An exciting theme is emerging within the industrial sector as several small-cap stocks battle for dominance in the aerospace and defense industry, particularly in the space race. Space investors today have many choices, ranging from established defense titans to narrowly focused start-ups.
Morgan Stanley forecasts the space industry could reach $1 trillion by 2040, presenting immense growth potential. However, the path to success is filled with risks, as even the most advanced players face setbacks while bringing new, innovative products online.
While the number of customers in this space remains limited and government influence is still a significant factor, three small-cap aerospace and defense stocks stand out as they expand their operations in space. These stocks could be a good choice for investors seeking high growth and willing to embrace elevated risk.
Rocket Lab USA Inc. (NASDAQ: RKLB)
Rocket Lab has become one of the top-performing space stocks of 2024, recently reaching a 52-week high of $8.98 per share before pulling back slightly to $10.69. Over the previous year, the stock has rocketed over 121% and is up over 75% YTD. Rocket Lab's strength lies in its diversified revenue streams, with around 70% of ...
