2 Aerospace Stocks to Buy and Hold for the Next 20 Years

The aerospace industry usually isn't considered a high-growth market. But over the past few years, some innovative aerospace companies have attracted significant attention with new rockets and aircraft that offer many advantages over their predecessors.

Two such companies are Rocket Lab (NASDAQ: RKLB) and Joby Aviation (NYSE: JOBY). Let's see why these two stocks could be worth buying and holding for the next 20 years.

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Rocket Lab

Rocket Lab develops reusable orbital rockets. It's already launched its Electron rocket, which can carry small payloads of up to 300 kilograms into space, 87 times as of this writing. It plans to launch its second rocket, the Neutron, to carry even heavier payloads later this year.

Rocket Lab's customers include NASA, the U.S. Space Force, the Swedish National Space Agency, Capella Space, Kinéis, and BlackSky Technology. It's much smaller than SpaceX, but it's carved out a niche by carrying smaller payloads than its larger rival.

From 2025 to 2028, analysts expect Rocket Lab's revenue to surge from $602 million to $1.53 billion as it launches more rockets and secures more contracts. Its stock isn't cheap at 40 times its 2028 sales, but it could have plenty of upside over the next two decades as low Earth orbit (LEO) satellite constellations expand and space agencies launch new orbital missions.

Joby Aviation

Joby develops electrical vertical takeoff and landing (eVTOL) aircraft as greener, safer, and easier-to-land alternatives to conventional helicopters. Its S4 eVTOL can carry one pilot and four passengers, travel up to 150 miles on a single charge, and achieve a maximum speed of 200 miles per hour. Unlike many other eVTOL makers, which use separate propellers for takeoff and cruising, the S4 uses a single propeller for both. That key difference reduces its weight and drag, and enables it to travel faster and farther than many other eVTOLs.

Joby hasn't launched any commercial flights yet, but major companies such as Toyota, Delta Air Lines, and Uber are already backing the company. Delta and other airlines plan to bundle Joby's short-range air taxi flights into their tickets for premium "home to airport" services, while Uber is integrating Joby's flights into its new Uber Air platform.

From 2025 to 2028, analysts expect Joby's revenue to rise from $53 million to $458 million as it expands its commercial air taxi flights. Fortune Business Insights expects the global eVTOL market to grow at a 36.8% CAGR from 2026 to 2034. So while Joby's stock might seem pricey at 23 times its 2028 sales, it could still have plenty of upside over the next 20 years.

Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends BlackSky Technology, Rocket Lab, and Uber Technologies. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.