What’s the best space sector stock right now for investors?
We asked Seeking Alpha analysts Julia Ostian and Grassroots Trading for their picks.
Julia Ostian: Space stocks remain a highly speculative part of the market, and after a strong rally this year, many names leave limited room for new investors to enter at attractive prices. Ultra-speculative plays like AST SpaceMobile (ASTS) come with valuations that are completely disconnected from financials, extremely high cash burn, and no meaningful revenues yet, which makes them too risky for my taste.
Among the pure-play space names, Rocket Lab (RKLB) stands out as a more balanced speculative option, especially on pullbacks, even though the stock is not cheap.
Firefly (FLY) remains one of the most interesting IPO-era space plays, and after its recent pullback and the acquisition of SciTec, it is starting to look more compelling. I have covered this stock twice since its IPO, assigning it a Hold rating due to sentiment-driven valuation, but the stock has cooled off since then, falling from around $60 to roughly $20 per share.
For more conservative exposure, I prefer established players like Amazon (AMZN) through Project Kuiper, which should become a major satellite operator, and Lockheed Martin (LMT), which offers stability and dividends while investors wait, even though the stock’s performance has been lagging the broader market.
Grassroots Trading: Right now, I think Rocket Lab (RKLB) stands out as one of the strongest public space stocks, given its growing launch cadence, expanding space systems business, and progress toward the larger Neutron rocket, which broadens its revenue beyond launches alone.
For investors willing to take on more risk in hopes of bigger returns, AST SpaceMobile (ASTS) and Intuitive Machines (LUNR) stand out to me as interesting theme-based investments connected to satellite broadband and NASA’s lunar programs, though both carry significant execution risk.
If you want exposure to the space industry without investing in just one company, ETFs like Procure Space (UFO) or ARK Space & Defense Innovation (ARKX) provide a more diversified way to take a position in the space economy.