5 Space Stocks to Buy in 2025

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 (NYSE:BA).

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.

Lockheed Martin had hoped to expand its space presence via an acquisition of Aerojet Rocketdyne, but the company walked away after hearing regulators object. Even without Aerojet, space accounts for more than 15% of company revenue.

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.

L3Harris (NYSE:LHX) 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 (NYSE:NOC) 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 recent merger, and they have made deals with businesses such as Aerojet while still integrating what they own. 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.

Leidos Holdings

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. 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.

Technological advances have democratized outer space, transforming the cosmos from a domain once dominated by government entities and creating new opportunities for the private sector. The private sector has responded enthusiastically, giving investors a lot of choices when thinking about investing in space.

Lockheed Martin

AST SpaceMobile

Rocket Lab USA

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.

L3Harris

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