10 Best Stocks to Buy Before SpaceX IPO

In this article, we will look at the 10 Best Stocks to Buy Before SpaceX IPO.

For years, SpaceX has been building an infrastructure that has redefined rocket launches, a global fleet of satellites via Starlink, and set up the U.S. government to potentially build the space force of the future. Amid all these incredible achievements, one thing hasn’t happened: access to company ownership via public markets. This is about to change.

SpaceX will make its IPO prospectus public by the end of May, with an IPO roadshow expected to begin in early June. The process culminating in the public trading of SpaceX stock is likely going to generate unprecedented retail investor interest. This will bring the space theme to the fore, and along with it, every other industry that is set to benefit from the success of SpaceX.

In a note to investors on April 12, Morgan Stanley analyst Adam Jonas wrote:

Space is back in a big way… [The SpaceX IPO represents] a combination of scientific advancements, geopolitics, and economics that have reignited investor interest in the space industry. It is a cross-sector ecosystem that will underpin the industry’s growth.

The ecosystem is the keyword here. Once the public is done with the IPO, attention will move to the ‘next SpaceX’ or its ‘competitors’. A higher valuation for SpaceX could well result in a re-rating for its competitors or companies involved in its supply chain.

To benefit from this, we decided to create a list of companies that will benefit from the event and are therefore the best stocks to buy before the SpaceX IPO.

Our Methodology

To come up with a list of companies that could be the best stocks to buy before the SpaceX IPO, we shortlisted companies in the same industry that are contributing to making space ambitions possible. We also added companies that are considered integral to the supply chain of firms like SpaceX, such as mining companies that provide the critical materials and gases that make rocket launches possible. We ensured that these companies are popular among US hedge funds and have reported recent newsworthy events. In the end, we ranked them in ascending order of the number of hedge funds holding them in their portfolios.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

Note: All share price data in the article is as per market close on April 23.

10. Teledyne Technologies Inc (NYSE:TDY)

Number of Hedge Fund Holders: 60

Teledyne Technologies Inc. (NYSE:TDY) is likely to be a beneficiary of the increasing focus on space travel after SpaceX’s IPO. The reason for this is the company’s strong position in space-grade electronics and instrumentation, as well as high-performance cameras critical in space missions and defense applications. The company just announced its Q1 2026 earnings and posted record quarterly sales of $1.56 billion, growing at a rate of 7.6% YoY. The company’s cash from operations was $234 million, while free cash flow stood at $204.3 million.

Going forward, management expects GAAP EPS of $4.825 at the midpoint in Q2. The earnings estimate for the full year is now set to $20.26 per share at the midpoint. Management expects sales to pick up in the second half of the year. The company received significant tax benefits in the first quarter, which are not expected to be there in the second. The company is receiving government support to increase capacity as demand for drones and counter-drones rises.

Teledyne Technologies Inc. provides aerospace electronics and instrumentation, digital imaging, and engineered systems that enable industrial growth. The company was founded in 1960 and is headquartered in Thousand Oaks, California.

9. ATI Inc. (NYSE:ATI)

Number of Hedge Fund Holders: 62

On April 10, financial services firm Susquehanna, reaffirming a positive rating on the ATI Inc. (NYSE:ATI) shares, raised its price target from $155 to $185. The firm’s upward price target revision suggests an additional 20.1% upside from the current levels. Analysts at Susquehanna believe there is a need to expand the Defense Industrial Base capacity due to the Middle East conflict. They are convinced that due to the current situation in the region, the Defence industry will grow over the next three to five years. After reviewing the revenue expectations for the first quarter, the firm updated its model for the Aerospace and Defense sector.

Similarly, on April 09, KeyBanc analyst Samuel McKinney raised the firm’s price target on ATI Inc. from $140 to $167 while maintaining an Overweight rating. After conducting a private survey, the firm expects higher future revenue due to increased activity in OEM. To keep up with high demand, suppliers are increasing inventory to prevent stock shortages. As already mentioned, there is significant growth potential for the defense industry due to the conflict in Iran, which may lead to higher oil prices. While geopolitical crises define a major part of ATI’s bull thesis, it also has a critical role to play in rocket launches and space systems thanks to its expertise in high-performance metals for extreme environments.

ATI Inc. operates as a seller and producer of specialty materials and complex components globally. The company operates through the Advanced Alloys & Solutions and High Performance Materials & Components segments. It was incorporated in 1996 and is based in Dallas, Texas.

8. Parker-Hannifin Corporation (NYSE:PH)

Number of Hedge Fund Holders: 64

On April 13, Citi raised its target price on Parker-Hannifin Corporation (NYSE:PH) shares from $1,092 to $1,137 while maintaining a Buy rating. The update came after the firm revised its expectations for the first quarter. Industry trends are improving steadily, which can result in increased revenue in Q1 of the fiscal year, according to Citi.

Similarly, on April 10, Stifel raised PH’s target price to $1,000 from $965. The firm surveyed 37 different local Park-Hannifin distributors, which generate an estimated 11% of Parker’s Diversified Industrial North America earnings. The analysts were satisfied with the responses and maintained the buy rating on Parker-Hannifin Corporation shares.

The stock is covered by 29 analysts on Wall Street, as per CNN’s compilation of analyst ratings. According to these ratings, the median price target of $1,090 reflects 10.9% upside in the stock. The highest price target on Wall Street is currently $1,168, which is close to Citi’s price target of $1,137.

Parker-Hannifin’s motion and control systems, fuel systems, fluid connectors and valves, and thermal management expertise will become increasingly relevant as rocket launches become more common. Post SpaceX IPO, this strength could help drive a potential re-rating of the stock through increased investor interest.

Parker-Hannifin Corporation operates as a seller and manufacturer of motion and control technologies and systems across a wide range of markets. These markets include in-plant and industrial equipment, energy, aerospace and defense, off-highway, HVAC and refrigeration, and transportation.

7. Woodward, Inc. (NASDAQ:WWD)

Number of Hedge Fund Holders: 69

On April 17, Ken Herbert, an analyst at RBC Capital, set a target price of $450 for Woodward, Inc. (NASDAQ:WWD). His price target suggests an additional upside of 21.6% from here on. Woodward is one of the top suppliers of control solutions for aerospace, defense, and industrial markets. RBC believes earnings will increase in the future due to an increased level of maintenance, repair, and overhaul activity. The main reason for the increase in earnings is the servicing and supply of aviation propulsion and geared turbofan engines.

An agreement between Ontic Engineering and Manufacturing and Woodward was reached on April 15, under which Woodward will sell the pilot control product line and services to Ontic Engineering. This includes pilot controls for commercial and defense applications such as throttle quadrant assemblies, passive side sticks, and rudder pedals, which are assembled at Woodward’s Illinois plant. Moreover, Woodward will be the sole supplier of certain components under a long-term supply agreement. The deal now just needs regulatory approval.

Woodward, Inc. operates in the aerospace industry, manufacturing and servicing control solutions for its global clientele. It operates in two segments, namely Aerospace and Industrial. The company has been operating since 1870 and is headquartered in Fort Collins, Colorado.

6. Howmet Aerospace Inc. (NYSE:HWM)

Number of Hedge Fund Holders: 71

On April 10, Charles Minervino, an analyst at Susquehanna, while maintaining a Buy rating, set a target price of $300 on Howmet Aerospace Inc. (NYSE:HWM) stock. The firm’s price target reflects a further 17% upside from the current levels. This upside is consistent with the median Wall Street analysts’ upside of 16.24% based on estimates of 27 analysts covering the stock.

Earlier, on April 6, Howmet Aerospace Inc. completed the acquisition of Consolidated Aerospace Manufacturing, LLC from Stanley Black & Decker. The deal was valued at about $1.8 billion in cash. With this acquisition, the company has expanded its portfolio of aerospace components, as well as strengthened its position in the aerospace supply chain. The acquisition brings in Consolidated Aerospace Manufacturing’s specialized expertise and established customer relationships. This further strengthens Howmet Aerospace’s overall capabilities in the industry.

As a supplier of aerospace components, including engine parts and high-performance metal parts, HWM’s business could come to the fore as a driver of the space revolution of the future. The company operates as an advanced engineered solutions provider and offers its solutions to the aerospace and transportation industries. It operates in the Engineered Structures, Engine Products, Forged Wheels, and Fastening Systems segments and is based in Pittsburgh, Pennsylvania.

5. The Goldman Sachs Group, Inc. (NYSE:GS)

Number of Hedge Fund Holders: 78

The Goldman Sachs Group, Inc. (NYSE:GS), as one of the advisors and underwriters of the upcoming SpaceX IPO, is a major beneficiary of the event. The IPO is expected to be worth $75 billion, valuing the company at around $1.75 trillion. On both metrics, it will be the biggest IPO ever.

The IPO is especially relevant because IPO activity slowed down in the second part of the previous quarter due to tensions in the Middle East. CEO David Solomon pointed this out on the earnings call, but was quick to add that the pipeline is strong.

There is no question that with the conflict in the Middle East, IPO activity slowed a little bit, particularly in March. I do think there’s a very full pipeline. And at the end of the day, equity markets have been extremely resilient and if that resilience continues, I do think you’ll see IPO activity accelerate again.

He also downplayed the future impact of global political issues on the upcoming major IPOs, adding that companies that require capital and are not directly affected by the crises will eventually come to market to raise funds.

While there could be, given the uncertainty of the war, some slowdown in IPO type monetization, that doesn’t mean that the sophisticated sponsors of the world aren’t thinking much like some of the well-capitalized corporates as to whether or not they can’t take advantage of some of the dislocation. So there’s multiple ways to think about it.

Despite headwinds in the previous quarter, Goldman comfortably beat first-quarter expectations, reporting EPS of $17.55 vs. $16.49 expected. The SpaceX IPO could add some positive sentiment to the stock, which, according to the management, is suffering under the negativity of the uncertain macro environment.

The Goldman Sachs Group, Inc. is one of the leading investment banks and financial services firms that specializes in global markets, asset and health management, and research services, among others. The company was founded by Marcus Goldman and is headquartered in New York City, United States.

4. Honeywell International Inc. (NASDAQ:HON)

Number of Hedge Fund Holders: 79

Honeywell International Inc. (NASDAQ:HON) reported its first-quarter fiscal 2026 earnings on April 23. The results were mixed, with the earnings exceeding expectations while revenue came in slightly below estimates. It delivered non-GAAP EPS of $2.45, surpassing forecasts by $0.13. Revenue for the quarter reached $9.14 billion, up 2.4% year-over-year; however, it missed expectations by $140 million. Despite this, demand remained steady, as orders increased by 7%. The company also shared a key strategic update, announcing plans to spin off its aerospace business. The transaction is expected to close in the third quarter on June 29, 2026.

For the full year 2026, Honeywell International Inc. kept its guidance unchanged. Sales are expected to range between $38.8 billion and $39.8 billion, slightly below the consensus estimate of $39.51 billion. Organic growth is projected at 3% to 6%, while segment margins are expected to range from 22.7% to 23.1%. Adjusted EPS is guided at $10.35 to $10.65, broadly in line with market expectations.

On April 13, under an agreement with engineering contractor Bechtel Energy Inc, Honeywell International Inc. will provide liquefied natural gas process technology and equipment for two additional production units at NextDecade’s Rio Grande LNG export facility in Bronxville, Texas. During the process, HON will provide a coil-wound heat exchanger and the C3MR liquefaction process for project Train 4 and Train 5, the same technology being used for the first three trains.

During the expansion process, Honeywell’s role is to provide the production units with key equipment for the liquefaction process, which results in enhancing plant efficiency and reliability. Although there is no indication regarding the financial terms of the agreement, the company claims that its systems are designed to facilitate continuous operation and reduce operating costs.

Honeywell International Inc. operates across multiple business areas, including industrial automation, aerospace technologies, building automation, and energy and sustainable solutions. The company operates across Europe, the United States, and other international markets.

3. Linde plc (NASDAQ:LIN)

Number of Hedge Fund Holders: 89

Linde plc (NASDAQ:LIN) has a critical role to play in the provision of rocket fuel. It offers liquid oxygen and liquid nitrogen, which are both components of rocket fuel. While the company isn’t a disclosed supplier of SpaceX, its critical role in rocket fuel supply could make it a hot property among retail investors.

The company’s price target was recently raised from $525 to $575 at Seaport Research. Before that, Patrick Cunningham of Citi also raised his price target from $545 to $580. The update came as the firm reviewed its coverage prior to Q1 earnings. Citi analysts believe Linde is best positioned to survive in the scenario of rising inflation as its earnings are relatively insulated from inflationary pressures. Since the company often signs long-term contracts in which costs are borne by the customer, who pays a fixed margin to Linde, it has no problem passing through inflationary impacts and protecting its profitability. The two recent upward price target revisions reflect this improving profitability in an otherwise tough economic environment.

Linde plc (NASDAQ:LIN) is an industrial gas company operating worldwide. The company provides atmospheric gases, such as nitrogen, oxygen, argon, and rare gases, as well as process gases, including helium, carbon monoxide, carbon dioxide, hydrogen, specialty gases, electronic gases, and acetylene.

2. Freeport-McMoRan Inc. (NYSE:FCX)

Number of Hedge Fund Holders: 91

Freeport-McMoRan Inc. (NYSE:FCX) is set to benefit from the SpaceX IPO. As a copper miner, the company could come to the fore not just as a copper miner but as a tech infrastructure play, set to benefit from the increasing usage of copper in satellites, ground stations, and global connectivity.

The firm is already gaining traction on Wall Street, with Wells Fargo raising its price target on the shares from $64 to $77. This upward revision comes on the expected mining disruptions and higher costs, which could send the price of copper up because of limited supply.

Earlier this month, on April 2, Goldman Sachs also initiated coverage on the stock with a price target of $70. The firm believes higher profitability is on the cards for the mining company because of macro and geopolitical tailwinds, structural deficits in the copper market, and higher long-term commodity prices. The SpaceX IPO and rising copper demand from satellite infrastructure could provide another tailwind to the stock’s performance, which has added one-third of its market cap in the last month alone.

Freeport-McMoRan Inc. is engaged in mining mineral properties across Indonesia, North America, and South America. The company mainly explores for gold, silver, copper, molybdenum, and other metals. It was founded in 1987 and is based in Phoenix, Arizona.

1. Amazon.com Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 381

On April 19, Barclays analysts backed Amazon to outperform other mega-cap tech stocks. In a note to analysts, the investment bank showed confidence in Amazon Web Services’ (AWS) ability to lead the company’s growth on the back of artificial intelligence tailwinds. This renewed optimism comes as AWS reported a $15 billion annualized revenue run rate based on its AI services.

The company’s grocery segment now has $150 billion in annual US gross sales, which makes it the second largest after Walmart. Despite Walmart’s dominance in physical stores, it is struggling to keep Amazon at bay. On April 19, the Financial Times reported that the company was experimenting with new delivery strategies to implement same-day delivery and compete with Amazon.

There is additional tailwind from the company’s microchip segment, which is now up to $20 billion in annualized revenue run rate, doubling in just three months. On top of all this, the SpaceX IPO is likely going to bring Amazon’s space ventures to the forefront, making it an attractive second scaled competitor. Jeff Bezos’ Project Kuiper is still in an early phase, expecting mass deployment of satellites this year with commercial services starting later this year or next year.

Amazon.com Inc. (NASDAQ:AMZN) operates across e-commerce, digital content, advertising, and cloud computing. Its online and offline stores offer both in-house and third-party products, while its Amazon Web Services (AWS) division runs one of the world’s largest data center networks.

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