An exciting opportunity is emerging in space exploration, and investors are taking notice. During Donald Trump's inaugural speech from the Capitol, he said, "We will pursue our manifest destiny into the stars, launching American astronauts to plant the Stars and Stripes on the planet Mars."
Many investors are interested in Elon Musk's SpaceX or Jeff Bezos' Blue Origin, but these companies are not currently trading on major exchanges. That said, several publicly traded space companies are working on various projects, ranging from lunar research to space-based satellite networks aimed at improving global communications.
If you have a high-risk tolerance and a long-term outlook, here are three exciting space stocks to buy and hold for the next decade and beyond.
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Rocket Lab USA
Rocket Lab (RKLB -5.20%) has established itself as a go-to partner for businesses launching small satellites into orbit. Its flagship rocket, the Electron, has helped the company position itself as the second-most frequently used orbital rocket in the U.S.
Electron's compact design is perfect for regular and budget-friendly missions catering to clients with small payloads. Since its test launch in 2017, Rocket Lab has completed 57 missions, including 15 in 2024.
In addition to its launch vehicle, Rocket Lab has a bustling space systems business, providing design and manufacturing services for spacecraft components. This segment alone contributed $220 million to revenue, making up 72% of its total gross profit through the first three quarters of 2024.
One thing holding Rocket Lab back from taking on larger payloads is the company's lack of a larger launch vehicle. While its smaller rocket can make more frequent flights, it earns less profit per launch -- around $5 million to $7 million per launch.
This year, the company will look to debut its Neutron rocket, which has a payload capacity 60 times greater than its Electron rocket. At $50 million and $55 million per launch, Neutron is set to unlock revenue and profit that is six times greater than Electron's, paving the way for substantial growth and expanding margins.
Intuitive Machines
Intuitive Machines (LUNR -8.06%) had an impressive 2024. In February of last year, the company launched its inaugural lunar mission, IM-1, using its Nova-C lunar lander, Odysseus. This achievement marked a significant milestone: the first lunar landing by an American-made spacecraft since 1972 and the first one accomplished by a commercial spacecraft.
Following the successful mission, NASA awarded Intuitive several contracts, including one in September with a maximum potential value of $4.82 billion over the next 10 years.
Next up for Intuitive Machines is its upcoming IM-2 mission, scheduled to launch in the first quarter of the year, with a target date around Feb. 27. This mission will utilize its Nova-C lunar lander to land on the Moon's South Pole. The mission will employ a drill and mass spectrometer to analyze the volatile content in subsurface materials. It could provide the first assessment of hydrogen levels in the permanently shadowed regions (PSR), which is an important indicator of water presence.
Investing in Intuitive Machines carries additional risks because it is still a young, growing company, and potential setbacks with its missions could send the stock price down. However, with its expanded contracts with NASA and growing backlog, Intuitive Machines is an appealing growth stock in the expanding space economy.
AST SpaceMobile
AST SpaceMobile (ASTS -6.02%) aims to transform global communication by delivering reliable cellular broadband through its low-Earth-orbit satellites. The company looks to work with telecommunications companies to bridge connectivity gaps in regions that traditional infrastructure can't reach.
Last year, the company built on its partnerships with both AT&T and Verizon Communications to expand its space-based network to bridge those connectivity gaps. Also during 2024, the company successfully launched five new satellites, named BlueBird, into low Earth orbit. It plans to launch another 60 satellites over the next two years and expand that to 155 satellites by 2030.
While AST SpaceMobile is making strides, investors must keep in mind that it will need to continue tapping markets to meet its financing needs as it expands its satellite network over the next several years.
That said, the satellite manufacturer has a significant upside as the industry expands. Analysts at Deutsche Bank forecast revenue could reach $50 million by next year, grow to $1.4 billion by 2027, and soar to $5.1 billion by 2030. Furthermore, they anticipate the company will become cash-flow-positive by 2027.
