Advances in technology have opened space to private companies, turning what was once a government-only arena into a fast-growing commercial industry. Today, investors can choose from defense giants, satellite operators, launch providers, and niche space-focused businesses.
And the opportunity is large. Morgan Stanley estimates the space economy could reach $1 trillion by 2040. But the risks are real. This is a capital-intensive industry with complex technology, a small customer base, and heavy reliance on government contracts.
For investors willing to accept volatility in exchange for long-term growth potential, here are some of the most compelling space stocks to invest in.
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Lockheed Martin (NYSE:LMT) | $131.8 billion | 2.36% | Aerospace and Defense |
| AST SpaceMobile (NASDAQ:ASTS) | $23.4 billion | 0.00% | Diversified Telecommunication Services |
| Rocket Lab (NASDAQ:RKLB) | $49.9 billion | 0.00% | Aerospace and Defense |
| L3Harris Technologies (NYSE:LHX) | $63.6 billion | 1.43% | Aerospace and Defense |
| Leidos (NYSE:LDOS) | $19.3 billion | 1.08% | Professional Services |
5 top space stocks for 2026
1. Lockheed Martin
NYSE: LMT
Key Data Points
2. AST SpaceMobile
NASDAQ: ASTS
Key Data Points
AST SpaceMobile is aiming to eliminate cellular dead spots once and for all. The company has developed technology that enables our everyday mobile phones to connect to its constellation of satellites, offering global coverage even in areas without cell towers.
The company went public in a 2021 deal to merge with a special purpose acquisition company (SPAC) company and has made progress in the years since, demonstrating the effectiveness of its technology and signing up cellular partners. However, significant risks remain: It will cost AST tens of millions of dollars to get its fleet of satellites airborne, and it will give most mobile users more of an added bonus feature than a must-have.
AST's future is far from certain. But for the risk-tolerant investor, this stock could be a fascinating piece of a well-diversified portfolio.
3. Rocket Lab
NASDAQ: RKLB
Key Data Points
Rocket Lab is another relative newcomer to public markets that began trading via a SPAC. The company is focused on launching small satellites into space, but it is investing in expanding its offerings to include larger launches and adding related services, such as satellite manufacturing and components. The goal is to be a one-stop shop for customers looking to design a satellite, launch it into space, and monitor and maintain it in orbit.
This is a competitive market, but Rocket Lab is a low-cost provider and is currently conducting commercial launches, putting it ahead of some of its would-be competitors. Space is full of risk for young companies, but Rocket Lab looks like a potential winner.
4. L3Harris
NYSE: LHX
Key Data Points
NYSE: LDOS
Key Data Points
Leidos is the largest of the so-called "Beltway Bandits," defense companies that specialize in providing IT and consulting services rather than weapons to government customers. For Leidos, this means a strong and growing business serving NASA, the Pentagon, and other agencies interested in space.
Leidos bulked up its space capabilities with its 2020 purchase of Dynetics, an engineering and consulting firm dating back to the original U.S.-Soviet space race of the 1960s and a close partner of NASA.
Today, Leidos provides a range of space-based services, including managing space missions, designing and manufacturing rocket payloads, and providing the electronics and know-how to communicate with those payloads.
How to buy space stocks
- Open your brokerage account: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
- Search for the stock: Enter the ticker into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Benefits and risks of investing in space stocks
Benefits:
- There is the potential for exponential growth as this industry develops.
- The government considers space essential, as it provides a strong foundation and reliable revenue.
- Satellite communications are becoming mainstream.
- Technical barriers to entry are incredibly high.
Risks:
- These are capital-hungry businesses with extreme capital needs.
- A single point of failure in engineering or design could wipe out years of R&D and put companies into distress.
- Smaller companies must compete against SpaceX and other deep-pocketed rivals.
- There is a long path to profitability for many of these businesses.
- Geopolitical and regulatory hurdles could arise as space goes mainstream.
Should you invest in space stocks?
Space is exciting, but it's dangerous. That's also true about most of these stocks. There is amazing, world-changing potential in a lot of these businesses, but there's also a significant risk that one or more of them will fail to get the tech exactly right and never live up to their potential.
For investors looking for moonshots, space stocks might be a good choice. Just understand the risks that come with charting new horizons and keep space stocks to a small, speculative part of a broad portfolio.
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FAQ
Space stocks FAQ
About the Author
Lou Whiteman has positions in L3Harris Technologies, Leidos, Lockheed Martin, and Rocket Lab. The Motley Fool has positions in and recommends Boeing, L3Harris Technologies, Leidos, and Rocket Lab. The Motley Fool recommends Lockheed Martin. The Motley Fool has a disclosure policy.
