History Says to Buy These Space Stocks in a Market Crash

Despite macroeconomic and geopolitical pressures, the stock market has been hot this year. The S&P 500 is up roughly 12% in 2026, and the Nasdaq Composite is up roughly 12.5%. Gains over the last five years look even more striking. Over the last half-decade, the S&P 500 and the Nasdaq Composite are up 71% and 74%, respectively.

On the other hand, the stock market has recently looked a bit wobbly as investors weigh risks from persistent inflation, high bond yields, elevated valuations, financing concerns for artificial intelligence companies, and other factors.

While it's impossible to say with any certainty that a market crash is near, a crash occurring at some point is an inevitability -- and buying these two space stocks below in a huge pullback for the market could be a great move.

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1. SpaceX

Space Exploration Technologies (NASDAQ: SPCX), or SpaceX, has one of the most growth-dependent valuation profiles of any company on the market. Following its $18.7 billion in sales last year, the average analyst target is calling for the business to post revenue of roughly $45 billion this year -- good for annual growth of roughly 141%.

SpaceX's current rate of sales growth is impressive, but it must also be viewed in the context of the company's roughly $1.92 trillion market capitalization. The company is trading at roughly 43 times this year's expected sales. The business is also currently operating at a loss, and capital expenditures are likely to continue surging as Elon Musk's company builds out its AI infrastructure, supports the Terafab chip manufacturing project, and pursues other projects.

The company is expanding rapidly and has promising avenues for long-term growth, but its current valuation profile carries significant risk. If a market crash were to occur and substantially reduce its valuation, I would seize the opportunity to build a position in a highly innovative company at a discount.

2. Rocket Lab

Rocket Lab is a leading player in rocket launch services, trailing only SpaceX in the category. Like SpaceX, Rocket Lab is growing quickly but trades at a valuation that also already prices in a lot of future wins.

Rocket Lab grew revenue by roughly 62% year over year in the second quarter to approximately $234 million. Meanwhile, the company has a market capitalization of roughly $30.4 billion and is valued at approximately 32 times this year's expected sales.

The company is also still posting sizable net losses and will likely continue to do so for the foreseeable future. A potential shift into profitability likely hinges on continued economies of scale that can improve gross margins and operating efficiency.

In other words, Rocket Lab has the kind of valuation profile that could put its stock at risk for a huge pullback in the event of a market crash. On the other hand, the company has already proven that its rockets provide a reliable, cost-effective way to get payloads into orbit -- and a dramatic contraction in its share price would be a buying opportunity.

Keith Noonan 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.