This Space Stock Could Make You Rich (Hint: It's Not SpaceX)

Source Motley_fool

Key Points

  • SpaceX has drawn considerable market interest since it completed its IPO.

  • The space economy is expected to grow considerably over the next few years.

  • Many -- but not all -- SpaceX competitors trade at high valuations.

  • 10 stocks we like better than Redwire ›

It wasn't so long ago that hysteria surrounding the Space Exploration Technologies (NASDAQ: SPCX) initial public offering (IPO) was roiling the market. As access to Elon Musk's space business became available, many decided to shoot for the stars with SpaceX stock, surmising that the growth opportunity was one they couldn't afford to pass up.

But SpaceX is hardly the only space stock that deserves the attention of those focused on the final frontier. In fact, there's one compelling space stock opportunity that's flying under the radar of space stock enthusiasts -- though it should be shining brightly.

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Digital rocket with finance icons and stock chart.

Image source: Getty Images.

Look to this stock for space economy exposure, and you'll see red in a positive way

Unlike SpaceX, which specializes in transporting crews and cargo from Earth to space, Redwire (NYSE: RDW) focuses on supporting various needs of customers operating in space. With a spacecraft portfolio that includes five platforms, Redwire provides customers with spacecraft operating in a variety of orbits, including very low Earth orbit, geostationary orbit, and beyond.

Besides spacecraft, Redwire provides diverse systems that form the foundation of space infrastructure, such as solar arrays that meet spacecraft power needs, docking systems that support autonomous docking of crewed vehicles, and cargo vehicle station modules (among other spacecraft).

In addition, Redwire recognizes its proficiency with microgravity as a significant growth opportunity. Through its SpaceMD business, for example, Redwire plans on growing seed crystals in orbit that will subsequently be used by companies to develop both new and reformulated pharmaceuticals.

Redwire's financials are rocketing in the right direction

While Redwire continues to incur net losses, the company is making significant strides toward profitability. In the second quarter of 2026, Redwire reported a gross profit of $32.5 million, up from a gross loss of $19.1 million during the same period last year. The improvements extended to the bottom of the income statement, where Redwire reported a net loss of $40.9 million -- narrower than the $97 million net loss it reported in Q2 2025.

Demonstrating how its growth trajectory remains on track, Redwire reported a contracted backlog of $322 million at the end of June 2026, representing a 7.4% increase from $299.8 million at the end of 2025. Plus, in August, management reaffirmed its 2026 revenue forecast of $450 million to $500 million. Should the company achieve the midpoint of this guidance, it will represent year-over-year top-line growth of 42%.

Although some growth companies are mired in debt -- a potentially foreboding sign for potential investors -- Redwire's strong balance sheet bodes well for its prospects. At the end of June 2026, Redwire's balance sheet featured a net cash position of more than $509 million.

Some space stocks have sky-high valuations, but not this one

Long gone are the days when the space economy seemed the stuff of science fiction. According to business research firm Fortune Business Insights, the global space economy market size was valued at $648.4 billion in 2025, and it's expected to grow to $1.2 trillion by 2034. This recognition that the market is poised for substantial growth, coupled with the expectation that companies operating in space are well-positioned to flourish, has led to lofty valuations.

SpaceX stock, for example, is currently changing hands at about 68 times trailing sales. Some SpaceX competitors also trade at high valuations, such as Rocket Lab, which has a trailing P/S ratio of 56. Currently, Redwire stock is valued at a very reasonable 5 times trailing sales. Between Redwire's proficiency across various niches of the space economy, its improving financials, and the stock's reasonable valuation, today's a great time for investors to click the buy button on Redwire.

Should you buy stock in Redwire right now?

Before you buy stock in Redwire, consider this:

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*Stock Advisor returns as of September 27, 2026.

Scott Levine 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.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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