Are these rallying, outperforming space stocks about to take off?

By
A A A

By Mary-Lynn Cesar for Kapitall.

Forty-five years ago this Sunday, the Apollo 11 lunar module landed on the moon with two of the most famous astronauts in US history. The mission was a success on two fronts: it achieved President John F. Kennedy's objective of putting a man on the moon, and it placed the US ahead of the Soviet Union in the space race.

Today NASA is no longer sending astronauts to the moon, instead focusing its efforts on deep space exploration. Earlier this month, the agency signed a $2.8 billion contract with  Boeing ( BA for the development of the core stage of the Space Launch System (SLS). The SLS, which will be most powerful rocket ever built, will transport cargo, including the Orion spacecraft, and crew to near-Earth asteroids and, eventually, Mars.

The upcoming anniversary of the moon landing inspired us to look for investment opportunities amongst space stocks. We began by creating a universe of space stocks, which we pulled from NASA's list of its top 100 contractors in 2013  as well as press releases announcing contracts awarded this year. Then we screened that group for stocks that are  rallying above their 20-day, 50-day, and 200-day moving averages ( SMA ) . This indicates that these stocks have strong upward momentum and may soon be taking off like a rocket. 

Next, we took a look at past performance and screened for stocks that have  outperformed over the last quarterwith at least a 10% return . While past performance isn't indicative of future success, a solid performance in the previous quarter combined with the current momentum may lead to another strong quarter.

We were left with three space stocks on our list. Do you think these stocks have significant upside potential? Use this list as a starting point for your own analysis, and let us know what you think in the comments. 

Click on the interactive chart to view data over time. 

1. Air Products & Chemicals Inc. ( APD , Earnings , Analysts , Financials ): Provides atmospheric gases, process and specialty gases, performance materials, equipment, and services worldwide. Market cap at $27.55B, most recent closing price at $129.80.

The stock is rallying 0.86% above its 20-day SMA, 5.51% above its 50-day SMA, and 13.77% above its 200-day SMA.

Performance over the last quarter at 13.19%.

Air Products and Chemicals won a $10.5 million contract to provide liquid nitrogen and oxygen to NASA's research centers and space center in California, Ohio, and Alabama.

2. General Dynamics Corp. ( GD , Earnings , Analysts , Financials ): Provides business aviation, combat vehicles, weapons systems and munitions, military and commercial shipbuilding, and communications and information technology products and services worldwide. Market cap at $40.22B, most recent closing price at $117.51.

The stock is rallying 0.53% above its 20-day SMA, 1.11% above its 50-day SMA, and 15.62% above its 200-day SMA.

Performance over the last quarter at 12.37%.

General Dynamics was NASA's fourth top contractor in 2013 and has received $13.11 billion dollars from the agency.

3. URS Corporation ( URS , Earnings , Analysts , Financials ): Provides engineering, construction, and technical services to public agencies and private sector clients worldwide. Market cap at $4.04B, most recent closing price at $58.56.

The stock is rallying 20.34% above its 20-day SMA, 25.71% above its 50-day SMA, and 19.78% above its 200-day SMA.

Performance over the last quarter at 24.78%.

URS Corporation was NASA's seventeenth top contractor in 2013 and has received $3.16 billion dollars from the agency.

(List compiled by Mary-Lynn Cesar. Monthly return data sourced from Zacks Investment Research. All other data sourced from finviz.)

Kapitall Wire is a division of New Kapitall Holdings, LLC. Kapitall Generation, LLC is a wholly owned subsidiary of New Kapitall Holdings, LLC. Kapitall Wire offers free investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by New Kapitall Holdings, LLC, and its affiliate companies.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: SMA

Kapitall

Kapitall

More from Kapitall:

Related Videos

Stocks

Referenced

Most Active by Volume

42,244,673
  • $16.24 ▲ 0.19%
38,362,128
  • $99.325 ▲ 1.69%
23,931,367
  • $2.52 ▼ 21.50%
23,635,221
  • $27.81 ▼ 0.07%
23,045,213
  • $76.78 ▲ 1.09%
22,095,253
  • $93.95 ▲ 1.02%
21,646,929
  • $14.29 ▼ 4.29%
20,327,600
  • $22.85 ▼ 1.72%
As of 10/20/2014, 01:44 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com