Space commercialization trends are taking off, and investing in satellite stocks offers investors a way to profit from what could be one of the next decade's biggest tech trends. Satellite stocks are equities that give investors an ownership position in publicly traded companies with significant exposure to the satellite technologies industry.
Between consumer-focused communications companies and operators in the defense industry, satellite technologies appear poised to be a strong growth industry. In addition to investing in industrial ETFs that offer broad exposure to the trend, investors may want to consider adding individual stocks to their portfolios.
Best satellite stocks to buy now
1. AST SpaceMobile
NASDAQ: ASTS
Key Data Points
AST SpaceMobile (ASTS +8.53%) is a provider of space-based telecommunications services. The company's satellite network allows it to provide cellular broadband services that can be used by mobile devices without the need for hardware add-ons or modifications.
A significant portion of the world still lacks reliable cellular service, and AST's technologies are helping to address this problem. The company has signed an agreement to provide satellite communication services that will be used by Vodafone and redistributed to customers. The contract runs through 2034 and will see SpaceMobile's services distributed across more than 20 countries in Europe and Africa. Vodafone and SpaceMobile are also collaborating on a satellite system to bring cellular broadband service to India.
The company is also making its cellular broadband services available in areas that already have coverage options. Through a deal with Ligado Networks, AST has secured a license for more than 80 years of access to premium lower mid-band wireless spectrum in the U.S. and Canada.
In addition to positioning for growth opportunities in the private sector, SpaceMobile has also been scoring wins with public sector customers, nabbing a $43 million contract with the U.S. Space Development Agency. For risk-tolerant investors seeking potentially lucrative satellite stocks, AST SpaceMobile is a top name right now.
2. BlackSky Technology
NYSE: BKSY
Key Data Points
BlackSky Technology (BKSY +3.32%) is a space-based tech company that uses satellites to provide imaging, monitoring, and analytics. The company primarily provides services to customers in the defense industry, and its satellite network and Spectra analytics software help provide key information and decision-making tools that allow for the management of key strategic locations, economic assets, and military events.
The company has been winning contracts with government customers and building its service backlog. The tech specialist's satellites already provide ultra-high-resolution imaging for active monitoring in conjunction with artificial intelligence (AI)-powered analytics, but it's not resting on its laurels.
BlackSky is rolling out its Gen-3 satellites and expects to have eight in orbit by early 2026. Preliminary responses have been positive, and the new satellite constellation looks poised to power the company's next growth phase.
BlackSky's subscription-based service provides customers with an all-in-one monitoring and analytics platform while setting the stage for the company to see strong recurring revenue streams. For investors seeking satellite stocks with exposure to the defense industry, BlackSky stands out as a top play.
3. Viasat
NASDAQ: VSAT
Key Data Points
Viasat (VSAT +3.24%) operates a global communications platform through its network of satellites and related support services. The company has typically generated most of its sales from government customers, but it also generates a substantial portion of its sales from private-sector clients for services that include in-flight internet connectivity. Viasat has also partnered with other leaders in satellite communications, including AST SpaceMobile.
Viasat is an established operator in the satellite telecommunications space with substantial technology and spectrum resources that allow it to provide service coverage across land, air, and sea. But its stock hasn't always been a great performer due to profitability and debt concerns. Conditions on those fronts could be improving, potentially paving the way for the company to be a strong performer for patient investors.
Viasat's government SATCOM business has been posting encouraging growth, and it could still be in the relatively early stages of a much bigger long-term expansion cycle. Demand for its defense and advanced technologies business is booming, and the company is seeing substantial profitability improvements thanks to high-margin contracts in the category.
While Viasat may not expand its business at the same breakneck pace as some other players in the satellite industry, its stock also trades at valuation multiples that are far less growth-dependent. For investors seeking potential value plays among satellite stocks, Viasat could have the makings of a strong portfolio addition.
4. Redwire
NYSE: RDW
Key Data Points
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Viasat (NASDAQ:VSAT) | $4.9 billion | 0.00% | Communications Equipment |
| AST SpaceMobile (NASDAQ:ASTS) | $20.3 billion | 0.00% | Diversified Telecommunication Services |
| BlackSky Technology (NYSE:BKSY) | $673.1 million | 0.00% | Professional Services |
| Redwire (NYSE:RDW) | $1.2 billion | 0.00% | Aerospace and Defense |
| Iridium Communications (NASDAQ:IRDM) | $1.9 billion | 3.21% | Diversified Telecommunication Services |
| Globalstar (NASDAQ:GSAT) | $8.7 billion | 0.00% | Diversified Telecommunication Services |
| EchoStar (NASDAQ:SATS) | $26.9 billion | 0.00% | Media |
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Investing in satellite 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.
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