2 Sneaky SpaceX IPO Sympathy Plays

Perhaps the most anticipated IPO of the decade, SpaceX has captured the attention of a portion of the investing world. It’s hard to imagine people getting more hyped for the stock. However, there are a few considerations when considering SpaceX:

• With this IPO, the hype will be baked into the stock price, and everyone will be watching it. There’s less potential advantage to exploit.
• It’s hard for space stocks to be profitable right now and look like excellent investments. Out of the major outstanding ones, none have a high Zen Rating. The earnings aren’t really there yet.

That means it might be a good idea not to necessarily consider SpaceX itself (sometime down the line), and instead consider stocks related to SpaceX or in a tangential industry. Here are two of them (both A-rated) worth your attention…

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1. Dell Technologies Inc (NYSE: DELL)

You might not associate SpaceX or other space programs with Dell, but models like xAI run on servers and infrastructure supplied by Dell. 

Computers and computing infrastructure will be all the more necessary for SpaceX’s efforts. It is doing well with the AI boom. The outlook is generally strong for DELL, even with the slight downturn in share price over the last few weeks.

Looking into it more deeply, DELL also has excellent Component Grades (see below). 

Momentum, Growth, and Sentiment all have an A, signifying not only great potential, but that key investors are still confident in the stock. Investors will want to monitor demand for AI and what SpaceX and related companies use for their IT needs.

2. Moog Inc (NYSE: MOG.A)

Working in the defense, aerospace, and industrial markets (among others), MOG.A designs and manufactures precision motion and fluid controls. This includes controls related to spacecraft and satellites. If SpaceX and other companies are going to ramp up efforts in any way, they’re going to need parts and controls.

Component Grades are generally above average, with a B for Sentiment, Safety, Financials, and Momentum. However, the recent share price is the thing to note:

This growth is generally driven by strong earnings, and current events mean that demand is likely to remain strong. Investors will want to keep an eye on defense demand and aerospace demand alike.

However, things can change quickly with the above stocks (or any stock), given SpaceX’s IPO and other ongoing news stories. To keep yourself up to date, you’ll want to get WallStreetZen Premium. With it, you’ll get an unlimited watchlist, all of the fundamental information you need, access to premium Stock Ideas pages, and more.

Yet are you interested in a more guided approach instead? For that, we have Zen Investor. With it, you’ll receive regular commentary and access to live webinars from our own Steve Reitmeister, who has 40+ years of investing experience. You’ll gain a better understanding of current events in the investing world, and you’ll also have access to a model portfolio using that experience and the Zen Ratings system.

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