Blackhole on your mind? These space stocks may interest you

Highlights

• The Event Horizon Telescope revealed the very first image of a new black hole identified as Sagittarius A* in the Milky Way on May 12.
• If this newly discovered black hole is on your mind, space stocks like MDA, Maxar Technologies, Magellan Aerospace and Virgin Galactic may interest you.
• Lockheed Martin signed a deal with Mercury Systems on May 10.

Ever since the Event Horizon Telescope (EHT) revealed the very first images of a mystifying black hole identified as Sagittarius A* located in our very own Milky Way galaxy, space and its mysteries have been the talk of the town. This is in fact said to be the EHT’s second breakthrough since unveiling the first-ever image of the black hole known as M87 in 2019.

If this newly discovered black hole is on your mind too, here are some space stocks that may interest you.

Also read: GOOS and BLX: These under-$40 midcap stocks should be on your radar

Let us dive in and get to know about them in detail.

1.     MDA Ltd (TSX:MDA)

MDA Ltd provides space robotics, geo-intelligence and satellite systems to the space industry worldwide. This Canadian space firm notably increased its backlog by 122 per cent year-over-year (YoY) to C$ 1.52 billion in Q1 FY2022. The small-cap firm saw its revenue surge by four per cent YoY to C$ 128.4 million with an EBITDA of C$ 35.6 million in the latest quarter. 

Stocks of MDA Ltd dipped by over 45 per cent in a year. But this space stock has climbed almost two per cent up from a 52-week low of C$ 8.17 (May 10), and as per EODHD/Others, its Relative Strength Index (RSI) value was 37.93 on Thursday, May 12.

 MDA Ltd (TSX:MDA)’s Q1 FY2022 results

2.     Maxar Technologies (TSX:MAXR)

Maxar Technologies is a Canadian mid-cap company that offers fully integrated space tech solutions to government and commercial clients. Maxar Technologies’ revenue rose to US$ 405 million in Q1 2022 compared to C$ 392 million a year earlier. Notably, the space tech company posted a net loss of C$ 7 million in the latest quarter, down from C$ 84 million incurred in Q1 2021. The space infrastructure company is also scheduled for a quarterly dividend payment of US$ 0.01 on June 30.

MAXR stock slipped by roughly four per cent year-to-date (YTD). From its 52-week high, MAXR stock plunged by over 31 per cent at the current price level. As per EODHD/Others, the space stock RSI value declined to 26.25 on May 12.

Also read: WED, NOU, OYL, SVA and EU: 5 Canadian smallcap stocks to buy under $10

3.     Magellan Aerospace Corporation (TSX: MAL)

Magellan Aerospace is also a Canadian small-cap player that sells aerospace components to the domestic and international markets. This space firm saw its revenue grow 6.5 per cent to C$ 187.7 million in Q1 2022. However, a smaller gross profit (of C$ 10.91 million) in Q1 2022 than (C$ 17.07) in Q1 2021 led to a net loss of C$ 2.02 million in the latest quarter, representing a YoY dip of 162.1 per cent.

Magellan Aerospace declared a quarterly dividend of C$ 0.08 per share, scheduled for June 30. MAL scrip lost over 20 per cent in the last 12 months and, on May 12, held an RSI value of 19.29 according to EODHD/Others.

4.     Virgin Galactic (NYSE: SPCE, SPCE: US)

Virgin Galactic has a cash position, including cash and cash equivalents, restricted cash and marketable securities of US$ 1.22 billion at the end of the first quarter of fiscal 2022. The space travel company contracted its net loss to US$ 93 million in Q1 FY2022 against C$ 130 million posted in Q1 2021.

The American space company saw its scrip plummet by nearly 64 per cent in a year. SPCE’s RSI value stood at 33.3 on May 12, according to EODHD/Others.

5.     Lockheed Martin Corporation (NYSE: LMT, LMT: US)

Lockheed Martin Corporation recently agreed to collaborate with Mercury Systems Inc (NASDAQ: MRCY, MRCY: US) to develop sensor processing techs that could provide multiple applications like radar signal processing and artificial intelligence (AI) in Switzerland.

Lockheed Martin will pay a quarterly dividend of US$ 2.80 per share on June 24. LMT stock zoomed by over 22 per cent YTD and noted an RSI value of 43.43.

Bottomline

The US Transportation Secretary Pete Buttigieg and his counterpart in the UK, Grant Shapps, established a space partnership on May 11 to make future spaceflight “cheaper and easier”, as per the UK’s government website. This new deal could also spurt some attention toward space stocks. 

Space commercialization is expanding swiftly and with rapid development in the industry, these space stocks can considerably gain in the future years. Some of these space stocks are known players in the domestic and international market and pay quarterly dividends, an additional income source for investors.

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.