The space race is real and is part of our daily life as humanity. More and more companies are participating in this sector by creating spacecraft, engines, software, and technology, among many other things. Understanding that the aerospace sector is one pumping out jobs and attracting investment dollars today, you could line up your portfolio for a successful swing in the coming months, and that is why you’re here, as I have done the homework for you to succeed.
If you want to participate in this sector and contribute to the exploration and the space race, here are three space stocks for 2024.
Space Stocks: Leidos (LDOS)
Leidos Holdings (NYSE:LDOS) is making waves in 2024 as one of the top space stocks worth considering for your investment portfolio.
Its financials look solid, with a 9% year-over-year increase in revenue to $3.9 billion. Despite a net loss, the company boasts an adjusted EBITDA of $451 million and a remarkable 28% growth in non-GAAP diluted earnings per share.
They are generating significant cash flow, with $795 million from operations and $745 million of free cash flow. Its impressive net revenue of $7.9 billion shows solid performance, with a revenue-to-expense ratio of 2.0 for the quarter and 1.2 for the last twelve months.
A key driver of Leidos’ success is a recent $700 million prime contract from the National Security Agency (NSA). This contract reinforces Leidos’ position as a leading provider of prototype and technology development support to the NSA, focusing on responding to dynamic mission needs.
The company’s commitment to reducing risk, cost, and schedule for the government further solidifies its position in the intelligence community.
In another significant achievement, Leidos Partnership for Defense Health (LPDH) has expanded the deployment of the MHS GENESIS electronic health record (EHR) GENESIS to an additional 7,000 DoD physicians and providers as part of Waves OKINAWA/S. KOREA.
This follows successful EHR deployments to European Military Treatment Centers and major DoD state facilities earlier this year.
These achievements highlight Leidos’ multifaceted contributions, ranging from homeland security efforts to advancements in defense healthcare technology.
Planet Labs (PL)
Planet Labs (NYSE:PL) is making waves in the space industry with a recent surge in quarterly revenue, which has reached an impressive $55.4 million.
Its success is tied to its commitment to advancing satellite technology and expanding data offerings. In particular, the company has launched 36 SuperDove satellites and introduced the Pelican Tech demonstration satellite, demonstrating its dedication to enhancing Earth observation capabilities.
A key achievement for Planet Labs is the introduction of the Global Forest Carbon Product, which uses preprocessed data known as Planetary Variables.
These variables measure critical land surface conditions such as soil water content, land surface temperature, crop biomass, and forest structure.
Integrating these variables into the Sentinel Hub platform, acquired through the Sinergise agreement in August 2023, is a significant step toward making Earth observation data more accessible and impactful.
They successfully demonstrated satellite-to-satellite communications under NASA’s Communications Services Project (CSP) in a major technical feat.
As a subcontractor to SES Space & Defense and Telesat Government Solutions, real-time space-to-space connectivity solutions from Low Earth Orbit (LEO) satellites improve responsiveness and last-minute tasking, underscoring Planet’s commitment to timely information.
The company’s Vice President of Avionics and Spacecraft, Kiruthika Devaraj, expressed her enthusiasm for the ground demonstration campaign, a crucial advancement in Planet’s mission to provide its customers with the most timely information possible.
Astra Space (ASTR)
Astra Space, Inc (NASDAQ:ASTR) is a spacecraft engine manufacturing and launch services company. It has gained attention as one of the best space stocks to consider adding to your portfolio in 2024.
The company has recently achieved some significant milestones and business highlights contributing to its growing reputation. One of the critical aspects of Astra’s recent success is the announcement of the delivery of 8 Astra Spacecraft Engines from its Sunnyvale manufacturing facility.
Following customer acceptance, these deliveries are expected to translate into revenue in Q4 2023. In addition, they have secured two new contracts for their Astra Spacecraft Engine, valued at $11.7 million.
Notably, one of the contracts is with a major non-U.S. defense company, and the other is with an international commercial space company.
In financial terms, during the third quarter of 2023, they posted a GAAP net loss of $29.7 million, an adjusted net loss of $27.4 million, and an adjusted EBITDA loss of $24.7 million.
Despite the losses, the company demonstrated strategic decision-making by reallocating its workforce. Astra moved personnel from its Launch Services organization to its Astra Spacecraft Engines business to support its growing customer base better and manage the backlog efficiently.
It has been proactive in its business development, having previously announced 278 cumulative committed orders for the Astra Spacecraft Engine.
A notable partnership contributing to Astra’s success is the contract with Apex Technology, Inc., in which Astra will provide five spacecraft propulsion kits for Apex’s satellite bus platform.
This partnership enables the unbundling of the Astra Spacecraft Engine™ module into four subsystems, providing satellite builders with flexibility and shorter lead times for customization. This approach aligns with Astra’s goal of accelerating spacecraft development at scale, similar to how development kits have transformed the software industry.
As of this writing, Gabriel Osorio-Mazzilli did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
