In this article, we will explore the 7 Best Space Stocks with High Upside Potential.
The space industry continues to grow, helped in part by lower launch costs and rising commercial activity. Space Foundation said the global space economy reached $613 billion in 2024, up 7.8% from the prior year, with commercial activity accounting for 78% of the total. That points to steady expansion in launch, satellite services, and related private-sector activity.
A major structural change has been the decline in the cost of reaching orbit. A NASA paper using advertised Falcon 9 pricing estimated launch cost at about $2,720 per kilogram to low Earth orbit, compared with roughly $54,500 per kilogram for the Space Shuttle. SpaceX’s current rideshare page also advertises missions starting at $350,000 for 50 kilograms to sun-synchronous orbit, with additional mass priced at $7,000 per kilogram. Those figures do not capture every mission type, but they do show why smaller payloads and more frequent launches have become more commercially viable.
SpaceX is also drawing attention on the capital-markets side. Reuters reported on April 1, 2026 that the company had confidentially filed for a U.S. IPO, and reported on April 2 that it was targeting a valuation above $2 trillion. The listing is not certain, but it is now a live market event rather than a long-term possibility.
Methodology
We used screeners to identify pure-play and pure-play adjacent space stocks with an average upside potential of at least 15%, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
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).
7. Rocket Lab Corporation (NASDAQ:RKLB)
Rocket Lab Corporation (NASDAQ:RKLB) is one of the best space stocks with high upside potential.
On March 30, 2026, Rocket Lab said it had received regulatory approval to acquire Mynaric AG, a German supplier of laser optical communications terminals for air, space, and mobile applications. The clearance came from Germany’s Federal Ministry for Economic Affairs and Energy, and Rocket Lab said it expects the deal to close in April.
Rocket Lab framed the deal as a way to bring satellite laser communications in-house and strengthen its ability to serve government, national security, and commercial customers. The company said laser communications are becoming increasingly important for satellite constellations because they offer higher data rates, stronger security, scalability, and more efficient spectrum use than traditional radio-frequency systems. It also argued that supply has been a bottleneck, with such products not readily available in high volumes at affordable prices.
The acquisition would also give Rocket Lab its first European footprint, with Mynaric set to remain headquartered in Munich after closing. Rocket Lab added that Mynaric already supplies CONDOR Mk3 optical terminals for its $1.3 billion in Space Development Agency satellite contracts.
Rocket Lab Corporation is a space company that provides launch services, spacecraft, payloads, and satellite components for commercial, government, and national security customers.
6. The Boeing Company (NYSE:BA)
The Boeing Company (NYSE:BA) is one of the best space stocks with high upside potential.
On April 1, 2026, Wells Fargo initiated coverage of Boeing with an Overweight rating and a $250 price target. The firm said Boeing could see a sharp free cash flow recovery as production normalizes, with upside tied to higher 737 MAX and 787 output as well as a large working-capital opportunity. Wells Fargo based its target on a 20x multiple of its 2028 free cash flow forecast. The note also said the 777X program remains a near-term drag on free cash flow, but that pressure could ease as production efficiency improves and rates move higher later in the decade.
The call added a constructive Wall Street view to Boeing at the start of April, with the target implying notable upside from where the stock had been trading at the time. Public summaries of the note framed the thesis around a production-led cash flow turnaround rather than a near-term earnings story.
The Boeing Company is a leading global aerospace company that develops, manufactures, and services commercial airplanes, defense products, and space systems for customers in more than 150 countries.
5. Redwire Corporation (NYSE:RDW)
Redwire Corporation (NYSE:RDW) is one of the best space stocks with high upside potential.
On April 2, 2026, Redwire said it had been awarded a contract to develop a quantum-secure satellite for the European Space Agency’s Quantum Key Distribution Satellite, or QKDSat, under ESA’s ARTES Partnership Projects program. The company said it will manufacture and deliver its European-built Hammerhead spacecraft, which will carry the quantum key distribution payload along with Redwire’s ADPMS-3 avionics suite.
Redwire said the project is part of a multi-country consortium led by Honeywell Aerospace’s UK team and is aimed at enabling satellite-based quantum key distribution to protect communications against data breaches.
Management framed the award as a step toward more resilient long-distance secure communications, noting that satellite quantum key distribution can overcome the distance limits of terrestrial fiber-based quantum networks. ESA also described the program as important for secure commercial and government communications across member states amid rising cyber threats.
Redwire Corporation is an integrated aerospace and defense company focused on advanced technologies spanning space infrastructure, autonomous systems, and multi-domain operations.
4. Gilat Satellite Networks Ltd. (NASDAQ:GILT)
Gilat Satellite Networks Ltd. (NASDAQ:GILT) is one of the best space stocks with high upside potential.
On March 10, 2026, Gilat said its Gilat DataPath unit received about $6 million in new orders to continue providing field and technical services that support U.S. Army global communications operations over the next six months.
The company said the award extends its work with the Army’s Program Executive Office for Command, Control and Communications Networks under the GTACS II contract vehicle, marking another step in what it described as a multi-year engagement. Gilat framed the new orders as a sign of continued confidence in its ability to support mission readiness and deliver resilient communications capabilities for defense operations.
The update adds to Gilat’s recent defense- and connectivity-related activity and highlights its exposure to military satellite communications support, an area where contract continuity can matter as much as headline deal size. In this case, the award was not pitched as a one-off win but as a continuation of ongoing support work for a major U.S. military customer.
Gilat Satellite Networks Ltd. is a satellite networking technology company that provides equipment, software, and services for broadband satellite communications across commercial and defense markets.
3. Virgin Galactic Holdings, Inc. (NYSE:SPCE)
Virgin Galactic Holdings, Inc. (NYSE:SPCE) is one of the best space stocks with high upside potential.
On April 2, 2026, Jefferies lowered its price target on Virgin Galactic to $5 from $8 while maintaining a Buy rating. The firm tied the change mainly to cash flow timing rather than a break in the company’s operating roadmap. Jefferies said Virgin Galactic’s free cash flow path is becoming clearer and based its revised target on a discounted cash flow analysis, while still arguing that operational milestones could unlock value.
The note followed the company’s fourth-quarter update, which Jefferies said showed progress on Virgin Galactic’s first spaceship as it enters a ground test phase targeted to begin in April 2026. Test flights are expected in the third quarter, with first commercial flights projected in the fourth quarter. Jefferies also noted that Virgin Galactic reopened sales in the first quarter of 2026, has 675 customers in its backlog, and held $338 million in cash, which it said could bridge the company to operating cash flow positivity in 2027 as flight cadence builds.
Virgin Galactic Holdings, Inc. is a spaceflight company developing suborbital flights for private astronauts and research customers through its commercial spaceline platform.
2. Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)
Kratos Defense & Security Solutions, Inc. 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. is a technology, products, systems, and software company serving defense, national security, and commercial markets.
1. Voyager Technologies, Inc. (NYSE:VOYG)
Voyager Technologies, Inc. (NYSE:VOYG) is one of the best space stocks with high upside potential.
On March 30, 2026, Voyager said it had won a mission management contract from Icarus Robotics to support an in-space demonstration of Icarus’ free-flying robotic platform, Joyride, aboard the International Space Station. The announcement points to continued commercial demand for low Earth orbit testing and validation, particularly for robotics systems aimed at future station operations.
Under the agreement, Voyager will handle payload integration, safety certification, launch coordination, on-orbit operations planning, and real-time mission execution support. The company said its space station heritage includes more than 1,400 missions managed across government and commercial customers. The Joyride demonstration is scheduled for early 2027 and will focus on autonomous navigation, maneuverability, and operational performance in an actual space station environment.
The contract also gives investors a fresh example of Voyager’s “mission management as a service” model, which is built around helping customers move experimental technologies into flight-tested systems. For a younger space robotics company like Icarus, that kind of operational support can shorten the path from concept to demonstrated capability in orbit.
Voyager Technologies, Inc. is a defense and space technology company that provides mission-critical products and services spanning space infrastructure, mission services, and national security-related systems.
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