Space stocks have been a hot trade for the last year. But if you think it’s too late to get into the trade, think again. Many of these stocks have an opportunity to move much higher. And it has nothing to do with the upcoming SpaceX initial public offering (IPO).
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The catalyst is that, for the first time in 50+ years, we’re going back to the moon. On April 1, NASA’s Artemis II mission, the first crewed flight in 50 years, successfully launched, now cruising along a path that will take it to the dark side of the moon and back. In doing so, the astronauts will become the farthest-flying humans in history at 252,757 miles, or 4,102 miles beyond the Apollo 13 crew record.
Not only has its success reignited attention on the space economy, but it’s also reignited ambitions to once again put humans on the Moon and eventually build a sustained lunar presence. The Artemis program is more than a historic achievement — it’s a potential catalyst for long‑term growth across aerospace and space stocks.
From lunar landers to rocket launches and space communications, here are three space stocks well-positioned to capture the growth of the space economy, which could be worth $1.8 trillion by 2035, according to the World Economic Forum.
NASA Contracts and Lunar Missions Fuel Explosive Growth Potential
Intuitive Machines (NASDAQ: LUNR), one of the most-watched moon stocks, has exploded since Artemis II took off. That’s because it was just awarded a NASA contract with a growing backlog.
In fact, NASA awarded the company a $180.40 million Commercial Lunar Payload Services task order for an IM-5 mission, which will deliver seven payloads to a ridge near the Lunar South Pole. In addition, Intuitive Machines said the latest mission will use its lunar landing system, space data network, and autonomous surface operations capabilities, which gives investors another reason to get bullish on the stock.
It’s also seen as a long-term beneficiary of commercial lunar activity. Its subsidiary Lanteris Space Systems was selected by L3Harris Technologies to support the development and production of spacecraft platforms for the Space Development Agency Tranche 3 Tracking Layer of the Proliferated Warfighter Space Architecture.
Space-Based Cellular Network Could Disrupt Global Connectivity
AST SpaceMobile (NASDAQ: ASTS) could also rocket higher this year. For one, the company is developing a space-based mobile broadband network, using a combination of satellites and ground-based relays that can connect your mobile phone to the World Wide Web without the need for cell phone towers.
Second, it’s preparing for its BlueBird-7 satellite launch, set for April 10 – a key milestone for expanding its space-based cellular broadband network. In addition, if the company can orbit communications satellites around the Earth, it may also be able to facilitate communications on the moon and, potentially, even Mars one day.
Also, in February, it was awarded a $30 million prime contract by the U.S. Space Development Agency for the HALO Europa program to provide direct-to-device tactical satellite communications. And it was just awarded a government contract for the Missile Defense Agency’s Scalable Homeland Innovative Enterprise Layered Defense (SHIELD) indefinite-delivery/indefinite-quantity (IDIQ) contract.
Diversified Exposure to the Fast-Growing Space Economy
If you want greater exposure to space-related stocks at a low price, there’s the Procure Space ETF (NASDAQ: UFO) that just rocketed from a November low of about $31 to $49.35.
With an expense ratio of 0.75%, the UFO ETF offers diversification in the commercial space economy — satellites, connectivity, data services, Earth observation — which many analysts see as a rapidly expanding sector. It also holds 52 stocks, including Planet Labs, EchoStar, AST Space Mobile, Rocket Lab, Intuitive Machines, and Boeing, to name a few.
Why the Space Economy’s Next Phase Could Lift These Space Stocks Higher
As humanity gets excited about the space economy and the moon again, related stocks could easily rocket higher. From lunar landers to orbiting satellites that could reshape global communications, companies like Intuitive Machines, AST Space Mobile, and diversified ETFs like the Procure Space ETF (UFO) are just a handful of must-own stocks.
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