3 Stocks to Buy Before SpaceX Goes Public

As investors wait for the SpaceX initial public offering (IPO), money is already flowing into space stocks. Year to date, shares of Rocket Lab (NASDAQ: RKLB) and Redwire (NYSE: RDW) are currently up over 78%, while Linde (NASDAQ: LIN) is up 20%. These companies cover launches and space systems, infrastructure and components, and industrial gases used for rocket propulsion.

SpaceX is expected to fetch a valuation of anywhere from $1.7 trillion to $2 trillion at its IPO, expected on June 12. This would make it the largest stock market debut in history. A listing of that magnitude would spotlight both the industry's current and future value and likely lead to greater investor demand. Here's why Rocket Lab, Redwire, and Linde are the right stocks to ride the space boom.

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Rocket Lab

SpaceX completes more rocket launches than anyone, according to The Motley Fool's research, but it's not the only game in town. Rocket Lab is growing quickly. It enjoys many of the same advantages as SpaceX by doing everything in-house, including spacecraft manufacturing and launches. As CEO Peter Beck noted, "This vertical integration means we control quality, schedule, and cost in ways that our competitors simply can't."

Rocket Lab stock has soared this year, following a record first quarter. Revenue hit $200 million, up 63% year over year. The company booked more launches in the first quarter than all of last year. The backlog is over $2 billion, more than doubling year over year.

The company has benefited from launching small satellites and offering space system solutions. However, Rocket Lab is gearing up to significantly expand its revenue potential. The catalyst is the launch of Neutron -- a medium-lift rocket that will increase its payload capabilities. The development remains on schedule, which has helped the company win a multilaunch contract -- the largest in company history.

Assuming Rocket Lab remains on track to launch Neutron later this year, the company should scale into profitability. The stock trades at a high multiple of annual revenue, but relative to SpaceX's valuation, it might be a bargain for an investor with a 10-year investment horizon.

Redwire

Redwire is an under-the-radar stock that could offer substantial upside. It supplies space infrastructure -- including avionics, sensors, solar power solutions, and other spacecraft technologies -- and has supported SpaceX payload missions to the International Space Station.

The company is gaining traction. Redwire reported a record backlog of $498 million in the first quarter. Revenue jumped 58% year over year to $97 million, and management expects full-year revenue of $450 million to $500 million, up from $335 million in 2025.

Redwire is one of 14 companies eligible to compete for task orders under the Andromeda IDIQ contract vehicle, which supports the U.S. Space Force's efforts to track objects in geosynchronous orbit. That's a meaningful validation of Redwire's opportunity to scale as a spacecraft and space-systems provider for government and national security programs.

Redwire still needs to prove it can consistently execute and convert opportunities into sustained profitability. It's investing heavily for future growth, but for now, that spending is weighing on results -- the company posted a $300 million net loss over the trailing 12 months.

Still, if Redwire keeps winning contracts and expanding its backlog, the long-term upside could be significant. With a market cap of around $2.8 billion, it remains a small player in a space industry that is already massive and still growing.

Linde

Linde is a global industrial gas and engineering company generating nearly $35 billion in trailing revenue. It's not a high-growth story like Rocket Lab or Redwire, but it offers steady performance -- and it has direct ties to SpaceX.

Last year, Linde began construction on a $100 million air separation plant designed to produce liquid oxygen and nitrogen -- essential for rocket propulsion. The location is key: it's less than 50 miles from Starbase, Texas -- the home of SpaceX. That proximity hints at the level of demand Linde expects from the industry leader.

Momentum in Linde's aerospace business is building as investment increases across launches, vehicle manufacturing, and testing. In the first quarter, the company reported 8% year-over-year growth in total revenue. Still, management specifically noted that activity around space vehicle production, testing, and launch continues to show strong growth.

Aerospace is still under 5% of sales, but it could become a larger contributor as the frequency and size of space launches grow over the next decade. For investors seeking a durable business that will benefit directly from SpaceX's future activity, Linde fits the bill.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Redwire and Rocket Lab. The Motley Fool recommends Linde. The Motley Fool has a disclosure policy.