Don't Miss AI's Third Wave
Investing in growth stocks can be an excellent way to put your money to good use in the stock market to make more money. There is no investment opportunity that does not come without its risks in the stock market. However, growth stocks present a higher degree of risk to investor capital than other, more well-established stocks that deliver slow and stable growth.
Investors with well-balanced portfolios can afford to take more risks and invest in stocks that have the potential to deliver eye-popping long-term returns. Increasing your chances of success with these stocks requires identifying trends that can stand the test of time.
Right now, investing in artificial intelligence (AI) stocks can be a good way to go. The segment is new and slated to grow due to the growing importance of AI in every aspect of our lives. However, AI isn’t the only emerging trend to consider. Space technology is another exciting space that warrants growth-seeking investor attention. While Elon Musk’s space exploration company is the first name that comes to mind for most people, there is a TSX-listed stock that should be on your radar as well.
MDA Space
MDA Space (TSX:MDA) is a Toronto-based international space mission partner company. The $3.23 billion market capitalization company might not be as big as U.S.-based space-related companies, but it can be a worthy stock to consider. The company provides advanced technology, solutions, and services to the growing space industry worldwide. The company operates through several business areas, providing end-to-end solutions and services for major industry operators.
MDA Space has managed to secure massive contracts lately, primarily due to high-profile projects like the Telesat Lightspeed satellite constellation and Canadarm3. The company’s September 2024-ending quarter saw it report a 50% year-over-year increase in its order backlog, amounting to roughly $4.6 billion.
Solid financial performance
Investing in stocks based purely on investor sentiment isn’t the wisest strategy. Besides popularity, a company’s fundamentals must be rock-solid to warrant being considered a good investment. This is where MDA Space stock is shining. Besides stacking up major contracts, MDA Space is delivering on them.
In the third quarter of fiscal 2024, the company’s year-over-year revenue increased by 38%, and its adjusted net quarterly profit grew by over 200%. Its operating cash flow increased from around $30 million to $258.8 million, reflecting the company’s solid financial performance. It has recently signed a $1.1 billion contract to build a network of low-Earth-orbit satellites with Globalstar.
Foolish takeaway
The space economy is only growing right now. While it might not be as exciting a company as those making rockets and sending them up to space itself, MDA Space holds an important place in the industry. Its strong presence in satellite communications, Earth observation, and space robotics spaces makes it an important contributor to a rapidly growing industry.
If you have $1,000 to invest in growth stocks right now, MDA Space stock can be an excellent pick to consider for your self-directed portfolio.
