The space industry is taking off, propelled by a number of factors, including the rapid expansion of communication satellite constellations; the increasing use of space-based services across a wide range of industries; a surge of private investment in space-related technologies; and, most importantly, rising government and defense spending.

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The biggest point to remember about the space industry is that it is in flux right now. The industry's focus is shifting from getting systems up there quickly to building reliable, sustainable systems capable of meeting ongoing strategic needs. This shift from development to regular operations has opened up a potentially lucrative market.

In dollar terms, per Global Market Insights, the world's space economy hit $439.1 billion last year and is expected to reach $462.4 billion this year. By 2035, that number is predicted to climb as high as $851.8 billion for a 7% CAGR over the forecast period. This is a large and fast-growing market, and investors are starting to buy in.

We've opened up the database at TipRanks to look up the details on two space stocks that are getting solid analyst attention after making recent acquisitions. These are companies that have already built up a good business; now that they are expanding, Wall Street's experts are growing even more bullish. Let's give them a closer look and find out why.

Rocket Lab USA (RKLB)

The first stock we'll look at, Rocket Lab, is one of the leading private space companies in the US. The company specializes in providing end-to-end launch services that are designed to put small satellites and spacecraft into low-earth orbit (LEO), at lower cost and with faster turnaround times. Rocket Lab has built its business on the deployment of reusable launch vehicles that are optimized for lofting small payloads – a niche that Rocket Lab engineered to meet a serious need within the space industry. Small LEO satellites and spacecraft are essential in a variety of fields, including communications and Earth observation.

Rocket Lab's business is built around its customer base. The company has become an important supplier of space launch capabilities for satcom providers, communications companies, and imaging firms, as well as a broad range of government agencies. Rocket Lab's launch facilities and rocket technology allow these customers to put the necessary payloads into orbit to support their own business models.

On the operational end, Rocket Lab says Electron is the second-most frequently launched U.S. rocket. Electron, the company's proprietary small-payload rocket, is a reusable platform designed to send up a 300-kilogram payload and return safely to Earth. Rocket Lab says Electron has completed 91 launches and delivered more than 200 satellites to orbit. Electron is the only reusable small-payload rocket currently in service.

In addition, Rocket Lab is working to expand its launch capabilities. The company has the HASTE project, the Hypersonic Accelerator Suborbital Test Electron, which is designed to test suborbital systems at high speeds. HASTE, which is operational, is designed to carry a payload of 700 kilograms. The company's other major project, Neutron, is in the late development stages. Neutron is another reusable launch vehicle but on a far larger scale than Electron. The Neutron rocket is designed to put a 13,000-kilogram payload into low Earth orbit, or to launch a 1,500-kilogram payload onto a Mars or Venus trajectory. Rocket Lab has said that it intends to conduct its first Neutron launch by the end of this year.

On the financial side, Rocket Lab's 1Q26 results, the last reported, showed 'record financial performance' – the company brought in more than $200 million at the top line. That figure was up 63.4% year-over-year and beat the forecast by $10.89 million. At the bottom line, Rocket Lab ran a net loss; the GAAP EPS came to ($0.07), beating expectations by a penny.

All of that forms the background for Rocket Lab's recent acquisition of Iridium Communications, a global provider of satellite services for voice, data, and positioning, navigation, and timing (PNT). Rocket Lab will gain Iridium's global satellite communications network, spectrum assets, and decades of operational experience. The acquisition, which was announced on June 29, will be a stock-and-cash transaction, valuing Iridium at $54 per share, representing an enterprise value of approximately $8 billion.

Morgan Stanley's 5-star analyst Kristine Liwag covers Rocket Lab and is impressed by the Iridium acquisition, noting the positive implications of the deal for the company.

"The most important recent development is RKLB's announced acquisition of Iridium. Beyond the immediate financial implications, we believe the transaction materially enhances Rocket Lab's strategic positioning by expanding its presence beyond launch into satellite connectivity. This broadens the company's addressable market and strengthens its ability to pursue a more vertically integrated Space platform strategy… Accordingly, we believe investors should increasingly evaluate Rocket Lab not solely as a launch company, but as an emerging integrated space platform… We expect RKLB's top and bottom-line growth to be supported by the completion of the Iridium acquisition, which posted ~$872mn revenue and ~$495mn EBITDA in 2025A. We expect IRDM to grow revenue at ~2.6% CAGR (2025A-2028E), and EBITDA at ~1.8% CAGR (2025A-2028E)," Liwag stated.

Those views underpin Liwag's Overweight (i.e., Buy) rating on RKLB shares, while her $105 price target implies 33% upside potential over the next year. (To watch Liwag's track record, click here)

Overall, RKLB has 16 recent analyst reviews on record, and the 13-to-3 split, favoring Buys over Holds, makes for a Strong Buy consensus rating. The stock is trading for $78.81, and its $113.43 average price target indicates a potential one-year gain of ~44%. (See RKLB stock forecast)