Just 1 Space Stock to Buy in April

Space stocks are on a tear, and their prices are out of this world.

Thanks to the twin catalysts of Artemis II successfully circling the moon, then returning to deliver its astronauts back to Earth unscathed, and the confirmation that SpaceX has filed its IPO prospectus and will hold an initial public offering this summer, investor enthusiasm for space stocks has never been higher.

Shares of unprofitable space stocks I've previously endorsed as speculative buys when their valuations were in single digits now trade well into the double digits -- Firefly Aerospace (NASDAQ: FLY) costs 37 times trailing sales, Planet Labs (NYSE: PL) 40. Space stocks expected to be profitable next year, which can be valued at least on forward earnings, carry even more extreme valuations. Rocket Lab (NASDAQ: RKLB), for example, now costs nearly 1,600 times forward earnings.

But there's at least one space stock out there that might still be worth buying.

Image source: Getty Images.

Introducing Redwire

It's been a couple of weeks now since I last argued that Redwire (NYSE: RDW), at 5.7 times trailing sales, is a safer buy than the better-known Rocket Lab at 73 times sales. But allow me to refresh your memory.

While Rocket Lab and its peers have been winning all the headlines with repeated rocket launches clearly visible from the ground, Redwire has quietly built its business doing things out of sight of Earthlings -- manufacturing equipment that gets to work only once it's actually in space.

Redwire's products include roll-out solar arrays with large areas of power collection for spacecraft in orbit but tiny footprints predeployment, when first tucked into rocket nosecones for launch. The company builds space station docking systems, space-rated cameras for use on spacecraft and space stations, "star tracker" sensors used for navigation, and robotic arms for performing exterior work remotely. Redwire even builds entire satellite systems, including Mako, Phantom, SabreSat, and Thresher.

Redwire is a specialist in 3-D printing on orbiting space stations, making both standard 3-D printers that can manufacture tools and replacement parts in orbit and experimental 3-D bioprinters that can "print" living tissue for use in medical research.

Below the radar of many investors, Redwire's varied space infrastructure businesses have quietly grown 370% over the last five years.

Redwire evolves

In early 2025, Redwire made a major change to its business model, announcing it's entering the red-hot military drones sector with the $925 million purchase of Edge Autonomy. On the one hand, this deal added Edge Penguin and Stalker long-range drones to Redwire's arsenal of products. It's more than just an obvious play on drone demand in Ukraine and the Middle East, however. Analysts at Payload Space surmised that what Redwire may really be doing is marrying its capabilities in satellite communications with a drone fleet on Earth -- with the satellites communicating with and controlling the drones.

In other words, this wasn't just an acquisition. It was a product-synergy creation that could help Redwire accelerate sales even further.

What's next for Redwire

It remains to be seen how well this plan will work. On the one hand, analysts polled by S&P Global Market Intelligence forecast that Redwire will grow its combined sales by 41% to $472 million in 2026 -- 4 times the 2025 growth rate. On the other hand, at the time of the acquisition, Redwire itself predicted that buying Edge Autonomy would grow its annual sales to between $535 million and $605 million in 2025.

The actual number was just $335 million.

So Redwire is a little bit behind schedule capitalizing on its Edge Autonomy buy. (In fact, analysts who follow the company don't expect Redwire to pass $535 million in revenue until 2027, two years behind schedule.)

Disappointing? No doubt. But what's also beyond doubt is that Redwire's 6x sales valuation makes it arguably the cheapest stock in the space sector today. If management can deliver on its Edge promises -- even if it delivers a bit late -- Redwire just might be the space stock bargain you've been looking for.

Rich Smith has positions in Rocket Lab. The Motley Fool has positions in and recommends Planet Labs PBC, Redwire, and Rocket Lab. The Motley Fool has a disclosure policy.