10 Top Space Stocks to Watch in 2018, and the One to Buy Today

The value of the space industry is expected to more than triple from roughly $350 billion this year to $1.1 trillion in 2040.

That growth has led us to rank 10 of the top space stocks to watch by 2017 performance. These are the big-name tech and defense companies that will be the leaders of this explosive industry over the next two decades.

However, only one of these is on our list of best stocks to buy for 2018, which we'll show you today...

Top Space Stock Current Share Price 2017 Return (as of Oct. 13)
Aerojet Rocketdyne Holdings Inc.

(NYSE: AJRD)

$34.35 +91.5%
Boeing Co.

(NYSE: BA)

$261.92 +68%
Entegris Inc.

(Nasdaq: ENTG)

$29.52 +64.6%
Facebook Inc.

(Nasdaq: FB)

$173.80 +50.9%
Adobe Systems Inc.

(Nasdaq: ADBE)

$153.57 +49.3%
BWX Technologies Inc.

(NYSE: BWXT)

$59.20 +49.1%
Bruker Corp.

(Nasdaq: BRKR)

$30.92 +46%
HEICO Corp.

(NYSE: HEI)

$87.66 +42%
Apple Inc.

(Nasdaq: AAPL)

$156.97 +35.5%
Amazon.com Inc.

(Nasdaq: AMZN)

$1,004.94 +34%

This Stock Could Skyrocket: A tiny $6 million company has just won in a shocking patent verdict. Now an imminent announcement could ignite a 28,700% revenue surge - and you can get in on the ground floor. Learn how...

Since the early 1960s, aerospace and defense companies have been building vehicles for space agencies like NASA. For example, General Dynamics Corp. (NYSE: GD) was contracted to help build the propulsion rocket systems for the famous Apollo missions.

But the industry is no longer just for aerospace and defense companies.

top space stocks to watchIn fact, dozens of the largest U.S. tech companies have just entered the space industry within the last 20 years. In September 2000, Amazon.com Inc. CEO Jeff Bezos launched an Amazon subsidiary called Blue Origin. This firm makes launch vehicles and rockets mainly for access to Earth's orbit.

Meanwhile, Facebook launched its Internet.org initiative just four years ago. CEO Mark Zuckerberg plans to launch satellites into Earth's orbit to "connect the two-thirds of the world that doesn't have Internet access," according to the initiative's official Facebook page.

While both AMZN and FB have posted double-digit returns this year, the top space stock by performance on the list is Aerojet Rocketdyne Holdings Inc., with a 91.5% gain. Its best month was August, when shares climbed 26.4% in the wake of a stellar Q2 2017 earnings report.

On Aug. 3, Aerojet reported earnings of $0.32 per share on sales of $459.6 million. Its earnings number was more than double Wall Street's forecast, which called for just $0.15 per share. Sales also beat the forecasted $433.7 million by 6%.

Despite AJRD's impressive gain, that's not the space stock we're recommending today. Our recommendation has been one of Money Morning Executive Editor Bill Patalon's favorite defense stocks for six years. Since he first recommended it in 2011, it's handed Money Morning readers a 264.4% return.

And this "space" stock has plenty of room to run even higher...

Earlier this year, NASA awarded this company six contracts worth a total $4.2 billion - some of the largest NASA contracts ever.

The firm is set to build new vessels that will shuttle astronauts to the International Space Station orbiting Earth.

Its ambitious launch schedule starts in 2018 with two test flights that will carry two crew members. Beyond that, actual launches will likely begin in 2019.

Here's how you can profit from this company's long-term space plans...

The Best Space Stock to Buy and Hold for 2018

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Boeing - the world's second-largest defense contractor - is Bill's favorite defense stock to buy.

"This is a company that has a proven record of taking cash flow and giving it back to shareholders in the form of dividends, stock buybacks, and other kings of financial engineering," Bill mentioned in February 2017.

The firm boasts a 2.37% dividend yield and pays $1.42 per share each quarter. Its quarterly dividend has grown 223% in the last five years and has increased each year since 2012, when it was just $0.44.

Boeing's profits have also surged over the last four years. Annual earnings climbed 27.7%, from $5.96 per share in 2013 to $7.61 per share last year. Revenue also grew 9.2% over the same period, from $86.6 billion to $94.6 billion. This was due to the company's massive orders, including 926 commercial and defense aircraft deliveries to clients in 2016.

Annual earnings this year are expected to rise as much as 37.3% to $10.45 per share. This overall growth will come from Boeing's space division, whose profitability has been rising this year...

Profit from the Boeing Defense, Space & Security division grew 15.6%, from $1.41 billion in the first half of 2016 to $1.63 billion in the first half of 2017. This is expected to grow further next year as the firm fulfills its backlog of orders, which is valued at $58 billion as of the second quarter.

BA stock's continued rally will also come from the firm's dominance in the commercial plane market...

Air Transport World reported Boeing had 451 commercial plane orders in August, valued near $73 billion. Boeing's orders beat out European competitor Airbus, which only logged 261 commercial orders valued at $36.5 billion. From January to August, Boeing had 384 orders, while Airbus only had 215.

The Boeing stock price is up 68% to $261.92 this year. Analysts expect it to rise another 33.6% by October 2018.

Up Next: Tiny $6 Million Company Wins in Historic Patent Verdict

It was a legal battle for the ages, with $97 billion hanging in the balance.

And now, a tiny $6 million company has won in a stunning patent verdict, setting up an explosive 28,700% revenue surge in the next 18 months.

With 40 registered patents and 500 patents pending, a major announcement is imminent.

The time is now. Don't miss this...

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