Here's What $1,000 in Each of These 3 Space Stocks Could Be Worth by 2030

Many smaller space stocks stumbled this year for two reasons. First, SpaceX 's (SPCX -0.59%) IPO in June drew many investors away from its smaller competitors. Second, the Fed's interest rate hike in September -- its first in three years -- depressed growth stocks.

But after that sell-off, three space stocks -- Rocket Lab (RKLB -3.96%), AST SpaceMobile (ASTS -5.51%), and Redwire (RDW -3.74%) -- could be worth considering. Let's see how much $1,000 invested in these three stocks could be worth by 2030.

Image source: Getty Images

What do these three companies do?

Rocket Lab produces reusable orbital rockets. It's launched its flagship rocket, the Electron, 99 times to deploy over 272 satellites, and it plans to launch its next rocket -- the large Neutron -- in 2027. It also produces satellite components, solar panels, and complete spacecraft buses, and it's in the process of acquiring the satellite network companyIridium .

AST SpaceMobile builds large low Earth orbit (LEO) satellite arrays for cellular connectivity. It helps wireless carriers, such as AT&T and Verizon , expand their networks to remote areas that terrestrial cellular towers can't reach. It's launched 13 of its BlueBird satellites so far, but it can't generate stable recurring commercial revenue until it expands that constellation to more than 45 satellites. It expects to reach that milestone by next year, and eventually expand its constellation to 248 satellites over the long term.

Redwire develops navigation, power, and 3D-printing components for satellites, space stations, and other spacecraft. It also produces military drones and custom components for missile defense and military communications systems. In the five years since its market debut, Redwire has struggled with negative cost revisions on its fixed-price contracts, delayed government deals, and expensive, dilutive acquisitions. But over the next few years, its business could stabilize as the space industry matures and economies of scale kick in.

How fast are these three companies growing?

Rocket Lab, AST, and Redwire all have plenty of irons in the fire. Over the next few years, Rocket Lab will ramp up the production of its Neutron rockets and expand its other businesses to become an end-to-end space services company. AST is already working with dozens of carriers to reach over 3 billion wireless subscribers worldwide, and Redwire will produce more components for orbital data centers, satellites, drones, and new lunar missions.

Here's how fast they could grow over the next three years, according to analysts' estimates, and how their market caps compare to those projected growth rates.

Data source: Marketscreener.

Could all three stocks deliver multibagger gains?

We should take those estimates with a grain of salt, but two of these three stocks could generate multibagger gains through the end of the decade.

If Rocket Lab matches analysts' estimates, grows its revenue at a 20% CAGR through 2030, and trades at 20 times its current year's sales, its market cap could rise 25% by the final year.

But if AST and Redwire also match analysts' estimates through 2028, grow their revenues 20% in both 2029 and 2030, and trade at 20 times their current-year sales by the final year, their market caps could rise 4.6x and 9.3x, respectively, from their current levels.

Investors should be cautious with each of these companies, since their lack of near-term profits will make them easy targets for short-sellers in the next market downturn. But if you can stomach the near-term volatility, these oft-overlooked space stocks deserve a closer look.

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