Why Redwire Stock Triumphed on Tuesday

Space exploration equipment supplier Redwire's (NYSE: RDW) stock defied gravity in the best possible sense on Tuesday. Its shares seemed to be strapped to a rocket, as they closed the day nearly 21% higher on news of the company's latest delivery. With that gain, they were practically in a different orbit than the S&P 500 index, which bumped higher by 2% on the day.

Next-generation brain in space

That morning, Redwire divulged it had delivered, to a business partner based in Italy, an onboard computer for one of the most important clients in the space exploration field. This is the European Space Agency (ESA), whose Comet Interceptor craft will use the device to assist it in its comet-analyzing endeavors.

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Redwire is not only the company securing delivery of the onboard computer; it is also its developer. In space, it will perform a variety of functions as the "brain" of Comet Interceptor, including communications and systems monitoring.

The device is currently on the premises of that partner, OHB Italia. It is scheduled to undergo integration and final acceptance review before being deployed to Comet Interceptor. The craft is slated for launch in 2029.

In its press release touting the computer's delivery, Redwire did not provide any financial details of the project.

An encouraging trajectory

Space stocks remain rather speculative investments, as they often trade on potential and/or ambition rather than actual deliverables. So when a company in the field actually ships or deploys a product, investors get understandably excited about the news.

Personally, I'd be a bit more cautious, preferring to wait for details of the financial impact of such work. Still, this news makes Redwire a stock to keep an eye on in the space space.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.