The space technology market, including satellite manufacturing and operations, launch services, and more, is exhibiting strong growth prospects owing to technological advancements, increasing private sector participation, and growing government initiatives.

Amid this backdrop, investors could scoop up shares of fundamentally stable space-focused stocks, Lockheed Martin Corporation (LMT), Globalstar, Inc. (GSAT), and Gilat Satellite Networks Ltd. (GILT), that hold immense growth potential.

The “New Space” era marks a revolutionary chapter in the space industry, fueled by commercialization, private-sector engagement, and technological breakthroughs. Low Earth Orbit (LEO) satellites are emerging as game-changers, offering a compelling alternative to fiber-optic networks and playing a critical role in supporting global connectivity and the widespread rollout of 5G technologies.

As connectivity becomes a cornerstone of modern innovation, these satellites are unlocking new opportunities for industries. Simultaneously, geopolitical dynamics, such as escalating U.S.-China tensions, are driving increased funding into the space sector.

In 2024 alone, the industry attracted $8.6 billion in investments from private and government organizations, emphasizing its growing strategic importance. This surge in funding reflects a broader shift towards private-sector-led, cost-effective solutions, fostering advancements in space technology across communication, exploration, and defense.

The U.S. Department of Defense’s fiscal 2025 budget request of $29.6 billion for its Space Force highlights this emphasis, with government and private enterprises aligning to ensure a robust space infrastructure.

Looking ahead, according to a report by Grand View Research, the space technology market is forecasted to reach $731.8 billion by 2030, growing at a CAGR of 7.5%.

Now, let us dive deep into the fundamentals of three space-focused stocks, starting with #3.

Stock #3: Lockheed Martin Corporation (LMT)

LMT is a security and aerospace company that is involved in research, design, development, manufacture, integration, and sustainment of technology systems, products, and services. The company has four segments: Aeronautics; Missiles and Fire Control; Rotary and Mission Systems; and Space.

On January 22, 2025, LMT secured a contract worth $270 million from the U.S. Air Force to integrate a system of next-generation infrared defensive sensors on the F-22 Raptor. The contract would enhance LMT’s presence in the defense sector and boost the company’s top-line growth.

On January 16, 2025, LMT announced the approval of the use of synthetic aviation turbine fuels in the F-35 Lightning II. The new fuel sources are expected to enhance readiness by reducing reliance on the extended supply chain and maintaining operational excellence.

For the fiscal 2024 third quarter that ended September 29, LMT’s net sales increased 1.4% year-over-year to $17.10 billion. Its operating profit grew 4.8% from the year-ago value to $2.14 billion. Additionally, the company’s net earnings came in at $1.62 billion, while its EPS rose 1% from the prior year’s quarter to $6.80.

Analysts expect LMT’s revenue and EPS for the fiscal 2025 first quarter (ending in March) to increase 2.7% and 2.5% year-over-year to $17.67 billion and $6.49, respectively. Moreover, the company has surpassed consensus EPS estimates in all four trailing quarters, which is impressive.

LMT’s shares surged 9.2% over the past nine months and 17.2% over the past year to close the last trading session at $503.69.

LMT’s POWR Ratings reflect its sound fundamentals. The stock has an overall rating of B, translating to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

LMT has an A grade for Momentum and a B for Value and Quality. Within the Air/Defense Services industry, LMT is ranked #4 out of 70 stocks.

To access LMT’s Sentiment, Growth, and Stability ratings, click here.

Stock #2: Globalstar, Inc. (GSAT)

GSAT is a global provider of mobile satellite services. It offers duplex two-way voice and data products and equipment for remote business continuity, recreational usage, safety, emergency preparedness and response, and other applications.

On January 7, 2025, GSAT announced a strategic partnership with Peiker Holding Gmbh, an internationally oriented family business, to bring satellite-based emergency services and telematics capabilities to the automotive industry.

The partnership could enhance the company’s market presence in the automotive industry through its satellite-based emergency services and IoT connectivity offerings.

On December 18, 2024, GSAT announced a collaboration agreement with Hawk Networks, a telecommunications company. The collaboration is aimed at simplifying access to valuable licensed spectrum by bundling it with core network components and other essential infrastructure and driving user efficiency and growth.

For the fiscal 2024 third quarter that ended September 30, GSAT’s total revenue increased 25.4% year-over-year to $72.31 million. Its income from operations rose 367.7% from the year-ago value to $9.43 million. Plus, the company’s net income amounted to $9.93 million, compared to a net loss of $6.17 million in the previous year’s quarter.

Street expects GSAT’s revenue for the fiscal 2025 first quarter (ending in March) to increase 13.6% year-over-year to $64.18 million. Additionally, the company has surpassed consensus revenue estimates in all four trailing quarters.

Shares of GSAT surged 76.7% over the past three months to close the last trading session at $1.82.

GSAT’s fundamentals are mirrored in its POWR Ratings. GSAT has a B grade for Growth, Sentiment and Momentum.

Within the Telecom – Domestic industry, GSAT is ranked #12 out of 19 stocks.

In addition to the POWR Rating highlighted above, you can check GSAT’s ratings for Value, Stability, and Quality here.

Stock #1: Gilat Satellite Networks Ltd. (GILT)

Headquartered in Petah Tikva, Israel, GILT provides satellite-based broadband communication solutions. The company has three segments: Satellite Networks; Integrated Solutions; and Network Infrastructure and Services. Its portfolio includes cloud-based satellite network platforms, amplifiers, modems, transceivers, and more.

On January 21, 2025, GSAT’s wholly owned US-based subsidiary, Gilat DataPath, secured contracts totaling more than $5 million from the U.S. Department of Defense (DoD) and other international Defense Forces.

These contracts involve supplying DKET terminals and offering Field Service Representative (FSR) support, which will be deployed globally within the next year. This achievement underscores GSAT’s growing influence and capability in serving critical defense communication needs worldwide.

On January 7, 2025, GSAT announced the acquisition of Stellar Blu Solutions LLC, a U.S.-based provider of next-generation SATCOM terminal solutions. The acquisition could enhance the company’s commercial and business aviation operations and bring in stronger cash flows.

For the fiscal 2024 third quarter that ended September 30, GILT’s revenues increased 16.7% year-over-year to $74.61 million. The company’s non-GAAP operating income grew 22.6% from the prior year’s quarter to $8.27 million.

Additionally, non-GAAP net income and non-GAAP EPS increased 19.4% and 16.7% year-over-year to $8.14 million and $0.14, respectively.

The consensus revenue and EPS estimates of $309.73 million and $0.42 for the fiscal year that ended December 2024 exhibit a year-over-year rise of 16.4% and 2.4%, respectively.

GILT’s shares have surged 37.6% over the past three months and 44% over the past six months to close the last trading session at $6.77.

GILT’s POWR Ratings reflect its strong prospects. The stock has an overall rating of A, equating to a Strong Buy in our proprietary rating system.

GILT has an A grade for Sentiment and a B for Growth, Value, Momentum, and Quality. It has topped the B-rated 46-stock Technology – Communication/Networking industry.

Click here to access GILT’s Stability rating.

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LMT shares were unchanged in premarket trading Tuesday. Year-to-date, LMT has gained 3.65%, versus a 2.27% rise in the benchmark S&P 500 index during the same period.

About the Author: Aritra_Gangopadhyay

Aritra is a financial journalist dedicated to breaking down complex financial topics into simple, actionable insights. Holding a Master’s degree in Economics, he uses his analytical expertise to help investors uncover unique opportunities for long-term success. More...

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