By now everyone and their Grandma are aware of SpaceX‘s record-breaking IPO launch last Friday. But despite all the pomp and ceremony, the stock can’t join the S&P 500 until June 2027 at the earliest due to eligibility rules.
That doesn’t mean investors can’t buy the stock, just that any index trackers won’t benefit from it.
Still, that doesn’t mean the S&P will entirely miss out the space theme. It just means its exposure to the rapidly-growing industry comes from a more diverse set of stocks.
For me, the key question is simple: which listed companies could benefit while SpaceX waits?
Why space stocks look interesting
The space trade is not just about rockets. It also includes satellites, communications gear, sensors, launch support, and industrial parts.
That matters because the quieter businesses can often make steadier money than the headline-grabbing names.
If I’m looking at the S&P 500, I want companies with real operations, not just a story.
| Stock | Space link |
|---|---|
| Honeywell (NASDAQ: HON) | Aerospace systems, sensors, and components used in space missions. |
| Boeing | Space hardware and launch-related work. |
| Lockheed Martin | Satellites, spacecraft, and government space contracts. |
It’s worth noting that these companies are also involved in defence to varying degrees, which doesn’t agree with every type of investor.
But Honeywell is probably the least-defence-involved of the three.
A closer look at Honeywell
Honeywell is a good example because it’s not a pure space stock, which is the point. It sits inside a much broader industrial business, but its aerospace division gives it exposure to the kind of systems that space programmes need.
That can be more attractive for a novice investor than a small pureplay that still burns cash. Honeywell also fits the ‘picks-and-shovels’ idea: it sells the tools, systems, and parts that help the theme run.
Its 2025 sales rose 8% to $37.4bn, adjusted earnings per share (EPS) reached $9.78 in its latest figures, and the board has kept rewarding shareholders with regular dividend increases.
Still, any slowdown in aerospace, building systems, or China could hurt earnings. Plus, the company faces execution risk as it reshapes the portfolio and prepares for a more focused future.
What about outside of the S&P 500?
Some of the most exciting space names aren’t in the index. AST SpaceMobile, Iridium Communications, and Rocket Lab are all closely tied to commercial space, but they sit outside the S&P 500 for now.
They offer more growth potential, but also tend to be riskier and more volatile, which matters if you’re new to the sector.
There’s also a private-market angle. Baillie Gifford’s Scottish Mortgage Investment Trust has a large SpaceX holding, and recent reporting put the stake at about 19.3% of the portfolio.
Final thoughts
For novice investors seeking space exposure, the message is simple: the opportunity is real, but it may be found more in the supporting businesses rather than the rockets themselves.
That’s why Honeywell, Boeing, and Lockheed Martin deserve a closer look, even if they’re not the most glamorous names in the sector.
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Mark Hartley owns shares in Scottish Mortgage Investment Trust and SpaceX.
