Investors may feel that the valuations of some stocks are out of this world. That’s particularly true of some space stocks. While privately held companies like SpaceX get a lot of headlines, many publicly traded names have gone to the moon in the last year.
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It’s easy to see why. Many analysts forecast the global space economy to be a $1 trillion market by 2030. Growth in this sector is being propelled by falling launch costs, explosive demand for satellite applications, and a healthy case of FOMO (fear of missing out) from retail investors.
To be fair, space stocks have been profitable investments. Many of these stocks have generated returns of over 100% in the last year. However, many of these companies are not profitable, and that means that valuations are stretched, to say the least.
That doesn’t mean they’re poor investments, but many of these stocks are still in the speculative stage. And as many investors know, investing in speculative stocks is like a game of musical chairs. You don’t know when the music will stop, but you don’t want to be the one without a chair when it does.
This article focuses on three stocks in this emerging sector. Two of them have been among the top-performing stocks in the entire market. The other has been a laggard but has shown recent signs of a turnaround.
Once again, this isn’t a sector to avoid. The growth is real and backed up by real contracts. But stock prices can get ahead of the story, and in this case, the fundamentals. That makes managing your positions critical.
Rocket Lab: The Current King of Space Stocks
Rocket Lab USA Inc. (NASDAQ: RKLB) is one of the top names among space stocks. RKLB stock is up 154% in the last 12 months. The company’s launch business is driving the business, as its Electron rockets are now on a regular schedule. Analysts are optimistic about the future demand for the company’s Neutron rockets, which can deliver larger payloads and will compete with the SpaceX Falcon 9.
However, the passionate band of Rocket Lab investors quickly points out that the company has a growing services business. This will position the company as an end-to-end solution in this growing industry.
Revenue is increasing, but Rocket Lab isn’t profitable, and it’s not expected to be profitable until 2027 at the earliest. That puts the focus on the company’s lofty price-to-sales (P/S) ratio of over 71x. Plus, from a technical standpoint, RKLB stock is trading at or slightly below oversold territory based on its relative strength indicator (RSI).
Investors should also note that short interest in RKLB stock is around 13%. That’s not aggressively high, but it suggests that much of the good news is priced in. Retail investors may find that the all-time high the stock made in August may serve as resistance without a new catalyst. Analysts are raising their price targets, but it’s likely that the stock will need to take a breather before it makes a run to new highs.
AST SpaceMobile: On Track to Connect the World
Communications services are a key driver of satellite launches. That’s the bull case for AST SpaceMobile Inc. (NASDAQ: ASTS). The company is developing the first and only end-to-end space-based cellular broadband network that connects directly to standard mobile phones. The stock is up 103% in the 30 days ending October 17 after the company signed a deal with Verizon Communications.
Starting in 2026, Verizon will be able to use AST SpaceMobile’s network of low-Earth orbit satellites to deliver space-based, direct-to-cellular services to its customers. It’s hard to overstate what this means for AST SpaceMobile’s topline growth in the coming years.
However, the recent surge in the stock has priced in all of that growth, and more. It’s also important to point out that, like Rocket Lab, the company isn’t going to be profitable in the near term.
ASTS stock is trading about 45% above its consensus price target. Short interest over 20% combined with a relative strength indicator near overbought levels suggests a pullback is in store.
The bull case for ASTS stock is in place, but the technicals are outrunning the fundamentals at the moment. Put this on a watchlist and identify a price target at which you’d be interested in owning the stock.
Intuitive Machines: A Grounded Entry Among Space Stocks
Intuitive Machines (NASDAQ: LUNR) made headlines for its probe that landed on the moon’s surface. LUNR stock popped on that news in early 2025, but the stock has come back to earth and was down 33?% year-to-date as of October 17.
The company is generating, albeit not necessarily growing, revenue and in a familiar theme is not profitable.. However, the company is broadening its portfolio to include satellite production which is likely to broaden the company’s revenue base over time.
Like many companies, Intuitive Machines success or failure will come down to performance. If it’s able to execute, the opportunity will be measured in decades. On a positive note, the company is not strapped for cash, but its growth may rely on factors that are outside its control.
That said, LUNR stock is currently trading about 26% below its consensus price and has a neutral relative strength index. Analysts have mixed opinions on the stock, which can make it tricky for retail investors to time their entry. Adding to the complexity, short interest is above 27%, which could also keep pressure on the stock in the short term.
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