Many space-oriented stocks went public by merging with special purpose acquisition companies (SPACs) over the past few years. However, most of those stocks crumbled as rising interest rates drove investors toward more conservative sectors.
Yet some of the more resilient SPAC-backed space stocks survived and thrived. Below, I'll take a closer look at three of those stocks -- AST SpaceMobile (ASTS 2.48%), Intuitive Machines (LUNR +2.75%), and Rocket Lab USA (RKLB +2.83%) -- and see why they could be great stocks to buy and hold for the long term.
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1. AST SpaceMobile
AST SpaceMobile produces low earth orbit (LEO) satellites for 2G, 4G, and 5G cellular connections. It helps telecom giants like AT&T, Verizon, and Vodafone beam their low-band 5G connections to areas that aren't covered by terrestrial towers.
Last September, AST launched its first five Block 1 BlueBird (BB1) commercial satellites. It plans to launch its first four Block 2 BlueBird (BB2) satellites, which will be 3.5x bigger and process 10x more data, by the middle of this year. It aims to expand its entire constellation to 60 satellites by 2026 and 243 satellites over the long term.
NASDAQ: ASTS
Key Data Points
AST still needs the Federal Communications Commission (FCC) to greenlight that massive expansion and is still heavily dependent on SpaceX and Blue Origin for its future launches. But assuming the company sticks to that roadmap, analysts expect its revenue to rise from $4 million in 2024 to $1.8 billion in 2027. They also expect adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to turn positive in 2026 and surge more than tenfold to $1.5 billion in 2027.
With an enterprise value of $5.9 billion, AST isn't expensive at 3x its estimated sales for 2027. It's still a speculative stock but could generate multibagger gains over the next decade if it continues to expand its satellite constellations.
2. Intuitive Machines
Intuitive Machines produces lunar landing and exploration vehicles for NASA. Its first IM-1 Nova-C lunar lander Odysseus successfully landed on the moon last February. It tipped over after its landing but was still able to deliver most of its payloads.
That marked the first successful U.S. moon landing since 1972 and prompted NASA to award the company with several new contracts. Unfortunately, its second IM-2 lunar lander Athena also tipped over when it landed on the moon in early March. But this time, its mission prematurely ended because Athena's solar panels were blocked and couldn't be recharged.
NASDAQ: LUNR
Key Data Points
That was a disappointing setback, but Intuitive still has plenty of irons in the fire. The company is still developing more lunar terrain vehicles for future NASA missions, was granted a lunar logistics-solutions contract this January, and holds an exclusive near-space network (NSN) contract with a maximum potential value of $4.82 billion.
If Intuitive Machines conducts more successful missions and secures new contracts, analysts expect its revenue to soar from $80 million in 2023 to $433 million in 2026. They also expect its adjusted EBITDA to turn positive by 2026. With an enterprise value of $442 million, the company still looks cheap at just over 1x its projected sales for 2026.
3. Rocket Lab USA
Rocket Lab USA develops reusable orbital rockets. Its Electron orbital rocket, which has been successfully launched 62 times, can carry small payloads of up to 300 kilograms into space. Its upcoming Neutron rocket, set to launch this year, can carry much heavier payloads of up to 13 metric tons. Several major clients, including NASA and a major satellite-network operator, have already signed up for its Neutron launches.
NASDAQ: RKLB
Key Data Points
Rocket Lab's other major clients include Kinéis, BlackSky Technology, the U.S. Space Force, and the Swedish National Space Agency. It also recently joined a team led by Kratos Defense & Security Solutions to test hypersonic flights. That contract has a maximum potential value of $1.45 billion, which could be split with its other team members over a five-year period.
Analysts expect Rocket Lab's revenue to rise from $436 million in 2024 to $1.25 billion in 2027 as it rolls out new rockets, secures new contracts, and ramps up its launches. They also expect its adjusted EBITDA to turn positive in 2026 and more than double to $184 million in 2027. With an enterprise value of $9 billion, the company might not seem cheap at 7x its 2027 sales. However, it could eventually grow into that valuation and deliver impressive gains for its investors over the next few decades.
