The United States Space Force recently unveiled its logo, artfully placed on a large flag held behind President Trump as he talked about our nation’s aspirations for space dominance and the much-anticipated super duper missile. There is certainly a comedic element to this missile’s moniker yet making money from the Space Force is not a laughing matter. Space mining and warfare will soon be big business.
2020 marks the year in which America sets its sights on the stars, hoping to colonize planets and mine precious metals from asteroids. Three publicly traded companies are positioned to benefit from President Trump’s Space Force program: Honeywell International (HON), Northrop Grumman (NOC) and Lockheed Martin (LMT).
Honeywell International (HON)
As soon as Space Force was announced, the stock pickers began analyzing the market for potential benefactors of the program. HON emerged at the forefront of the pack thanks to its manned space flight and thermal control solutions. HON has worked hand-in-hand with NASA since the beginning of human spaceflight.
With $52 billion in revenue, an $86 billion market cap and considerable momentum stemming from the Space Force, HON’s future looks quite bright. The POWR Ratings have HON rated 5th of 38 stocks in the Industrial – Manufacturing sector.
All in all, 10 analysts rate HON a Buy while four recommend holding and none advise selling. With an average analyst price target right around $150, HON still has some room for upward movement before anyone can argue it might be overvalued.
Furthermore, HON is still more than $30 below its 52-week high of $184.06 so don’t be afraid to hop on board and ride this rocket to the stars and beyond. Buy HON, hold it for the foreseeable future and the stock should increase as more money is poured into the Space Force program.
Northrop Grumman (NOC)
It is going to take a wide array of integrated solutions, innovative services and seemingly futuristic products in order to reign supreme in space. NOC will lead the way. The company’s technologically advanced products, mission systems and solutions are applicable to aerospace as well as electronics and even shipbuilding.
Though NOC has plenty of customers across the globe, it will play a key role in facilitating America’s militarization of space. From manned aircraft to high energy laser systems, autonomous systems, spacecraft and beyond, NOC’s strengths align perfectly with the goals of Space Force. In other words, NOC will be one of the biggest winners of this new defense program.
NOC recently boosted its quarterly dividend by 10%. The POWR Ratings for the stock are somewhat favorable: a B Peer Grade and a rank of 14 out of 65 stocks in the Air/Defense Services sector. Look for NOC to return toward its pre-covid level of $379 as the year progresses. In fact, the stock might even approach the average analyst price target for the stock of $384.57.
Lockheed Martin (LMT)
The Space Force will certainly boost a number of stocks in the defense and space sectors yet LMT might enjoy the largest uptick in business thanks to this newly created program. LMT provides the United States government along with the Department of Defense and NASA with satellites, rocket launch systems, ground systems and more. This means LMT will play an important role in the success of the Space Force.
LMT also has a joint venture with Boeing (BA) referred to as the United Launch Alliance. This venture will work with the military to help rockets carry payloads into orbit. LMT has raised its dividend five times across the past half-decade.
The POWR Ratings have LMT rated 13th of 65 stocks in the Air/Defense Services space. LMT has a B Peer Grade in the POWR Components. With an average analyst price target of $417, LMT has plenty of room to move upward. LMT might even return to its pre-coronavirus trading level of $435 by year’s end.
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About the Author: Patrick Ryan
Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More…