Top space infrastructure stocks to buy

Screening Filters

1. Market Cap ≥ $5,000,000,000

   • Purpose: Focus on larger, more established companies.
   • Rationale:
     • “Top” space infrastructure stocks usually implies leaders with proven operations, access to capital, and scale.
     • A $5B+ market cap helps filter out highly speculative micro/small caps and keeps the list tilted toward more stable, institutionally followed names.

2. Industry: Aerospace & Defense

   • Purpose: Narrow the universe to companies directly involved in spacecraft, launch systems, satellites, and related infrastructure.
   • Rationale:
     • Space infrastructure (launch services, satellites, ground systems, etc.) largely sits within Aerospace & Defense.
     • This filter removes unrelated sectors (e.g., software, retail) and keeps the focus on companies that actually build and operate the hardware and systems enabling the space economy.

3. Theme: Space Economy

   • Purpose: Target companies explicitly tied to the space theme (e.g., satellite constellations, launch providers, space communications).
   • Rationale:
     • Not every aerospace/defense firm is a “space infrastructure” play—some are more focused on aircraft, missiles, or defense IT.
     • The “Space Economy” theme identifies companies where space-related activities are a meaningful part of the business model, aligning the results with your focus on space infrastructure rather than general defense.

4. Return on Equity (ROE) ≥ 8%

   • Purpose: Ensure a baseline of profitability and capital efficiency.
   • Rationale:
     • Space projects are capital-intensive. An ROE ≥ 8% helps filter for companies that are not only in space but also generating reasonable returns for shareholders.
     • This tends to favor more disciplined operators over those that are still burning a lot of capital without clear profitability.

5. Revenue 5-Year CAGR ≥ 5%

   • Purpose: Capture companies with consistent top-line growth.
   • Rationale:
     • For “infrastructure” in a developing sector like space, growth is important—demand for launch capacity, satellites, and data services should be expanding.
     • A minimum 5% revenue CAGR over five years screens for businesses that are actually scaling, not stagnating or shrinking.

6. Price-to-Sales (P/S) Ratio ≤ 10

   • Purpose: Avoid the most extremely overvalued names relative to their sales.
   • Rationale:
     • High-growth, thematic areas like space can attract speculative valuations.
     • Capping P/S at 10 doesn’t make stocks “cheap,” but it reduces exposure to the most stretched valuations, making the list more suitable for considering as investments rather than pure speculation.

Why Results Match Your Request

• The industry and space-economy theme filters specifically pinpoint companies whose core operations are tied to space infrastructure (launch, satellites, communications, ground systems), aligning with “space infrastructure stocks.”
• The market cap, ROE, and revenue growth filters shift the focus toward established, growing, and reasonably efficient businesses—what many investors would consider “top” candidates rather than early-stage, unproven ventures.
• The P/S valuation cap adds a basic valuation discipline, making the resulting list more suitable for considering as buys rather than just identifying popular or hyped space names.