Below we presented the list of 5 Best Space Stocks to Buy Now. For our detailed discussion and a more comprehensive list please see 16 Best Space Stocks to Buy Now.
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best hydrogen fuel cell stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind let’s take a look at the best space stocks to buy:
5. L3Harris (NYSE:LHX)
No of HFs: 42
Total Value of HF Holdings: $1.14 Billion
The fifth best space stock to buy is L3Harris. The company operated in every domain- air, land, sea, space, and cyber. They are responsible for delivering end-to-end solutions that meet customers’ mission-critical needs. Recently, the Missile Defense Agency awarded LHX a $121 million contract to build a prototype satellite that will track hypersonic weapons.
The top hedge fund holder of this stock is Ric Dillion’s Diamond Hill Capital, which had over $174 million invested in the stock at the end of September. An insider recently purchased 161 shares at around $191. The stock is down 0.5% since then.
Andrey Armyagov/Shutterstock.com
4. Heico Corporation (NYSE:HEI)
No of HFs: 43
Total Value of HF Holdings: $712 Million
HEI designs and produces jet engine and aircraft component replacement parts. The stock was mentioned as one of the 15 Best Undervalued Stocks to Buy Now. The top hedge fund holder of this stock is Robert Joseph Caruso’s Select Equity Group, which had over $88 million invested in the stock at the end of September. An insider recently purchased 978 shares at around $111. The stock is up more than 24% since then.
3. Lockheed Martin (NYSE:LMT)
No of HFs: 47
Total Value of HF Holdings: $1.66 Billion
Lockheed Martin was mentioned as of the Top 10 Sin Stocks to Buy Now. The top hedge fund holder of this stock is Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital, which had over $479 million, invested in the stock at the end of September. An insider recently purchased 1,354 shares at around $376. The stock is down 7% since then.
In an article, RiverPark Advisors, LLC mentioned that under Jim’s leadership the stock grew its market capitalization from $2 billion to $100 billion.
“Lockheed Martin is the world’s largest aerospace and defense contractor. With about 70% of its $60 billion in revenue from the U.S. government, the company is well positioned to benefit from U.S. defense budget growth, historically 5-6% per year, as well as increased global military spending. With a $144 billion backlog and deliveries forecast to reach 180 aircraft per year in 4- 5 years, we believe the company could grow at a significantly higher rate than overall defense budget growth over the next several years. The Street expects mid-single-digit revenue growth for the company, in-line with overall market growth. Due to its exposure to faster-growing programs, we believe the company can exceed that growth rate, and add margin expansion from increased scale. Further, strategic acquisitions, debt pay down, a 2% dividend yield, and continued share buybacks from $6 billion per year of free cash flow should lead to even greater shareholder returns.
We are also excited about LMT’s new – CEO James Taiclet – a military veteran and, over the previous 10 years the highly respected CEO of American Tower, a long-time Fund holding. Under Jim’s leadership, AMT grew its market capitalization from $2 billion to $100 billion and as both a shareholder and US citizen we look forward to him bringing his vast array of leadership skills to LMT.”
Pixabay/Public Domain
2. Raytheon Technologies, Corporation (NYSE:RTX)
No of HFs: 55
Total Value of HF Holdings: $2.98 Billion
RTX was mentioned in the Top 10 Stocks New Mets Owner Steve Cohen Was Buying in Q3. The top hedge fund holder of this stock is Eric W. Mandelbatt’s Soroban Capital Partners, which had over $801 million, invested in the stock at the end of September. An insider purchased 1,000 shares at around $52. The stock is up more than 34% since then.
Check out this article, where Third Point talked about the stock:
“We are pleased that the Board of Directors decided to split United Technologies Corp. (“UTC”) into three separate, focused companies. Unfortunately, the initial announcement caused confusion and created uncertainty about the free cash flow generation of newly-acquired Rockwell Collins. We believe management has largely rectified this by shortening the time to separation and providing better disclosure on Rockwell Collins’s free cash flow generation. We have urged management to quantify the elimination of stranded costs and explore a highly value-creating transaction for Carrier, and believe they are receptive to these suggestions. Despite the separation announcement, UTC’s sum-of-the-parts discount has continued to widen and the valuation gap versus UTC’s closest multi-industry peer, Honeywell International, has reached a new 10-year high. The coming separation will shine a greater spotlight on the large valuation gap to UTC’s pure-play peers. During the separation process, we expect the management team to highlight UTC’s asset quality and to increase transparency around Pratt & Whitney’s very significant multi-year inflection in free cash flow generation.
1. DISH Network Corporation (NASDAQ:DISH)
No of HFs: 60
Total Value of HF Holdings: $1.59 Billion
DISH is one of the top television providers in American television. Recently the company announced that they have reached an agreement with Nexstar Media Group to provide users the ability to tune in to Nexstar owned programs, including news, entertainment, and sports. Brian Neylon, Group President, DISH TV said,
“We’re pleased to have reached an agreement that benefits all parties, especially our customers. Thank you for your patience and understanding as we worked through the negotiations.”
The top hedge fund holder of this stock is Boykin Curry’s Eagle Capital Management, which had over $468 million, invested in the stock at the end of September. An insider recently purchased 300,000 shares at around $31. The stock is up 6% since then.
Please also see 15 Best Undervalued Stocks to Buy Now and Top 10 Artificial Intelligence Stocks To Buy Now.
