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This Month's Exclusive Story Could These 3 Aerospace Firms Go Stratospheric in 2026?Submitted by Nathan Reiff. First Published: 12/22/2025. 
Key Points - Some space industry stocks have boomed this year, driven by hype surrounding federal defense spending, speculation about a SpaceX IPO, and more.
- Major contracts for Rocket Lab and L3Harris, each worth close to $1 billion, affirm these companies' dominance heading into 2026.
- AST SpaceMobile's rapid gains this year may cause some concern, but the firm's ambitious satellite launch plans and growing revenue could bode well.
2025 was a landmark year for the space industry, with historic advances in commercial space tourism, significant investment in new infrastructure, and the emergence of new publicly traded firms that broadened market interest. At the same time, NASA faces mounting financial pressure and the prospect of budget cuts, increasing the likelihood that commercial firms will need to fill critical operational and infrastructure roles. Buy This AI Stock Tomorrow Morning?
A former hedge fund manager known for spotting early winners is sounding the alarm once again. He called Netflix at $7.78 (up 4,200% since), Apple at $0.35 (up 20,000%), and Amazon at a split-adjust $2.41 (up 3,200%). Now he's turning his focus to a little-known AI company that just earned a near-perfect score in his new proprietary stock grading system. In a brand-new presentation, he reveals the name, ticker symbol, and why this could be the smartest AI move of the year... especially if you're over 50. Click here to watch it before word gets out. Investors can capture the sector's momentum with a broad-based exchange-traded fund (ETF) such as the Procure Space ETF (NASDAQ: UFO), but a handful of individual names may merit targeted consideration heading into 2026. The companies below are established players positioned to leverage their scale and experience for further growth next year. Rocket Lab's Government Contracts and Neutron Rocket Set the Stage for 2026 Industry player Rocket Lab (NASDAQ: RKLB) has seen notable volatility in its share price over the past year, but the recent trend has been upward. The launch and space services company has nearly tripled year-to-date, driven in part by a 75% rally over the last month. Some of that strength reflects broader industry momentum, including speculation that Elon Musk's SpaceX—privately held but one of the sector's most influential companies—might pursue an IPO in 2026. More directly, Rocket Lab has reported a string of operational wins that have strengthened its position as a go-to services provider for the Japan Aerospace Exploration Agency, the U.S. Space Force, and other government customers. A late-December $816 million contract with the Space Force—Rocket Lab's largest to date—points to potential expansion in government work next year. 2026 could also bring major developments for Rocket Lab's Neutron rocket. Management said in the latest earnings report that pad operations could begin in the first quarter, with first flights to follow. That and other positive results prompted multiple analysts to reiterate Buy or Overweight ratings in November. AST Finds Footing With Growing Revenue, Ambitious Satellite Launches Planned Satellite broadband company AST SpaceMobile (NASDAQ: ASTS) has been one of 2025's biggest performers, returning roughly 250% this year — outpacing many peers. That run-up has led some analysts to warn of overvaluation. Based on a consensus price target of $45.66, ASTS shows nearly 40% downside from current levels, and several firms have downgraded the stock in the past three months. Still, AST's latest earnings included encouraging metrics: pro forma cash and liquidity topped $3.2 billion, which should support the company's target of launching 45–60 satellites in 2026. Contracted commercial revenue commitments also exceeded $1 billion in the most recent quarter, signaling growing partner confidence. Although AST missed some analyst forecasts, revenue in the quarter grew roughly 13-fold year-over-year, indicating the business is gaining traction. Satellite Contract Worth Nearly $1 Billion Highlights L3Harris' Strong Fundamentals and Operations L3Harris Technologies (NYSE: LHX) operates with a different focus than the companies above, supplying communications systems, avionics, electronic warfare, intelligence, and other technologies for defense and aerospace customers. LHX shares have gained a more modest 38.6% year-to-date, and analysts still see upside. That upside could accelerate if L3Harris continues winning large contracts like its recent award from the Space Development Agency — an infrared tracking-layer satellite program worth up to $843 million announced in late December. In the latest quarter, L3Harris reported organic growth, projected about $22 billion in revenue for the full year, and generated nearly $2.7 billion in free cash flow, underscoring generally healthy fundamentals. Maintaining that momentum could keep supporting further gains in the share price.
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