As SpaceX continues to revitalize the space sector industry with its innovative reusable rocket technology, the cost of sending a payload into space has gone down over 30x from the days of the Space Shuttle in the early 1980s to Falcon Heavy.
Although SpaceX is not a publicly traded company, other aerospace industry actors benefit greatly from the application of new technologies and an accelerated space race. Moreover, those space companies that are listed on stock exchanges tend to rely on public-private partnerships just as much as SpaceX.
But in the absence of SpaceX stock, which space companies have proven their mettle?
Intuitive Machines
If there is any company that should be viewed as SpaceX proxy, it’s Intuitive Machines Inc (NASDAQ:LUNR). For its Moon missions that deploy lunar landers and microsatellites, the company relies on SpaceX’s Falcon 9 rocket for delivery.
Equally so, both companies have long-term contracts with NASA, making them beneficiaries of tax-funded public-private partnership. Since the in-depth coverage of Intuitive Machines in September, LUNR stock has gone up from $8.65 to present $11.92 per share. The company started the year as a cheap penny stock at $2.11, having yielded nearly 6x potential returns.
As noted back then, LUNR stock will likely fluctuate between sparse Moon missions, which will be a good opportunity to buy the dip. Under NASA’s Commercial Lunar Payload Services (CLPS) program, Intuitive Machines is scheduled to launch the latest Nova-C lander IM-2 in January 2025. Investors should view each successful mission as a new event hype.
As IM deploys the satellite constellation for future activities under the Lunar Data Network (LDN), including 4k surface mapping, the IM hype should elevate further. In the latest Q3 financial report delivered last Friday, IM’s revenue surged 359% to $58.47 million from a year-ago quarter, more than expected.
Although the net loss is substantial at $55.4 million, this is to be expected in the early stage of high capex demand. At present, bottom price consensus on LUNR stock is higher than the present level, at $12.5 vs $11.92 per share respectively. Based on 4 analyst inputs, the average LUNR price target twelve months ahead is $14.7, with a high ceiling of $16 per share.
Rocket Lab USA
As of November 2024, Rocket Lab USA, Inc. (NASDAQ:RKLB) made 54 launches utilizing its small payload Electron rockets. Of those, the company only suffered four failures, having had a 100% success rate throughout 2024 with 12 annual launches for satellite deployments.
This makes Rocket Lab the primary SpaceX alternative that is publicly traded. After proving its technical prowess with Electron, the company will start directly competing with SpaceX’s mid-sized Falcon 9 rockets with its Neutron launcher.
For RKLB shareholders, a successful Neutron deployment will be a major milestone that will likely be reflected in boosted stock valuation. Although delayed into mid-2025 for the first Neutron launch, Rocket Lab has already secured its first customer for two launches in 2026 and 2027, per latest earnings call on November 12th.
In the Q3 report, Rocket Lab grew its revenue to $104.8 million from 67.6 million in the year-ago quarter. The net loss of $51.9 million is similar to Intuitive Machines. Unlike IM’s larger loss spread, however, counting for nine months, the net loss for Rocket Lab between 2023 and 2024 is much tighter at $132 vs $137.8 million respectively.
Year-over-year, Rocket Lab increased its cash and cash equivalents by 80% to $292.47 million against $269.2 million in current debt (out of $744.2 million total). With investors starting to see Rocket Lab as a rising star, RKLB stock surged 82% year-to-date.
If Neutron launcher is successful, featuring its Archimedes engine for rapid reusability, it is likely that present RKLB price level will be viewed the same as Bitcoin investors view BTC price a year ago, a greatly missed opportunity.
Currently priced at $19.57, RKLB stock is projected to hit the average price target of $21.28 per share. The bottom outlook, per 11 analyst inputs, is $12 while the high ceiling twelve months ahead is $30 per RKLB share.
Northrop Grumman Corporation
For investors looking for safer aerospace exposure, Northrop Grumman Corporation (NYSE:NOC) has been consistently raising its dividend growth for nearly two decades. Now at 1.68% dividend yield, NG pays out $8.24 annually per NOC share. Over the last week, the military contractor is down 8%, as NOC price dropped to current $491.59 per share, presenting investors with an opportunity.
Year-to-date, this is the lowest NOC price since early August. But that is likely temporary. After all, the USG maintains the dollar itself with its military projection. And NG has been critical in providing it, from B-2 stealth bomber and A-10 Thunderbolt II to E-2C Hawkeye and F-35 Lightning II among many other contributions.
In fact, as warfare shifts to drones, NG is likely to lead it. In July, the company announced its Series Hybrid Electric Propulsion AiRcraft Demonstration (SHEPARD) vehicle for DARPA, dubbed XRQ-73. Given that President-Elect Donald Trump has historically advocated for strong military spending, evidenced by the USSF in which NG plays a significant role, it is safe to say this trend will continue.
Against the 52-week average of $476.58, NOC stock is now priced at $491.59 per share, significantly under its high point of $555.57 for the same period. Per 18 analyst inputs, the average NOC price target is $577.56 per share, with a low forecast of $540 and a high ceiling of $643 per share.
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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.