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.
Top space stocks to consider
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Lockheed Martin (NYSE:LMT) | $138.2 billion | 2.24% | Aerospace and Defense |
| AST SpaceMobile (NASDAQ:ASTS) | $33.7 billion | 0.00% | Diversified Telecommunication Services |
| Rocket Lab (NASDAQ:RKLB) | $47.3 billion | 0.00% | Aerospace and Defense |
| L3Harris Technologies (NYSE:LHX) | $67.4 billion | 1.33% | Aerospace and Defense |
| Leidos (NYSE:LDOS) | $24.0 billion | 0.87% | Professional Services |
1. Lockheed Martin
NYSE: LMT
Key Data Points
Lockheed Martin is best known as the maker of the F-35 Joint Strike Fighter, but the company also has an extensive space business focused on the manufacture of satellites and missiles, as well as a massive launch business via a joint venture with Boeing (BA -1.62%).
Lockheed historically has focused on business for the Pentagon and NASA, although it also has some commercial customers. Its space unit gives it exposure to some of the fastest-growing development areas in defense, including hypersonic missiles able to travel at more than five times the speed of sound.
Space accounts for more than 15% of Lockheed Martin's revenue.
2. AST SpaceMobile
NASDAQ: ASTS
Key Data Points
AST SpaceMobile is attempting to do away with cellular dead spots once and for all. The company has developed technology that allows our everyday mobile phones to connect with its constellation of satellites, offering global coverage even in areas where there are no cell towers.
The company went public in a 2021 deal to merge with a special purpose acquisition company (SPAC) and has made progress in the years since, demonstrating the effectiveness of its technology and signing up cellular partners. However, significant risks still remain: It will cost AST tens of millions of dollars to get its fleet of satellites airborne and 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 offering to include larger launches, and it is also 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, get it into space, and then monitor and maintain it while it is in orbit.
This is a competitive market, but Rocket Lab is a low-cost provider and is currently conducting commercial launches, putting it out in front 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
L3Harris (LHX -1.11%) dramatically expanded its space-based business via its 2023 acquisition of Aerojet Rocketdyne. Aerojet was one of only two U.S.-based companies that manufactured the engines needed to propel big objects into space. The other, Orbital ATK, was acquired by Northrop Grumman (NOC +0.86%) in 2018. Northrop's defense rivals are eager to have another stable option for propulsion.
L3Harris had a lot of space credentials even before the acquisition. The legacy Harris business historically has been one of the top suppliers of communications equipment to the Pentagon, from radios to satellites. Today, the company offers not only access to space but also a range of electronics, missile warning, and space intelligence products.
This company is the product of a series of mergers and is only now beginning to integrate all of what it now owns. As it emerges, the finished product may be an attractive option for investors seeking the stability of a defense company but with a focus on defense tech and electronics.
5. Leidos Holdings
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 that dates back to the original U.S.-Soviet space race of the 1960s and is 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.
The biggest name in space-tech you can't invest in
One of the biggest names in space is not on this investment list. Elon Musk's SpaceX is perhaps the most successful of the next-generation space start-ups and has numerous government contracts. SpaceX -- and not one of the established defense contractors -- is currently ferrying astronauts from U.S. soil to the International Space Station, and the company has a large satellite business, as well.
SpaceX itself remains private, but Musk has said the company is weighing a potential IPO as soon as June 2026. Until that happens, there is still no direct way for retail investors to invest in SpaceX.
How to invest in space stocks
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name 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.
Tips for investing in space stocks
There is considerable potential upside to space, but also significant risk. The best advice is to diversify your investments and not commit too much capital to any one moonshot. Diversification could mean buying a lot of space stocks, or it could mean choosing a space-focused ETF or mutual fund.
Also, understand that there is a huge difference between proving something is possible and proving it is commercially viable. A lot of young space companies are pushing cutting-edge technologies. Markets tend to get excited when a young company demonstrates the viability of its idea. But unless that idea can scale into a profitable business, it is unlikely to be a winning long-term investment.
Are space stocks right for you?
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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