Forget SpaceX: These Canadian Space Stocks Offer Major Growth Potential!

SpaceX is a revolutionary company, but it isn’t a stock you can buy. However, these Canadian space stocks offer tremendous growth potential as well.

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This morning, SpaceX executed another historic launch of astronauts to the International Space Station. The incredible accomplishments SpaceX has achieved in under two decades have brought a whole new light back to space. And now, many investors are looking for any space stocks that can give them exposure to this high-potential industry.

What SpaceX did today wasn’t special, because it carried humans. The company has already done that multiple times before. Instead, it was historic, because it was the first time the company ever flew humans on a rocket and capsule that it was reusing.

That’s what’s so incredible about SpaceX. Space has been an industry that offered tonnes of potential for years. However, few space stocks exist, and we’ve done minimal exploration over the years, because it was so expensive that it was hard to justify the economics.

Elon Musk, though, being the revolutionary thinker that he is, figured out that if you could reuse rockets and launch vehicles, the most expensive part of going to space, you could scale costs. This would eventually cut down the marginal cost of each launch and make the industry more accessible.

That’s the model of the industry today, and with the rapid innovation in our economy these days, there are now tonnes of opportunities.

While SpaceX isn’t a stock, there are various ways for investors to gain exposure to the industry. Whether it’s companies that make parts for satellites or others building spacecraft to take humans on spaceflights, it all depends on what you’re looking for.

SpaceX isn’t a stock: Here are the top Canadian space stocks to buy

In Canada, Magellan Aerospace (TSX:MAL) could be a great way to play the growing investment in space travel.

The high-potential growth stock makes parts for the aerospace industry. Some of its products include rockets as well as hardware for aircraft. It also makes small satellites with lifetimes from two to seven years or more.

Because the company also supplies the airline industry, sales were impacted by the pandemic. This makes Magellan an ideal stock to buy today, because it’s cheap and has recovery potential in addition to the growth potential from its exposure to space.

If you want stocks that are more like SpaceX, with even more exposure to space, you could also consider Cathie Wood’s space exploration ETF.

Another Canadian stock to consider that recently went public is MDA (TSX:MDA). As I’ve mentioned before, space and the opportunities it presents aren’t all about rockets and launch vehicles.

Once these humans or uncrewed spacecraft are in space, there is a tonne of technology and automation needed. That’s where MDA comes in.

The tech stock is currently building the Canadarm3. This AI-enabled robotic arm is being built in partnership with the Canadian Space Agency. The arm will be part of a U.S.-led initiative that will enable sustainable exploration of the moon.

So, the AI-powered Canadarm3 has an important role in performing tasks around the moon without human intervention.

Although you can’t buy SpaceX, these three stocks all have significant potential, especially over the coming years, as space flights become more popular. However, some of the best investments in the space industry can be found south of the border.

American space stocks to consider

In addition to these Canadian space stocks, there are several opportunities trading on U.S. exchanges.

Virgin Galactic Holdings stock is one of the most popular space companies besides SpaceX. The company founded by Richard Branson aims to make suborbital space flights for space tourists.

In addition, there are also several high-quality space companies going public this year through special purpose acquisition companies, including Rocket Labs, which makes one of the coolest-looking rockets.

Bottom line

Space is an industry going through major innovation at the moment. And as exciting as the innovation is to make discoveries, it’s even more important to help the industry scale costs.

Although space travel isn’t new, the industry is going through an economic revolution, making it a lot more feasible to go to space.

While governments almost completely funded these projects in the past, private companies are now making investments in the industry, recognizing the incredible opportunities that exist today.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Virgin Galactic Holdings Inc.

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