2 Space Stocks Down More Than 50% That Could Be the Best Buys of Q4

AST SpaceMobile (NASDAQ: ASTS) and Rocket Lab (NASDAQ: RKLB) are both down more than 50% from their highs. That said, their ambitious growth plans could make them two of the best space stocks to buy in the fourth quarter. Both have a lot to look forward to, starting with AST SpaceMobile's planned initial coverage before year-end. Let's dive in.

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Commercial deployment is getting closer for AST SpaceMobile

AST has taken a beating, falling roughly 69% from its May 2026 peak as investors reassessed its timeline and competitive threats. But the sell-off hasn't erased the opportunity. The company is moving closer to commercial service, and the next few months could determine whether its technology can turn into a viable business.

One of the biggest developments is its progress toward launching its space-based cellular broadband service. Specifically, Bank of America expects AST to begin initial intermittent coverage in the U.S., Canada, Japan, the U.K., and Saudi Arabia before the end of 2026. That's an important catalyst, and it will help investors assess whether the company can deliver on its roadmap.

AST also has a competitive advantage in distribution. Instead of building a global wireless business on its own, it's working with established mobile network operators that already have customer relationships.

Today, the company has partnerships with more than 60 of these operators, including AT&T, Verizon Communications, and Rakuten, collectively serving over 3 billion subscribers.

Expanding its satellite constellation is also an important catalyst. The company reported launching 13 satellites into orbit in August and has continued preparing additional spacecraft for deployment. Progress on these launches can help rebuild investor confidence after the sell-off, especially if it successfully supports the initial service rollout.

Still, the company faces risks around execution, competition, and ongoing funding needs. But at a price-to-sales (P/S) ratio of 98 times, the market is still optimistic about its growth potential.

Building a full-service space company at Rocket Lab

Meanwhile, another stock offers investors exposure to the fast-growing space economy. Rocket Lab's shares have suffered a sharp pullback, falling more than 60% from its May 2026 record high. However, unlike many speculative stocks, the company already has an operating business that generates revenue from established launch services and space systems.

The company's space business is becoming a major growth driver, supplying spacecraft and satellite components that customers need to launch missions in space. In the second quarter of 2026, Rocket Lab reported record quarterly revenue of around $234 million, up 62% year over year. Plus, its backlog reached a record $2.4 billion, up 137%.

Looking ahead, its third-quarter results are expected on Nov. 9, allowing investors to assess whether the company can continue to maintain this momentum.

Rocket Lab also announced an agreement to acquire Iridium Communications to expand its presence in satellite communications. If completed, the deal could give the company a broader role across the supply chain and open up new opportunities in communications, defense, and other space-based applications.

At the same time, the inaugural launch of its medium-lift Neutron rocket has been pushed to 2027. Still, any progress that strengthens confidence in the updated timeline could serve as a key catalyst for investors. The risk now is that any further delay could delay revenue opportunities and increase development costs, potentially necessitating additional capital raises.

However, analysts are still optimistic about the stock, with target prices suggesting potential upside of between 10% and 157%. The market also demands strong revenue growth, with the stock trading at about 41 times sales.

Two beaten-down space stocks worth watching in Q4

AST and Rocket Lab have seen sharp pullbacks, but they could offer investors a chance to buy into their long-term growth at a lower price. Both offer compelling ways to invest in the future of space, spanning satellite-powered connectivity, launch services, and space systems.

Of the two, Rocket Lab might suit cautious investors, since it already has an operating business. AST SpaceMobile is the high-risk, high-reward pick, with its commercial service still ahead. Both face execution risks, but if they deliver on their ambitious plans, their recent pullbacks could make Q4 an attractive entry point for long-term investors.

Bank of America is an advertising partner of Motley Fool Money. Rick Orford 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. The Motley Fool has a disclosure policy.