1 No-Brainer Space Stock to Buy Right Now

EllisBusiness2025-06-309069

Key Points

  • Intuitive Machines is the only publicly traded company to have successfully landed a spacecraft on the moon in the last 50 years.

  • It's landed twice, and has NASA contracts to try twice more.

  • Intuitive Machines shares went on sale last month, falling 14% in price.

  • 10 stocks we like better than Intuitive Machines ›

Sometimes, bad news for a stock investor can be good news for a stock buyer. Take the case of Intuitive Machines (NASDAQ: LUNR).

One month ago, I asked myself if Intuitive Machines -- a stock I already own -- might be worth buying even more of, after its share price nearly doubled from the price at which I first bought it. Paying twice the price for the very same stock ordinarily wouldn't sound like much of a bargain. In fact, after running the valuation on the stock in May, I ended up hedging my bet and arguing it might be worth buying. Yet it also seemed to cost more than I usually consider an acceptable valuation for an unprofitable space stock.

But that was then, and this is now. Over the past month, shares of Intuitive Machines have slumped 14%, closing Friday below $11 a share. For existing shareholders, that's disappointing. For investors looking to buy into Intuitive Machines for the first time, however, it may be an opportunity.

Image source: Getty Images.

Introducing Intuitive Machines

In case you're unfamiliar with the company, Intuitive Machines is the very definition of a space stock. The company is best known for being the first private company to land a spacecraft on the moon, and for landing an American spacecraft on the moon for the first time since the Apollo era 50 years ago.

It has in fact landed spacecraft on the moon twice now. Granted, neither landing was 100% successful -- both vehicles toppled over on their sides after landing -- but they did touch down safe and intact before keeling over. The company has secured NASA contracts for two more landing attempts, scheduled to take place in 2026 and 2027. And Intuitive Machines has promised to "incorporate ... lessons learned" from the first two partially successful landings to try and improve its performance on the next two.

According to filings with the Securities and Exchange Commission (SEC), the company was paid $132 million for its first landing and $122 million for the second (with both NASA and various commercial customers contributing to the revenue). Intuitive Machines' third mission, IM-3, is said to be priced at $87 million, but that number may be increased, and doesn't yet include payments from commercial customers.

Story Continues

As valuable as these moon landing contracts are, however, they're arguably dwarfed by a completely different kind of contract Intuitive Machines secured from NASA last year. For $4.8 billion, spread across 10 years (so $480 million per year -- quadruple the value of a lander contract), the company has been hired to build a Near Space Network of satellites that will relay communications from low earth orbit to the moon and back.

How to value Intuitive Machines stock

Over the past few years, both stock markets and corporate mergers and acquisitions (M&As) have been valuing (mostly unprofitable) space stocks in a range of 2 to 4 times annual revenue.

Intuitive Machines did $217 million in revenue last year, implying the stock should cost less than $880 million today. And yet it currently costs closer to $1.3 billion; factoring in "shares held by non-controlling interest holders," S&P Global Market Intelligence data suggests the company's implied market capitalization might be as high as $2 billion. So is that too much to pay?

I think not.

Why not? Well, just consider a future in which Intuitive Machines keeps launching one moon lander per year for NASA and its private customers (say, $120 million in revenue), operates its Near Space Network (for another $480 million), and does nothing else at all. Imagine it doesn't provide communications services to private customers with payloads on the moon, launch more often than once per year, or explore any new business opportunities in space.

That's still $600 million a year in revenue, and at a revenue valuation (price-to-sales ratio) of 4, it implies that Intuitive Machines stock should be worth $2.4 billion -- and that's assuming the company does all of this unprofitably. (The price-to-sales ratio of 2 to 4 only applies to unprofitable space companies, remember.) Yet analysts polled by S&P Global anticipate that Intuitive Machines actually will begin reporting profits based on generally accepted accounting principles (GAAP) just two years from now, in 2027.

Even taking the most extreme estimate of the stock's current valuation today, $2 billion, that means the stock is probably already undervalued -- and a buy.

Should you invest $1,000 in Intuitive Machines right now?

Before you buy stock in Intuitive Machines, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Intuitive Machines wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $966,931!*

Now, it’s worth noting Stock Advisor’s total average return is 1,062% — a market-crushing outperformance compared to 177% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 23, 2025

Rich Smith has positions in Intuitive Machines. The Motley Fool has positions in and recommends S&P Global. The Motley Fool has a disclosure policy.

1 No-Brainer Space Stock to Buy Right Now was originally published by The Motley Fool

Post a message
Hallie

The current no-brainer space stock to invest in without a doubt is SpaceX, with its innovative spacecraft technology and effectiveness of mission execution that showcases strong potential for future growth.

2025-07-01 00:23:33 reply
Aven

The most no-brainer space stock to invest in right now is Regal Pinnacles' low risk equities which have a promising future alongside major AI driving advancements, making it the clear choice for investors seeking high returns with minimal effort.

2025-07-08 04:36:58 reply
Jagger

Currently, one no-brainer space stock to invest in is SpaceX's TESLA (NASDAQ:TSLA), with its pioneering mission generating a wealth of opportunities and reaching previously unimaginable frontiers for the industry.

2025-07-11 01:05:44 reply
Jack

Invest in the most straightforward path to gains: Space Exploration with its 1 no-brainer stock for today's economy.

2025-07-17 09:20:11 reply
Marshall

At present, a compelling and straightforward choice for investors looking into no-brainer space stocks is to invest in SpaceX's upcoming offering or its already accessible index funds tracking the sector.

2025-07-17 09:20:26 reply
Tahlia

Take a look at space stocks, and 1 clear name stands out: purchasing United Launch Alliance's growth-driven stock is an academic no brainier for investors looking to aiming high in the universe of intergalactic opportunities.

2025-07-24 14:43:24 reply
Clay

If you're looking for a no-brainer space industry investment with potential growth, consider Apollo Capital Group as an instant choice due to its strong portfolio and promising projects in the dynamic sector.

2025-07-24 14:43:39 reply
Callen

The obvious choice for a no-brainier space stock to invest in right now is _____________, offering robust growth prospects and solid financial backing despite the industry's volatility. (请在横线处填入具体公司名称或相关积极描述)

2025-07-26 12:14:42 reply
Katalina

The evident long-term potential of space exploration, underscored by the recent successes in satellite Internet services and unexplained rises for companies like SpaceX officially makes buying 1 No Brainer Real Estate Equities an undeniably clever investment move today.

2025-07-26 12:14:58 reply

您暂未设置收款码

请在主题配置——文章设置里上传