Space stocks are surging, thanks to a White House Executive Order pushing the U.S. government to become a primary customer in the space trade. Plans include accelerating the Artemis program to return to the Moon by 2028 and establishing a permanent lunar presence by 2030 with nuclear power capabilities.

Private industry benefits from a “commercial-first” procurement mandate, shifting towards “as-a-service” models for predictable revenue streams. Lockheed Martin and Leidos Holdings are poised to capitalize on the space push, with Lockheed Martin seeing an 18% stock increase and $18.6 billion in revenue, while Leidos saw a 29% stock increase and $4.5 billion in revenue.

Lockheed Martin’s space division saw revenue growth to $3.36 billion, driven by strategic and missile defense programs. The defense firm’s backlog of orders increased to $179.1 billion, showcasing high demand for its services. Lockheed Martin raised its share repurchase limit and quarterly dividend.

Leidos, a U.S. government contractor, secured a $760 million NASA subcontract for space exploration. The company is diversifying beyond defense contracts with the purchase of ENTRUST Solutions Group. Leidos raised its dividend by 7.5%, offering a 0.87% yield.

Both Lockheed Martin and Leidos present strong investment opportunities. Leidos is diversifying and trading at a lower valuation, while Lockheed Martin offers a higher dividend yield and history. Investors should consider both stocks for long-term growth potential.

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