2 Space Stocks That Are Quietly Becoming Some of the Market's Best Opportunities

Investors are champing at the bit about SpaceX's upcoming initial public offering (IPO), but trying to get in early on Elon Musk's space exploration venture isn't the only way to profit from the "final frontier" of investing.

In fact, there are several space stocks currently trading in the public markets that, irrespective of SpaceX going public, have strong long-term prospects. That said, the SpaceX IPO itself could serve as an additional catalyst for these names, as increased attention toward the private space exploration sector may lead to a broad rally.

Among this group, the following two stand out as compelling space stock opportunities: AST SpaceMobile (NASDAQ: ASTS) and RocketLab (NASDAQ: RKLB).

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AST SpaceMobile is ready for liftoff, as commercialization commences

Space-based telecommunications is one of the strongest opportunities among satellite stocks and rocket stocks. While there may be numerous ways to invest, looking at companies that can deliver phone and internet service from outer space may be one of the best opportunities for immediate profitability.

AAST SpaceMobile is primarily focused on commercializing its space satellite-based cellular broadband network. The company has partnerships with several telecom companies, including AT&T, Verizon, and Vodafone.

AST SpaceMobile generated $4.4 million in revenue in 2024, growing that to $70.9 million in 2025. In the years ahead, however, revenue and profitability could increase exponentially. The consensus analyst forecast calls for the company to reach $777 million in revenue next year. Earnings per share (EPS) could reach nearly $4 by 2029. Execution risk notwithstanding, given this potential and additional upside from further commercialization efforts, AST SpaceMobile appears well worth the risk at current prices.

Rocket Lab is vying to become a space hardware leader

Rocket Lab may be best known for its launch services division, but the launching of commercial and government satellites represents just a portion of the company's overall business. Rocket Lab's ambitions may seem limited compared to those of SpaceX, but it's still looking to become a space hardware leader.

For years, sales for the company's space systems unit have dwarfed those of the launch unit. Both units continue to grow at a healthy clip. Last year, the launch segment grew by nearly 40%, while the space systems segment grew by just over 34%. However, when it comes to contract backlog, it's all about increasing orders for the company's spacecraft systems and satellite components.

At first glance, Rocket Lab's long-term plans may seem already highly factored into the stock's valuation. Despite not yet reaching profitability, the company has a $48 billion market cap and trades for over 73 times its trailing-12-month sales. Even so, analysts expect annualized sales growth to remain in the mid double digits during this year and the next. As sales scale up and Rocket Lab soars toward profitability, shares are likely to stay on their current upward trajectory.

Thomas Niel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AST SpaceMobile and Rocket Lab. The Motley Fool recommends Verizon Communications and Vodafone Group Public. The Motley Fool has a disclosure policy.