first human in space. And since then, human’s interest in space skyrocketed.
According to BizVibe, The global space industry is currently worth $414.8 billion. In 2019, space companies raised a record of $5.8 billion in private investments. Totaling investments to $26 billion since 2009. Evidently, the amount of money invested in space companies each year is increasing significantly. In the USA alone, the space industry was valued at approximately $158 billion and could grow into a trillion-dollar industry by 2040.
The space industry has appeared to be a viable sector with serious growth potential in the coming years. However, the industry was not immune to the economic downturn caused by COVID-19. OneWeb, one of the leading satellite internet broadband service providers filed for bankruptcy in the midst of the pandemic, and space missions had either been suspended or delayed.
Despite the negative effects of the pandemic, the space industry was able to bounce back with the news that new constellations of satellites are due to enter low-Earth orbit in the coming years, news of satellite-based internet, space travel, and news on point-to-point transport around the earth.
Investors' interest in space exploration was further sparked when CEO Elon Musk, the world’s richest man and founder of Tesla (TSLA) and SpaceX successfully completed its first manned mission on May 30, 2020. This event made the company the first private company to launch astronauts for NASA. SpaceX is a privately held company.
The Biden Administration could further spark this interest as Biden is committed to support NASA’s work to return Americans to the moon and go beyond Mars. Andrew Chanin, co-founder, and CEO of ProcureAM said that space should be a priority for any administration.
We believe we will start with colonizing the moon first and after we perfect our technology and skills our next stop is going to be Mars. Here is what NASA said about this:
NASA’s human lunar exploration plans under the Artemis program call for sending the first woman and next man to the surface of the Moon by 2024 and establishing sustainable exploration by the end of the decade. The agency will use what we learn on the Moon to prepare for humanity's next giant leap – sending astronauts to Mars.
In order to identify the 16 best space stocks to buy now, we started with the top holdings from ROKT ETF and UFO ETF and we were able to narrow down our list to 16 stocks by using our hedge fund sentiment scores.
Our in-house analysis shows that we can use the sentiment information gathered from the hedge fund filings to classify in advance a select group of stocks that can beat the S&P 500 index by double digits annually on average. For instance, the portfolio of our monthly newsletter’s stock picks has beaten the market by over 88 percentage points since March 2017 (see details here). Some of the portfolio holdings of our monthly newsletter have been shared publicly too. In October, we shared this real estate stock and since then, it’s been up nearly 50 percent.
Based on our hedge fund sentiment data, we now present to you the 16 best space stocks to buy now based on the stock picks of 800+ hedge funds tracked by Insider Monkey:
No of HFs: 24
Total Value of HF Holdings: $76 Million
We start our list of best space stocks to buy now with SPCE. The company is known for developing commercial spacecraft that provide spaceflights to space tourists and launches space science missions. An insider purchased 350 shares at around $16 in May 2020. The stock nearly doubled since then. In a recent article we summarized why SPCE shares have been skyrocketing:
SPCE shares have been on a roller coaster ride since going public. Virgin Galactic stock was trading around $12 at the start of 2020. The stock touched a high of $42.49 in February following the news that nearly 8,000 people are interested in flying to space with the company, with 600 of them already purchased the tickets for the first flight.
No of HFs: 26
Total Value of HF Holdings: $462 Million
The American rocket and missile manufacturer, AJRD was formed in 2013. The company recently announced the completion of its assembly for the first AR1, a new rocket engine funded by the US Air Force. However, the company does not expect to test-fire until late 2022. The company highlighted that AR1 is ideally suited to meet the market needs.
"The AR1 engine is ideally suited to meet the market needs for a medium-class launch vehicle and a responsive launch capability.”
The top hedge fund holder of this stock is Ken Griffin’s Citadel Investment Group which had $213 million invested in the stock at the end of September.
No of HFs: 28
Total Value of HF Holdings: $346 Million
The satellite communication solutions provider SATS stocks is trading at $24 as of 5:39 PM on January 14, 2020. They were mentioned as one of the 10 Best Communication Equipment/5G Stocks to Buy Now. During the third quarter of 2020, the company announced a consolidated revenue of $474 million.
The top hedge fund holder of this stock is Jim Simons’ Renaissance Technologies, which had over $94 million invested in the stock at the end of September.
Steel City Capital mentioned a few of their comments about the stock in an article:
“EchoStar (Long): While the Partnership’s investment in EchoStar (SATS) is not new, it has not previously been discussed in any detail. The company’s business is very simple – it derives the vast majority of its revenue from the sale of satellite-based broadband internet services to consumers and enterprises across the Americas. As of 6/30/2020, SATS had 1.5 million subscribers, of which 1.2 million are located in the U.S. To a lesser extent, the company generates revenue from the sale of equipment to government and commercial customers.
No of HFs: 30
Total Value of HF Holdings: $907 Million
The stock was mentioned as one of the 5 Best Value Stocks to Buy Now According to Seth Klarman. They provide high-speed satellite broadband services and secure networking systems covering military and commercial markets. The company recently announced its partnership with SKY Brasil to expand the distribution of VSAT’s satellite internet service to more homes across Brazil. Sérgio Ribeiro, chief operations officer at SKY Brasil said,
"SKY is present in all cities within Brazil, offering services that adapt to the daily life and different consumer needs and profiles of Brazilians. We are specialists in offering excellent service and technical support with an unbeatable distribution network that delivers great value and a highly-differentiated service that can be seen in our business results on a national scale. We look forward to working with Viasat. This partnership is in line with SKY's objective, which is ensuring all Brazilians have access to information and entertainment,"
The top hedge fund holder of this stock is Seth Klarman’s Baupost Group, which had over $560 million invested in the stock at the end of September. An insider purchased 2,556,891 shares at around $39. The stock is down 5% since then.
No of HFs: 31
Total Value of HF Holdings: $343 illion
TDY was mentioned in Monday’s Top 10 Gainers in Focus. They are known for their aerospace and defense electronics. The company recently announced that they will be acquiring FLIR Systems in a cash and stock transaction valued at approximately $8.0 billion. Robert Mehrabian, Executive Chairman of Teledyne said,
“At the core of both our companies is proprietary sensor technologies. Our business models are also similar: we each provide sensors, cameras and sensor systems to our customers. However, our technologies and products are uniquely complementary with minimal overlap, having imaging sensors based on different semiconductor technologies for different wavelengths. For two decades, Teledyne has demonstrated its ability to compound earnings and cash flow consistently and predictably. Together with FLIR and an optimized capital structure, I am confident we shall continue delivering superior returns to our stockholders.”
The top hedge fund holder of this stock is Ken Fisher’s Fisher Asset Management, which had over $66 million invested in the stock at the end of September.
No of HFs: 31
Total Value of HF Holdings: $575 Million
The Consolidated Analysis Center Incorporated is a multinational company that offers information technology products and services. They specialize in system integration, information assurance, and alike. During the third quarter of 2020, the company reported a revenue of $1.5 billion.
The top hedge fund holder of this stock is Ken Griffin’s Citadel Investment Group, which had over $104 million invested in the stock at the end of September. An insider recently purchased 132 shares at around $189. The stock is up more than 28% since then.
No of HFs: 32
Total Value of HF Holdings: $515 Million
GRMN ranks 10th in our list of the best space stocks to buy now. The navigation and communications provider enabled by GPS technology was founded in 1989. The company was awarded the Supplier of the Year award from Embraer. This marked their 11th time to receive the award. Recently, the company announced the acquisition of all the asses of GEOS worldwide limited subsidiaries. Brad Trenkle, vice president of Garmin’s outdoor segment said the acquisition will enable them to provide more peace of mind to their users.
“With this acquisition, Garmin is now able to provide even more peace of mind to our inReach users. In an emergency, every moment matters. The addition of the IERCC to the Garmin family reinforces our commitment to helping our active lifestyle customers make it home safe from their adventures.”
The top hedge fund holder of this stock is Cliff Asness’ AQR Capital Management, which had over $158 million invested in the stock at the end of September. An insider recently purchased 400 shares at around $74. The stock up more than 62% since then.
No of HFs: 35
Total Value of HF Holdings: $1.030 Billion
The ninth-best space stock to buy now is TRMB. The stock was also mentioned in the Top 10 Robotics and Artificial Intelligence Stocks to Buy Now. The company is a California-based hardware, software and services technology company. That delivers products that aim to connect the physical and digital worlds. During the third quarter of 2020, the company reported a $792.8 Million revenue.
No of HFs: 37
Total Value of HF Holdings: $748 Million
SIRI was mentioned as one of the 10 Best Dividend Stocks Under $20. The company is knowns as one of the top broadcasting companies. SIRI operates from its satellites. Recently, the company announced that they have extended their agreement with the National Basketball Association in which users will gain access to live audio broadcasts for every NBA game.
No of HFs: 41
Total Value of HF Holdings: $970 Million
The seventh-best space stock to buy now is HON. The stock was also mentioned in the 10 Best Defense Stocks to Buy For 2021. In an article, Madison Investments mentioned that the stock is a relative yield example within Industrials:
“This quarter we are highlighting Honeywell (HON) as a relative yield example within Industrials. HON is a leading industrial conglomerate with an increasing focus on software and automation. We believe its global scale, history of innovation and strong culture focused on continuous operational efficiency create a sustainable competitive advantage. HON operates four segments including Aerospace, Building Technologies, Performance Materials and Technologies, and Safety and Productivity Solutions. These businesses serve diverse end markets including aerospace, U.S. defense contractors, e-commerce and oil and gas customers.
No of HFs: 42
Total Value of HF Holdings: $843 Million
NOC was mentioned in an article of the 10 Most Powerful Militaries in the World in 2020. During the third quarter of 2020, the global aerospace and defense technology company announced a sales increase of 7 percent to $9.1 billion from $8.5 billion in the third quarter of 2019.
The top hedge fund holder of this stock is Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, which had over $195 million invested in the stock at the end of September.
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Disclosure: None. 16 Best Space Stocks To Buy Now is originally published at Insider Monkey.
