Top Picks 2017: Orbital ATK

01/05/2017 6:00 am EST


Jim Powell

Principal Analyst, Global Changes & Opportunities

Our Top Pick for speculative investors in 2017 is involved in a new industry with great long-term promise: private space companies, notes Jim Powell, editor of Global Changes & Opportunities Report.

These firms are launching satellites for government and private customers and for their own commercial purposes.

They are not only giving NASA a run for its money, they are also selling launch and cargo services to the giant space organization.

The privatization of space is being made possible by highly efficient, and surprisingly affordable, rocket engines and satellites.

It no longer takes $10 million dollars to put a pound of anything into orbit, and to get something useful done up there. The lower costs for everything are opening the way to space for many industries.

Only a few private space developments have come to the attention of investors. Ultimately, billions of dollars will be created by the new industry, of which a healthy portion will flow to its shareholders.

My top recommendation for the privatization of space is Orbital ATK (OA), which was was formed early last year from the merger of Orbital Sciences and the aerospace division of Alliant Techsystems.

Orbital ATK designs and builds a variety of launch vehicles and satellites for commercial and military customers. The company’s small to medium-sized rockets are in especially high demand.

The same is true of the company’s small satellites that do everything from take photos, monitor global weather, provide telecommunication services, and perform classified tasks for the US military.

Lastly, Orbital ATK’s advanced Cygnus launch vehicles regularly carry supplies to the International Space Station where they dock themselves.

The old phrase “The sky’s the limit” doesn’t apply to Orbital ATK, which is why I think most investors should add the stock to their long-term portfolios.

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