2 Space Stocks to Buy in July (Hint: Not SpaceX)

Space stocks are getting a lot of attention this summer. Some of that can be attributed to the buzz surrounding Space Exploration Technologies (NASDAQ: SPCX) and its record-setting IPO last month that raised nearly $86 billion. SpaceX already sports a market capitalization of more than $2 trillion, making it one of just a handful of stocks in the trillion-dollar club.

But the stocks getting the most attention aren't always the best investment opportunities. SpaceX stock has an extreme valuation, meaning investors have already priced it to perfection.

However, there are other compelling investment options in the space stock arena. Two that stand out are Rocket Lab (NASDAQ: RKLB) and Redwire (NYSE: RDW). Let's look at both.

Image source: Getty Images.

Space stock No. 1: Rocket Lab

Rocket Lab is having a great run of its own. The stock is up 1,680% in the last three years, including a gain of more than 50% this year, as investors got excited about its end-to-end launch service business.

Rocket Lab has completed more than 90 launches to date with its two families of space vehicles. Electron is a two-stage orbital launch vehicle used to place small satellites into orbit, while Haste is a suborbital vehicle designed for testing and deploying technologies at high speed. It's currently developing a larger vehicle, Neutron, for deep space missions and human spaceflight.

Rocket Lab has two launch pads in New Zealand and one in Virginia, and has contracts with both private companies and governments, including with NASA, to support missions to Mars and the Moon. Other missions have been with the U.S. Space Force, the Japanese company Synspective, and the Japan Aerospace Exploration Agency (JAXA), among others.

Rocket Lab also announced an agreement to acquire Iridium Communications, a publicly traded company that maintains a low-Earth satellite network and has more than 2.55 million global customers. Rocket Lab intends to link its launch and satellite manufacturing business with Iridium's global satellite network to create an integrated space company.

Space stock No. 2: Redwire

Redwire isn't as hot as Rocket Lab, but it's solid in its own right. The stock is up nearly 400% over the last three years and has gained 65% in 2026.

The company makes aerospace infrastructure, autonomous systems, and products that incorporate digital engineering and AI automation. Redwire was a part of NASA's Artemis II mission, which was the first crewed flyby of the Moon since 1972. Astronauts used Redwire's advanced optical imaging and sun sensor technology as part of the ship's internal and external camera system, which enabled in-flight inspection of the craft.

Its technology operates a greenhouse -- the first commercial greenhouse in space -- on the International Space Station, where it is studying crop production in space to support long-duration human spaceflight.

Redwire is also an emerging defense company, as it was one of 14 companies selected by the Space Force to compete for contracts under the 10-year Andromeda program to track and identify objects in Earth orbit, where many communications and missile-warning systems operate.

Its defense tech revenue jumped in the first quarter to $44.3 million, up from $9.2 million the previous year, accounting for nearly all of Redwire's overall 58% revenue gain for the quarter.

"The Andromeda contract vehicle is focused on rapidly fielding proliferated space domain awareness capabilities in geosynchronous orbit," CEO Peter Cannito said. "We see this as a proof point for the success of our moving up the value chain strategy and further validation that we are strategically positioned as a trusted prime contractor on next-generation spacecraft."

Why these two stocks may be better than SpaceX

SpaceX is still flush from its IPO and will likely be volatile for the next few months, particularly as the staggered lockup period allows institutional investors to cash out their shares. SpaceX also has an extreme valuation, with a price-to-sales ratio of 115.

Rocket Lab and Redwire provide alternatives with companies that have already emerged from their IPOs and have several years of performance to bank on. Rocket Lab's merger is getting a lot of interest, and the stock has a pricey (but not as eye-watering) P/S of 85.5. Redwire, meanwhile, has more of its fingers in space infrastructure and defense, and has a P/S ratio of only 5.

While SpaceX's valuation and volatility can be risky, Rocket Lab and Redwire offer exposure to some interesting growth trends without quite as high a premium.

Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Rocket Lab. The Motley Fool has a disclosure policy.