5 Best Space Stocks with High Upside Potential

2. Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is one of the best space stocks with high upside potential.

On March 23, 2026, Kratos said it had been selected by SKY Perfect JSAT as a strategic partner to develop and validate a 5G Non-Terrestrial Network, or NTN, satellite ground system for the Japanese operator’s Universal NTN initiative. The work centers on Kratos’ OpenSpace software-based architecture and supports early-stage implementation of software-defined 5G NTN ground infrastructure in the Asia-Pacific region.

The announcement matters because 5G NTN is increasingly being positioned as a way to integrate satellites more directly into mainstream mobile networks rather than keeping them as isolated infrastructure.

Kratos said its platform is designed to support interoperability, multi-vendor environments, and compatibility with existing VSAT systems, while allowing operators to move toward software-driven and more scalable ground systems. The company and SKY Perfect JSAT also said the effort will align with evolving 3GPP standards and focus first on validation and interoperability before broader deployment.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is a technology, products, systems, and software company serving defense, national security, and commercial markets.