In today's video, I look at the top three holdings of ARKX Space Exploration ETF (NYSEMKT: ARKX) and a few reasons why you should add them to your watchlist. For those not familiar with ARKX ETF, it's an actively managed ETF that invests in companies that are either in the front end of orbital/suborbital products or companies that will benefit from the increased activity of space missions. ARKX is expected to start trading on Tuesday, March 30, 2021.
The number one holding is Trimble Inc (TRMB 3.17%), with a Market Cap of $18.9B.
- Trimble is one of the leading providers of advanced location-based solutions for construction, agricultural, and civil engineering markets. Trimble would be one of the companies that would benefit from the increased amount of data collected from GPS Satellites.
- It has strong fundamentals with positive earnings, positive CFO, and assets greater than its liabilities.
The number two holding is 3D Printing ETF (PRNT 0.93%)
- PRNT is an ETF following an index designed to track companies' price movements in the 3D printing industry. The 3D printing world is still small, so instead of investing in numerous 3D printing companies, they decided to invest in the whole market.
The number three holding is Kratos Defense & Security Solutions (KTOS -1.37%), with a market cap of $3.4B.
- Kratos is a defense company working with the USA and Allies for national security. Kratos supports around 80% of space missions and is one of the leading providers of affordable, high-performance, tactical jet-powered drone UASs in the industry. We can see why ARKX has it as one of their top 3 holdings.
- It has strong fundamentals with positive earnings, a great CFO, strong forward guidance by analysts, and cash greater than its debt.
Click the video below for my full thoughts.
*Stock Prices used were the closing prices of March 29, 2021. The video was published on March 29, 2021.