with S&P500 Stock prices have fallen sharply in recent days, raising concerns in some quarters that a stock market crash is on the horizon. This could benefit this list of space stocks to buy as it could provide a cheaper entry point.
I decided to buy these three space stocks based on their long-term fundamentals. I believe these companies have the potential to bounce back faster after a decline compared to more speculative options in the market.
The only downside to these companies is that they are fairly priced, but falling stock prices may help reduce or eliminate the main argument against adding them to your portfolio. In some cases, the space industry may not be the only source of future profits or income, but the engine of growth for a company.
Here are three space stocks that investors should consider adding to their portfolios during a stock market crash.
Lockheed Martin (LMT)
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lockheed martin (New York Stock Exchange:LMT) is an established defense and aerospace company that has significantly expanded its reach in the space sector. The company is a leading provider of satellites and other space-related technologies.
Notably, Lockheed was selected by DARPA and NASA to develop nuclear-powered spacecraft for future Mars exploration. We also continue to enhance our satellite capabilities. The company is innovating in areas such as missile defense and space exploration. They are also furthering their efforts by launching a new generation of more advanced satellites.
LMT also benefits from the headwinds of increasing geopolitical instability around the world. The company is best known for its F-16 fighter jet series and supplies weapons to many NATO and neutral countries.
The company has a solid dividend yield of 2.72%. This could be further strengthened if stocks overall decline. In my view, this will establish the company as one of the best space stocks to buy. Also, historically, S&P500 Even in the long run.
Iridium Communications (IRDM)
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iridium communication (NASDAQ:IRDM) operates a global network in low earth orbit (leo) Satellites that provide important communications services.
IRDM is a company with far fewer speculative choices than other companies in the space industry. LEO is an established revenue stream for many companies.
The company reported fourth quarter 2023 net income of $38 million. This was a significant improvement from the net loss in the prior year period. For the full year, Iridium’s net income totaled $15.4 million, compared to 2022 net income of $8.7 million. Additionally, Iridium’s subscriber base has increased significantly. Total billable subscribers reached 2,279,000 by the end of 2023, an increase of 14% year-on-year.
Looking to the future, Iridium has extended the satellite’s estimated service life by five years. This can have a positive impact on long-term asset utilization and cost management. Therefore, it becomes one of the best space stocks to buy.
Astra Space (ASTR)
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astra space (NASDAQ:ASTR) is primarily focused on small satellite launch services, and its innovative approach in this niche area of ​​space exploration has made the company a notable competitor in the space industry.
ASTR is a penny stock with a market capitalization of just 14.75 million yen. Therefore, it is highly risky and speculative. Additionally, Astra’s revenue for the first nine months of 2023 was significantly lower at $963,000, in contrast to the costs it incurred. Revenues primarily came from the Space Products segment, as Launch Services did not generate revenue during this period.
However, ASTR is actively realigning its resources to focus on the Astra spacecraft engine business, which has better prospects for future revenue and profit growth.
Considering the risks associated with ASTR, I think the lower the entry price, the better for companies. This potentially provides lower financial risk and the prospect of capital appreciation. If ASTR stock declines in the face of a market-wide sell-off, as most speculative stocks do, it may be worth opening a small position in the company.
On the date of publication, Matthew Farley did not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the author; InvestorPlace.com Publishing Guidelines.
