RDW - If You Can Only Buy One Space Stock in July It Better Be One of These 3 Names
2024-07-18 11:00:00 ET
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Space is the next frontier to conquer, and many space companies are already gearing up to lead humanity to this next phase of civilization. Analysts and industry experts are optimistic, with McKinsey & Company projecting that the space ecosystem will hit $1.79 trillion by 2035.
With so much room for growth, everyone is trying to take a piece of the pie, but only a few are good enough to actually invest in this month.
These three stocks are leading the race to space exploration. With the right combination of technical engineering, internet technology, and sustainable funding, if you can buy one space stock with better profitability prospects, it better be one of these three.
These stocks have solid fundamentals and have their money in all the right places for big growth in the coming months and years.
Let’s dig into why you should buy one of these space stocks in July and the potential for recouping your profit in the long run.
AST SpaceMobile (ASTS)
AST SpaceMobile (NASDAQ: ASTS ) has everything it takes to sustain itself in the long run and claim a larger percentage of the growing space industry. The company is developing some leading technology in the space industry and anticipates being the first and only provider of space-based cellular broadband.
AST announced it was partnering with AT&T to provide 4G and 5G internet directly to every mobile phone globally, a feat that will revolutionize access to internet and space technology when achieved.
The company’s books are good, with the company digging into lucrative funding from the recently announced $100 million venture partnership with Verizon .
With ATS focusing mainly on the telecommunication segment of the space industry, analysts anticipate that the expansion and the surge in demand for space communication infrastructure could see the company’s top line.
Both the industry and company prospects are promising, and if there is one space stock you can put your faith in, then ATS is the one for you.
Redwire Corporation (RDW)
Redwire Corporation (NYSE: RDW ) is one space company to watch. The company mainly focuses on the space industry manufacturing segment.
Redwire provides highly reliable technology and production capabilities for avionics and sensors, power generations, and radio frequency systems. Its products include navigation satellites, next-gen solar arrays, imaging and control equipment, components for space habitats, 3D printing payloads, and design/engineering.
The company has a sustainable business model that provides mission-critical space equipment to the government and commercial space companies, a prospect that guarantees growth and expansion in the long run.
Currently, it has partnered with big players, including the Department of Defense, Lockheed Martin , NASA, and DARPA, providing space equipment and software technologies to these industry leaders.
Redwire currently trades at just above $8 , surpassing Wall Street’s 12-month price target of $7.25 . These figures represent a 170% YTD increase in the RDW stock prices, almost approaching the capped ceiling of $10.
With these figures and the projected company growth and acquisitions, the Jacksonville-based company will not slow down soon. Anyone looking to buy one space stock in July should definitely consider Redwire.
Leidos Holdings (LDOS)
Leidos Holdings (NYSE: LDOS ) primarily works with the DoD in various hypersonic programs. It recently collaborated with the DOD to review the Air Force Research Lab’s (AFRL) hypersonic projects, adding to its portfolio the sum of space project undertakings it has undertaken with the government.
The company has a history of investing significantly in expanding its services and capabilities into space. In 2020, Leidos spent $1.65 billion on Dynetics . Dynetics specializes in engineering and IT consulting and has a history of working closely with government agencies on the most challenging, technologically advanced missions.
Leidos has many space-related tech and product lines, including payloads, mission communication systems, cargo provisions, and related hardware. This has positioned it as one of the leading players in manufacturing space equipment and landing deals with government agencies such as NASA, FBI, and the DOD.
In its most recent quarter, Leidos smashed estimates for revenue and EPS. The company reported a 7% increase in revenue year over year and net bookings of $3.7 billion for Q1. With a backlog of $36.6 billion, the company has enough cash and ripe conditions for continued growth and expansion in the space industry. It is an excellent buy for investors looking to get into space.
On the date of publication, Joel Lim 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 .
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Joel Lim is a contributor at InvestorPlace.com and a finance content contractor who creates content for several companies like LTSE and Realtor, along with financial publications, including Business Insider, Yahoo Finance, Mises Institution and Foundation for Economic Education.
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