The space industry is experiencing immense growth as global interest in space exploration increases. Analysts forecast the market may top $1 trillion within the next decade, and it presents an opportunity for investors to capitalize on the industry’s expansion. As technology evolves, the industry creates opportunities for organizations across transportation, communications, defense and more. That said, the development of space tech comes with considerable risks. That said, space stocks merit consideration for those pursuing long-term portfolio growth and willing to accept some volatility.
In this post, we’ve highlighted the top three space stocks. We’ll analyze their finances, performance and why they are the top space stocks to buy right now.
Teledyne Technologies Incorporated (TDY)
Teledyne Technologies (NYSE:TDY) is the first space stock on the list. The company has been around for more than 63 years and is headquartered in California. Today, they provide modern technologies for growth markets like Aerospace and Defense across the United States, Canada and Europe.
Today, Teledyne focuses on advanced aerospace systems and solutions—like aircraft electronics, defense systems and satellite tech—while also serving markets including factory automation, environmental tracking and pharma research.
Recently, Teledyne strengthened its market position by acquiring Xena Networks. This acquisition of a leading provider of high-speed networking test solutions represents a valuable addition to Teledyne’s current offerings.
In Q3, Teledyne Technologies reported net revenue of $1.4 billion, a 2.9% increase compared to the same quarter of last year. Meanwhile, net income came in at $198.6 million, an 11.4% increase YoY. Analysts are also confident in Teledyne, rating it as a “Strong Buy” with a high target price estimate of $495, representing about a 21% upside potential from its current price.
Leidos, Inc. (LDOS)
The next space stock on the list to buy is Leidos Holdings, Inc. (NYSE:LDOS). Leidos is a $19.55 billion company headquartered in Reston, Virginia. The company provides services to the U.S. government and commercial customers. Originally founded more than 54 years ago as Science Applications Internal Corporation, Leidos merged with Lockheed Martin Information System & Global Solutions Business (IS & GS) in 2016.
Today, Leidos works with the Department of Defense, Department of Homeland Security, Intelligence Community and other federal agencies, focusing on aerospace, defense, information technology and biomedical research.
A recent example that boosted Leidos’ reputation was the successful deployment of its customized Air Traffic Management system SkyLine-XTM in New Zealand, demonstrating its ability to provide modern solutions for infrastructure needs.
Leidos revenue was $3.92 billion for the third quarter, a 9% increase from last year. However, the company reported a net loss of $396 million. This was mainly due to impairment and restructuring charges related to the Security Enterprise Solutions unit. On the bright side, Leido’s third-quarter adjusted EBITDA rose 21%. Meanwhile, non-GAAP net income climbed 28% or $2.03 per share YoY.
On top of that, analysts have issued Leidos a “Strong Buy” rating with a $136 high price target, representing about a 25% upside from its current trading price.
Planet Labs PBC (PL)
The last space stock to buy on the list is Planet Labs PBC (NYSE:PL). Planet Labs is an Earth-imaging company that has been around for more than 13 years. The company has an important yet interesting mission: to capture daily images of the Earth.
Planet Labs uses small satellites called “Doves,” which are Triple-CubeSat miniature satellites equipped with high-powered telescopes and cameras to achieve this mission. The “Doves” go up as secondary payloads on rocket missions, and once in orbit, they continuously scan the Earth, which provides Planet Labs with up-to-date satellite imagery. The images support applications like climate monitoring, crop yield prediction, urban planning, and disaster relief.
PL reported solid third-quarter financial results, with revenue increasing 11% year-over-year to $55.4 million, with a 94% recurring annual contract value. Planet Lab’s customer base grew 13% in the same quarter to 976 customers. EPS also beat estimates by 13.33%, and analysts also issued the company a “Strong Buy” rating with a high price target of $5.5, representing an upside of around 114% from its current share price.
On the date of publication, Rick Orford did not have (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.