We recently published a list of 7 Best Space Exploration Stocks to Invest In. In this article, we are going to take a look at where Redwire Corporation (NYSE:RDW) stands against other best space exploration stocks to invest in.

The space industry is growing faster than ever and is approaching the next frontier. The U.S. space economy is at the center of this advancement. The space industry is driving significant technological progress that is playing a major role in industries such as telecommunications, defense, energy exploration, bioscience, and manufacturing. Moreover, the robotic exploration missions have increased, accelerating the space activity. This growing space economy creates opportunities to invest in space stocks.

According to a report by McKinsey, the global space economy is expected to reach $1.8 trillion by 2035, up from nearly $630 billion in 2023. The key drivers for the growth of the space economy would be satellites, launchers, and telecommunication devices. For instance, Uber relies on satellite signals and provides GPS directions to drivers and riders.

The growing demand for positioning and navigation services on smartphones and the increased demand for monitoring and data collection powered by AI will be key for the space economy. According to Research and Markets, the global AI in space exploration market was valued at $3.4 billion in 2023. This market is expected to reach $14.25 billion in 2028, growing at a CAGR of 33.19%.

Trump’s Take on Space?

President Trump created the Space Force in his first tenure, creating history by passing a $728 billion defense bill. In his second tenure, the policy for the space economy is relatively unclear as the tariff agenda remains a priority.

Recently, the Chief of Space Operations, Gen. Chance Saltzman, told Defense One that the Space Force remains in a good spot.

“I think in the end, what you’ll see is that because our priorities were so focused on warfighting, so focused on the new emerging threats, that everybody is kind of coming to the realization that we have to address, that we were pretty well aligned with the new administration’s priorities, and so I think the Space Force is going to be in a good spot,” Saltzman said.

Late in 2024, the Pentagon announced to increase its spending for proliferated low Earth orbit (pLEO) satellite services from $900 million to a whopping $13 billion through 2028. This will create opportunities for both private and public contractors of the Pentagon.

Our Methodology

We used financial media reports to shortlist companies engaged in the space exploration business. We then looked for space exploration stocks widely held by hedge funds. Data for the number of hedge fund investors for each stock was taken from Insider Monkey’s database, updated as of Q4 2024. Finally, the 7 best space exploration stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them.

Story Continues

Why are we interested in the stocks that hedge funds and billionaire investors pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).Is Redwire Corporation (RDW) the Best Space Exploration Stock to Invest In?

A close-up of an antenna, its intricate designs a testament to the company's expertise in space infrastructure.

Redwire Corporation (NYSE:RDW)

No. of Hedge Fund Holders: 11

Redwire Corporation (NYSE:RDW) is a leading space infrastructure and innovation company. Redwire assists civil, commercial, and national security space programs. The company is engaged in the development and production of core space infrastructure. Redwire’s spacecraft portfolio is involved in missions and technologies supporting space exploration, including deep space, lunar, and Martian initiatives.

Redwire Corporation (NYSE:RDW), along with ispace-U.S., have signed an MoU to jointly pursue commercial lunar exploration and science missions for the NASA Commercial Lunar Payload Services (CLPS). The NASA CLPS is a multi-award indefinite delivery and quantity (IDIQ) contract with a maximum contract value of approximately $2.6 billion through 2028. Redwire is one of the prime contractors on NASA’s IDIQ contract.

The company has received several other contracts from NASA and other clients. By the end of 2024, the company secured $229.8 million in contract awards, ending the year with a backlog of $296.7 million. In FY2024, the company posted a record $304.1 million in revenue, up by 25% year-over-year. The increased demand for Redwire’s space infrastructure solutions and strategic investments led to revenue growth. The company delivered 186 sensors to support different space missions. Redwire added three new facilities in California and Poland, expanding its global footprint and improving its production capabilities.

Overall, RDW ranks 6th on our list of best space exploration stocks to invest in. While we acknowledge the potential of RDW to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks have lost around 25%. If you are looking for an AI stock that is more promising than RDW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.

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