Space ventures promising, as Thales, Airbus, Amazon, BAE Systems leap into the stocks market with confidence!
The Bold Frontier: Aerospace, Defense, and Space Exploration - A Technological Powerhouse
Getty Images By Nicolas Gallant Economic Journalist, Financial Analyst, Technical Analyst Published on
The realm of aerospace, defense, and space exploration forms a significant triad of technological prowess. Two primary pillars support this alliance. On one side, "aerospace encompasses the design and manufacture of aircraft, which serves as a base for both defense and space: propulsion systems, advanced materials, and navigation software are developed in civil aerospace and adapted for militaristic and stargazing purposes", explains Damien Ledda, Galilee AM's management director.
On the flip side, military aerospace lies at the heart of modern defense capabilities and protects the sovereignty of nations. "With air superiority being a strategic cornerstone for armed forces, numerous military breakthroughs find their way into civilian applications, such as GPS and composite materials across various industries", the expert continues.
In the current climate of escalating geopolitical tensions, defense spending in Europe significantly rises.
The Battle for the Cosmos: A New Age in Space Exploration
The logical progression of aerospace leads to the conquest of space, catering to humanity's unquenchable thirst for discovery and domination. Excitingly, innovation propels this thematic pursuit, with launchers sharing technologies with supersonic aircraft, mastery of high-altitude flight stemming from aerospace and military research, and collaboration between space agencies and global industrial titans including Airbus, Safran, and Thales (to name a few).
Space has now become a battleground for these privately owned corporations. To the east, companies like SpaceX, Blue Origin, and Rocket Lab push the boundaries of research and development by introducing major technological advancements such as reusable rockets and satellite constellations providing global internet connectivity.
It's Not Just About Stargazing: The Financial Frontier of Space Exploration
Space transforms into a standalone economic sector, with tangible implications for financial markets, and an increasing incorporation of space exploration into investment portfolios. From a stock market perspective, "Galilee (ITG), our thematic indicator, maintains a prominent position as one of the top performers in our Thematic Codex, recording a performance of +51.8% over the last 12 months as of April 25, compared to +10.8% for a broad stock market index like the MSCI World," reports Ledda.
Contrary to popular belief, the sector offers a balance between growth and value stocks, often represented by industrials with more reasonable stock valuations than their rapid-growth equivalents. This valuation is estimated to be around 22 times the projected earnings, and the allure of space exploration's expansion prospects gradually regains favor.
To the Stars, the Best Stocks to Invest in for a Space Boom
Investors wishing to position themselves on the space exploration wave can choose from a selection of stocks like industry heavyweights Airbus, Thales, BAE Systems, and Rocket Lab, or indirectly through companies involved in the theme for only a fraction of their activities, such as Amazon, Linde, TSMC, and Qualcomm,
For those inclined towards ETFs (trackers), "Galilee - Space Exploration AMCs allow investment in the 50 most significant values of the theme, according to our exclusive index. Lastly, those preferring active management can consider the fund managed by Financière de l'Echiquier, Echiquier Space," says Ledda.
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- The design and manufacture of aircraft, including propulsion systems, advanced materials, and navigation software, not only contribute to the civil aviation sector but also serve as a foundation for technological advancements in defense, space, and various industries.
- The financial sector is increasingly acknowledging space exploration as a tangible economic sector, with investment portfolios seeing an incorporation of space-related companies due to their potential for growth and balance between growth and value stocks.
- The conquest of space is becoming a battleground for privately-owned corporations, with space agencies, and industrial giants like SpaceX, Blue Origin, and Rocket Lab pioneering significant technological advancements in space travel, including reusable rockets and satellite constellations.
