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Is Now the Time to Invest in Space Exploration?

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The mystery of the unknown fuels us to innovate and find answers. Perhaps the biggest mystery throughout the existence of humanity has been outer space. The barriers to space exploration have been astronomical, but the technology has finally arrived and accelerated our ambitions.

For the first time ever, the final frontier looks approachable for both individuals and businesses. Enterprises, with the backing of private money, are starting to acquire the resources and technology to expand their investments into the space economy.

Right now might be the best time to be invested in these companies laying the groundwork for the next trillion-dollar industry.

Space is Going Mainstream

Just a decade ago, rocket launches were a rare occasion and when they happened, it was a big deal. But with the advancement in reusable rocket technology, we now see launches broadcast on TV monthly, as billionaire backed companies race to space.

Jeff Bezos, Elon Musk and Richard Branson are fueling the push, turning their focus from their businesses here on Earth, to the stars above. Companies like SpaceX, Blue Origin and Virgin Galactic are building the foundation for what’s to come. Space tourism is not for everyone yet, but the interest is growing as the idea of visiting space is going mainstream.

Of those companies, only Virgin Galactic (SPCE) is publicly traded, so it’s hard for the average investor to get full exposure. While SpaceX will likely IPO soon, many investors don’t know that there are already many under-the-radar stocks that have exposure to the space economy.

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Space Race Riches: Little-Known Stocks with Huge Profit Potential

SpaceX and Blue Origin get the headlines, but research indicates a handful of lesser-known space stocks may be much more profitable.

One startup has plans to launch a rocket into space every 29 hours – 10 times faster than SpaceX. Another is a “one-stop rocket shop” already under contract to send missions to the moon, Venus and Mars. Shares are projected to spike +100%.

Zacks’ just-released special report reveals 4 space stocks with extreme upside potential. Be one of the first to see it. Opportunity ends midnight Sunday, November 14.

See Zacks’ Top Space Stocks Now >>

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Big Bang Growth

It all starts with getting there and advances in technology have made the trip to space much easier. Costs have declined significantly and reusable rockets are making a trip to space more affordable.

The Space Foundation recently released a report in which it claims the global space economy rose to $447 Billion in 2020. This was up 55% over the last ten years. UBS expects that to jump another 80% by 2030.

While tourism is getting all the hype, some other space sub sectors that could experience exponential growth include energy, mining, real estate and hospitality.

Exploring the Space Economy

It’s important to highlight two different categories before we get into the specific sub-sectors of the space economy.

First, we have the space-for-earth economy. This involves goods or services that are produced in space, but made for earth. Obviously, most of the current revenues are produced in space at the moment and would fit in this category on the service side.

The space-for-earth economy includes space infrastructure, human space flight, rocket launchers, cellular broadband and satellite companies.

Next, we have the space-for-space economy. Here we have goods and services that are produced in space, for space. This aspect has yet to have any meaningful impact on the space economy, but that will change because of recent technology.

Let's take a quick look at some future space industries.

Energy – Think space-based solar power that would allow for solar to be captured 24 hours a day! Not only will energy be produced in space for us down here, but it can be fuel for the space-for-space economy.

Mining – The asteroid belt between Mars and Jupiter is thought to contain a massive amount of value in raw materials. According to NASA, the belt is worth $700 quintillion or $100 billion for each human on earth. Cost remains a big hurdle to fulfill this mining dream, but the benefits boggle the mind.

Real-Estate and Hospitality – In the not-so-distant future, there will be businesses that involve leasing space-in-space shelter, whether it be space stations or orbiting hotels.

Tourism – The billionaire players we discussed above are leading the charge. This movement is bringing the eyeballs and the money to the space tourism industry that is needed to grow. UBS sees the space tourism market at $3B by 2030. 

Stocks Already Shooting for the Moon 

While many new companies have yet to go public, there are a handful of stocks that investors can choose from. Check out these returns that have come over the last six months in just three space names:

Stock A is a space launch company that provides satellite launch services. The stock took off back in February, moving up over 120% in just a few weeks after it came to market.  The stock has come back down to earth, but it was over 30% in October. Is it time for this one to take off again?

Stock B is a spaceflight company that rocketed up over 300% this summer. It has pulled back all the way to levels seen before the move higher. Will another stock launch come into the end of the year?

Stock C delivers capabilities in space infrastructure and earth intelligence. The stock started the year with a 52% move higher, but has since pulled back to 2020 levels. Is it time to get back in?

In Summary

Humans have always had the desire to explore the cosmos, but the barriers of cost and technology were far too great until now. Private enterprises, backed by billionaires that grew up on Sci-Fi, are building the “elevators” to space. Those that follow will expand access and take humans into the next multi-trillion-dollar economy.

Don’t miss out on these opportunities as humans and investors literally go to the moon.

I just released Space Exploration: The Next Trillion-Dollar Industry, a brand-new Special Report to help you capitalize on the emerging space economy. You’re invited to download it today.  

In the report I highlight 4 cutting-edge stocks I believe any investor interested in space exploration needs to know about. Most investors have never heard of some of these stocks, but they’re each making tremendous contributions to the new space race.

I encourage you to check out this report today. But don't delay. The deadline to download Space Exploration: The Next Trillion-Dollar Industry is midnight Sunday, November 14.

See 4 space exploration stocks now >> 

Good Investing,

Jeremy Mullin
Stock Strategist

Jeremy Mullin has been a professional trader for more than 15 years with specific expertise in profiting from patterns set by High-Frequency Traders. He is the editor of Zacks Counterstrike.




 

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