Stock Market

If You Can Only Buy One Space Stock in December, It Better Be One of These 3 Names

The space age is here and it is here to stay. Our soils and sky are not enough for us and that is why we decided to go a little further and explore all that unknown that is waiting for us. There are several companies doing an incredible job and leveraging technology to achieve wonderful milestones and discoveries that will mark a before and after in our lives. There are many a space stock that are worth your time. Here are some of the best!

Leidos (LDOS)

Leidos Holdings (NYSE:LDOS) had an impressive year financially, with revenues reaching $3.9 billion, up 9% year-over-year. Despite a net loss of $396 million, the company’s adjusted EBITDA of $451 million and non-GAAP Diluted Earnings Per Share of $2.03, up 28%, demonstrate its resilience and growth.

The company’s commitment to stability is evidenced by its healthy cash flows from operations of $795 million and free cash flow of $745 million.

In the space sector, Leidos has positioned itself as an attractive investment option. A notable collaboration with Stratolaunch, LLC secured a flight test contract for the Navy’s Multi-Service Advanced Capability Test Bed (MACH-TB), underscoring Leidos’ commitment to innovative approaches to hypersonic flight testing.

Stratolaunch’s Talon-A hypersonic vehicle Talon-A, part of this initiative, is designed for early and affordable testing crucial to the development of hypersonic capabilities.

They have also made significant contributions to space exploration, successfully deploying the Exploration Potable Water Dispenser (xPWD) for the International Space Station (ISS). Developed nearly three years, the xPWD ensures astronauts have access to high-quality water while maintaining a healthy environment for their research.

Its advanced features, which include a thermal expansion device and a chemical-free ultraviolet reactor, underscore Leidos’ dedication to overcoming the challenges of space exploration through innovation.

Rocket Lab (RKLB)

Source: T. Schneider / Shutterstock.com

Rocket Lab (NADSAQ:RKLB) in the last quarter, they have conducted two Electron missions that have not only been a success, but have also highlighted their commitment to making the Electron the first reusable small orbital rocket. Imagine launching satellites for NASA and other interesting customers, then splashing down gracefully in the ocean like a space ballet. They even used a Rutherford engine that had already flown, adding a green touch to their cosmic endeavors.

They had a minor setback in September, but bounced back stronger than ever. The FAA has given them the green light to resume Electron launches, proving they have the go-ahead from regulatory agencies. They are also preparing a special mission for a Japanese Earth imaging customer, proving that they are all about custom space solutions.

Rocket Lab is not just launching rockets, it is expanding and evolving. They’ve acquired assets in New Zealand, opened a sleek Engine Development Center in California, and even created a Space Structures Complex in Maryland.

It’s as if they are building their own space empire, from rocket engines to spacecraft components. The Neutron program is also moving ahead in leaps and bounds, with successful tests and breakthroughs that promise great things for the future.

Best of all, Rocket Lab isn’t just sending things into space, it’s making them better. Detailed analysis of that mishap in September revealed some very strange conditions that caused it. It’s like solving a space mystery, and it shows how seriously they take safety and improvement. Rocket Lab is not just a space company; it’s a front-row ticket to the future of space exploration.

Lockheed (LMT)

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Lockheed Martin (NYSE:LMT), a major player in the aerospace and defense sector, is attracting attention as an attractive space stock to invest in this December. The company’s stellar third quarter 2023 financial results, with net sales reaching $16.9 billion and net income of $1.7 billion, reflect its strong financial health.

Shareholders benefited from $2.5 billion returned through dividends and share repurchases, underscoring Lockheed Martin’s commitment to creating value for investors.

What sets them apart is their unwavering commitment to cutting-edge technology. The upcoming launch of Tantrum, a broadband Electronically Steerable Antenna (ESA) payload demonstrator, underscores the company’s investment in innovative solutions to accelerate on-orbit missions.

This technology promises to revolutionize on-orbit sensor calibration, a critical aspect of modern safety needs.

Its dedication to pushing technological boundaries is evident in other initiatives, such as the Pony Express 2 and Tactical Satellite projects. These self-funded technology demonstrators underscore the company’s commitment to showcasing technology maturity and introducing new capabilities to the ever-evolving space exploration landscape.

The Next Generation Interceptor (NGI) program is another of Lockheed Martin’s accomplishments. The success of the digital All Up Round (AUR) Preliminary Design Review with the Missile Defense Agency confirms the readiness of Lockheed Martin’s solution to counter long-range ballistic missile threats, demonstrating its prowess in meeting mission requirements.

By adopting digital engineering tools, Lockheed Martin’s approach not only demonstrates innovation, but also emphasizes the affordability of its programs. The company’s digital strategy enables early and frequent testing of hardware and software, which contributes to the overall success of its projects.

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

Gabriel Osorio is a former Goldman Sachs and Citigroup employee. He possesses discipline in bottom-up value investing and volatility-based long/short equities trading.

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