5 Best Space Stocks To Buy According To Hedge Funds

In this article, we discuss the 5 best space stocks to buy according to hedge funds. If you want to read our detailed analysis of these stocks, go directly to the 11 Best Space Stocks To Buy According To Hedge Funds.

5. Northrop Grumman Corporation (NYSE:NOC)

Number of Hedge Fund Holders: 42  

Northrop Grumman Corporation (NYSE:NOC) is placed fifth on our list of 11 best space stocks to buy according to hedge funds. The firm operates in the aerospace and defense industry. It is headquartered in Virginia. 

On September 23, investment advisory Goldman Sachs upgraded Northrop Grumman Corporation (NYSE:NOC) stock to Neutral from Sell with a price target of $350, noting the firm was best positioned for growth in light of increased opportunities in the space realm. 

At the end of the second quarter of 2021, 42 hedge funds in the database of Insider Monkey held stakes worth $1 billion in Northrop Grumman Corporation (NYSE:NOC), up from 40 in the preceding quarter worth $1.5 billion. 

In its Q4 2020 investor letter, Artisan Partners Limited Partnership, an asset management firm, highlighted a few stocks and Northrop Grumman Corporation (NYSE:NOC) was one of them. Here is what the fund said:

“New purchases include Northrop Grumman. Northrop Grumman is a leader in manned aircraft, unmanned aircraft, spacecraft and missile-defense systems. We initiated a position in November 2020, as we believe the name is trading at an undeserved discount, despite having the potential to accelerate revenue over the next 24 months. In 2020, Northrup signed a contract to work with the US Air Force on their Ground Based Strategic Deterrent (GBSD) and B21 bomber. We believe the company’s portfolio is well-positioned with a highly desirable space segment business, significant classified content and GBSD driving growth. While the market has been focused on a “blue wave” risk to the defense budget, the industry is typically driven by threat assessment rather than budget constraints. If budget cuts were ever to affect the US Army, that customer represents less than 10% of the company’s revenue. This reinforces our belief that Northrop is well-positioned for the future and trades at an attractive valuation.”