Space Stocks Skyrocket as Trump Eyes Exploration, Analyst Says

Space stocks have been on a tear since President Trump's inauguration speech, in which he vowed to send American astronauts to Mars. Cantor Fitzgerald analyst Andres Sheppard has a bullish outlook on the sector, highlighting Rocket Lab USA (RKLB) and Intuitive Machines (LUNR) as particularly well-positioned companies.

Rocket Lab USA, a space-launch company, has seen its stock price surge by 30.3% following Trump's speech. The company is planning the first test launch of its new Neutron rocket this year, which will have a payload capacity of up to 13,000 kg per expendable launch for missions into orbit. The Neutron launch vehicle is being tailored for commercial and U.S. government constellation launches and will ultimately be capable of human space flight. Cantor Fitzgerald has an overweight rating for Rocket Lab, and out of 14 analysts surveyed by FactSet, eight have a buy rating and six have a hold rating for the company.

Intuitive Machines, a space-exploration company, has also seen its stock price climb by 23.9% following Trump's speech. The company successfully launched its first lunar mission in February 2024 as part of NASA's program and plans to send its second mission, IM-2, to the lunar surface in early 2025. This mission aims to validate water-hunting infrastructure on the moon and mobility services. Cantor Fitzgerald has an overweight rating for Intuitive Machines, and all six analysts surveyed by FactSet have a buy rating or equivalent for the company.

Sheppard believes that Trump's focus on space exploration will continue to drive growth in the sector. "Trump stated that Americans will 'pursue our manifest destiny into the stars, launching American astronauts to plant the Stars and Stripes on the planet Mars,'" he wrote in a note released Tuesday. "In doing so, Trump expressed his support for the Space Economy, and we continue to expect future growth in the industry, fueled by additional investment into space exploration."



The analyst also pointed out that Rocket Lab has completed successful launches in two different hemispheres in less than 24 hours, a significant milestone. Additionally, the company is expected to generate $106 million in revenue in Q2 2024, a 71% year-over-year growth.

Intuitive Machines, on the other hand, has received $30 million from NASA for mapping efforts, with total funding of $116.9 million by 2027. The company's focus on lunar missions aligns with the broader goals of space exploration, and successful Mars missions by SpaceX could stimulate interest and investment in lunar and other interplanetary missions.

In conclusion, the bullish outlook on space stocks, particularly Rocket Lab USA and Intuitive Machines, is driven by President Trump's renewed focus on space exploration and the companies' strong financial performance and innovative products. As the space industry continues to grow, investors may want to consider these stocks for their portfolios.