Investing in space stocks can be an exhilarating venture, and for just $1,000, you have the opportunity to join this exciting frontier. Let's dive into one of the best space stocks to consider at the moment.
Investing in space stocks can be an exhilarating venture, and for just $1,000, you have the opportunity to join this exciting frontier. Let's dive into one of the best space stocks to consider at the moment.
In the cutting-edge world of the space industry, SpaceX isn't the only company making headlines. Private auctions for employee shares at a whopping $350 billion valuation? That's old news. Rocket Lab USA's shares, Spy satellite operators Planet Labs, and Spire Global are all experiencing astronomical growth, with Rocket Lab shooting up an incredible 370% in the past year. Yet, if I were an investor, I'd be eyeing Intuitive Machines (LUNR 0.05%) instead.
Why, you ask? Because Intuitive Machines just made the ultimate splash, landing a spacecraft on the moon in 2023. After its initial public offering (IPO), Intuitive stock cost a modest $40 a share, allowing a $1,000 investment to buy only 25 shares. But after their successful lunar landing, everything changed. Once upon a time, wouldn't you know it, Intuitive stock sunk to the $2-per-share level. However, its fortunes took a dramatic turn for the better when it won a NASA contract worth a staggering $4.8 billion.
Today, Intuitive Machines' shares are still a steal, selling below $12, so a $1,000 investment will buy you more than 80 shares! Indeed, this space stock is going places. But is the good news already baked into the shares, or can the stock still soar higher?
Assessing Intuitive Machines stock value
It all depends on the future. Despite the positive buzz, Intuitive Machines isn't exactly eye-catching from a financial perspective. Its trailing 12-month sales are modest at $204 million, giving it a high sales valuation of 5.3 times. The company has negative earnings over the past year and burns through cash at a rate of about $85 million per year.
But looking to the future, Intuitive Machines expects to be profitable by 2026, with sales of just under $500 million and earning about $0.22 per share. At such a valuation, the stock would have a more reasonable 2 times annual sales value. Grant it, the stock's forward P/E ratio would still be high at 53.5, but considering the expected sales growth of nearly 50%, the high price begins to make more sense.
The bottom line is: If Intuitive Machines can achieve the success it envisions in its NASA Near Space Network contract, the stock could climb even further.
Intuitive Machines: A promising investment opportunity
This $1 billion-plus market cap company is much more than meets the eye. With a successful lunar landing and major NASA contracts, it's well-positioned for future growth. But current Wall Street estimates might underestimate Intuitive's potential revenue growth and earnings. By securing the Near Space Network contract, Intuitive Machines could surpass current revenue and earnings expectations, making now the perfect time to invest in this promising company.
So go ahead and take a giant leap of faith into the world of Intuitive Machines. The best investment may be sitting right under everyone's noses, waiting for that perfect moment to shine.
Given the context, here are two sentences that contain the words 'finance', 'investing', and 'money':
- If you're interested in finance and looking for potential investing opportunities, Intuitive Machines with its modest sales valuation and high sales growth expectation could be an intriguing choice.
- With the company's current share price relatively low, investing in Intuitive Machines could be a strategic move for those with a risk-tolerant approach to finance and money management.