Back to top

4 Stocks to Gain From Trump & NASA's Space Ambitions

Read MoreHide Full Article

On Monday, Jun 18, President Donald Trump expressed his desire and eagerness to take America to the top spot in the space race once again. He noted that the country’s commercial space industry has been enterprising, when it comes to breaking new ground in space exploration.

Further, NASA also published a report on Jun 20 about how it plans to defend the earth from asteroid attacks. The report also states that the space agency could use the government’s help in such pursuits. Major space and defense stocks have rallied since such developments. Investors could seize such an opportunity to rake in some gains by investing in defense and space stocks.

Trump Vows to Dominate Space

The space race seems to have fizzled out in the sense that human expeditions are few and far to come by. This stems from the fact that governments have been reluctant in sending humans to the space because of the risks involved and the huge amount of money associated to such expeditions.

Speaking at the White House on Monday, Trump spoke extensively about how he planned to make America the top power in space. He also vowed to “reclaim” for his country, with the help of his team, the United States’ “heritage as the world's greatest space-faring nation.”

He further stated that he wants the United States to lead explorations on Moon and Mars, essentially leaving Russia and China behind. He aspires to create a sixth branch of American military, which he termed as the “space force.”

There have been decades of contemplation regarding the creation of the U.S. Space Corps, with the most recent effort being in 2017. The U.S. House Armed Services Committee even drafted a bill for the corps under the 2018 National Defense Authorization Act.

NASA’s Report to the U.S. Government

On Wednesday, NASA along with a few federal officials published a report on the approach that the United States should take in the coming years to protect our plant from a spate of asteroid attacks. The 18-page report, has been termed "The National Near-Earth Object Preparedness Strategy and Action Plan." The agenda seeks contribution from different departments within the federal government.

Officials from the White House have gone on record to say that Trump’s “space force” might be used extensively in such pursuits. Trump’s space ambitions can possibly be used to fund deep space explorations in the future. Investments channeled properly for such ambitious expeditions can be used in the future.

Such developments actually led to a surge in space and defense stocks. The Space Index (^SPACE) which tracks companies engaged in space and related activities has rallied approximately 1.2% since Trump’s speech. The index constitutes some of the major players from the sector, the likes of which include Boeing, Lockheed Martin (LMT - Free Report) , AT&T (T - Free Report) , Northrop Grumman, Aerojet Rocketdyne Holdings (AJRD - Free Report) and Viasat (VSAT - Free Report) to name a few.

4 Best Choices

Since his election, Trump has vowed to get Americans back to space in a bid to reclaim the top spot in space race. Further, NASA’s commitment to safeguard the earth from celestial rocks has provided the necessary impetus for further investments in such projects.

In this context, we have selected four stocks that are expected to gain from these factors. These four stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Northrop Grumman Corporation (NOC - Free Report) is the owner and operator of a defense and aerospace company. It provides command, control, communications and computers, intelligence, surveillance services for space as well as defense systems.

The company is based out of Falls Church, VAand sports a Zacks Rank #1. The expected earnings growth rate for the current year is 23.82%. The Zacks Consensus Estimate for the current year has improved 5.2% over the last 60 days.

The Boeing Company(BA - Free Report) is a designer and manufacturer of military aircraft, satellites, missile defense, human space flight, and launch systems.

The Zacks Rank #2 company is based out of Chicago, IL. The expected earnings growth rate for the current year is 21.80%. The Zacks Consensus Estimate for the current year has improved 4.3% over the last 60 days.

Textron Inc. (TXT - Free Report) is a manufacturer of turboprop and piston engine aircraft, military trainer and defense aircraft as well as space flight systems.

The company is based out of Providence, RI and carries a Zacks Rank #2. The expected earnings growth rate for the current year is 28.57%. The Zacks Consensus Estimate for the current year has improved 1% over the last 60 days.

Wesco Aircraft Holdings, Inc. (WAIR - Free Report) is a distributor of defense and aerospace products. It also serves original equipment manufacturers and their subcontractors from both space and military sectors.

The company is based out of Valencia, CA and has a Zacks Rank #2. The expected earnings growth rate for the current year is 29.94%. The Zacks Consensus Estimate for the current year has improved 10% over the last 60 days.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

More from Zacks Analyst Blog

You May Like