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Intuitive Machines' Lunar Lander Hits a Milestone: Buy the Stock Now?
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Intuitive Machine Inc. (LUNR - Free Report) recently announced that its IM-2 mission Nova-C class lunar lander, Athena, has achieved all integration milestones and is now ready for launch after being securely enclosed within SpaceX’s payload fairing.
In collaboration with SpaceX, the IM-2 mission is scheduled for a multi-day launch window beginning no earlier than February 26. This will mark Intuitive Machines’ second mission under NASA’s Commercial Lunar Payload Services (“CLPS”) initiative, which supports the Artemis lunar exploration program.
As part of CLPS, this mission will deliver science and technology payloads to the Moon’s surface that will help advance research, facilitate future human exploration and contribute to establishing a sustainable human presence on the satellite.
No doubt the latest announcement strengthens LUNR’s position as a key player in the evolving space industry that might encourage investors to add this stock to their portfolio. However, before making any hasty decision, it would be prudent to take a look at how the company has performed at the bourses over the past year, its growth prospects as well as risks (if any) to investing in the same. The idea is to help investors make a more insightful decision.
LUNR Stock Outperforms Industry, Sector & S&P 500
Intuitive Machines’ shares have surged a solid 138.2% over the past year against the Zacks Aerospace-Defense industry’s decline of 4.3%. The stock has also outperformed the broader Zacks Aerospace sector’s growth of 3.5% as well as the S&P 500’s surge of 21.8% in the same period.
Image Source: Zacks Investment Research
Other defense players, such as Embraer (ERJ - Free Report) , Archer Aviation (ACHR - Free Report) and TransDigm Group (TDG - Free Report) , have also delivered a stellar performance, with their shares surging 135.5%, 108.1% and 10.1%, respectively, over the past year.
What’s Been Pushing LUNR Stock Up?
Over the past year, Intuitive Machines has secured key contracts and achieved milestones, reinforcing its expertise in space manufacturing and lunar exploration. These developments have likely strengthened investor confidence in this stock, as reflected in the company’s share price performance. Evidently, in January 2025, LUNR successfully delivered its Athena lander to Cape Canaveral after integrating Nokia’s Lunar Surface Communication System (LSCS) into the IM-2 mission. In the same month, it secured a NASA study contract under the NextSTEP Appendix R to advance lunar logistics, offloading and mobility solutions.
Earlier, in November 2024, LUNR partnered with Johns Hopkins APL to enhance lunar communication and navigation infrastructure. In September, the company won a $4.82 billion NASA contract for near-space communication services. In August, it secured a $116.9 million NASA contract to deliver six science and technology payloads, including a European Space Agency-led drill suite, to the Moon’s South Pole.
Will LUNR Stock Continue to Grow?
The global space economy is projected to reach $1.8 trillion by 2035, according to an April 2024 report by the World Economic Forum. Amid such prospects offered by the global space economy, Intuitive Machines’ growth outlook in space exploration remains strong, driven by substantial investments from both the U.S. government and the private sector.
As a key player in the expanding U.S. space industry, LUNR is well-positioned to develop advanced lunar infrastructure. Notably, its largest lander, Nova-M, is in development and expected to transport 5,000-7,500 kg of payload to the Moon. Once launched, this could drive significant revenues for the company.
Let’s take a quick look at its estimates to have an idea about its near-term performance.
Estimates for LUNR
The Zacks Consensus Estimate for first-quarter 2025 revenues implies a decline of 3.9% from the year-ago quarter’s reported figure. Moreover, the downward revision in LUNR’s first-quarter and full-year 2025 earnings estimates indicates analysts’ declining confidence in its bottom-line growth.
However, its 2025 earnings and revenue estimates reflect a year-over-year improvement.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
LUNR Stock’s Premium Valuation
In terms of valuation, LUNR’s forward 12-month price-to-sales (P/S) is 7.94X, a premium to its peer group’s average of 5.23X. This suggests that investors will be paying a higher price than the company's expected sales growth compared to that of its peers. Its forward P/S also looks stretched when compared to the median of its one-year range, 3.29.
LUNR’s Price/Sales Ratio (F12M)
Image Source: Zacks Investment Research
Risks to Consider Before Selecting LUNR
Despite the aforementioned growth opportunities, LUNR currently faces certain challenges, which one should consider before investing in the stock. One such setback is that the company is still in the preliminary stages of developing its full space infrastructure. If LUNR fails to demonstrate the reliability of its products and services through a successful lunar landing or delays completing specific space missions, its results of operations might suffer.
Moreover, the company faces industry-specific headwinds like the shortage of skilled labor, which might lead to a failure in finishing its products in the scheduled time. This might hurt its revenues.
Final Thoughts
To conclude, investors interested in LUNR stock should refrain from adding it to their portfolio, considering its premium valuation and the downward revision in its earnings estimate. However, those who already own it may continue to do so, taking into account its robust share price performance, solid revenue growth prospects and solid liquidity evident from the massive 170.6% sequential improvement witnessed in its cash balance as of Sept. 30, 2024.
Image: Bigstock
Intuitive Machines' Lunar Lander Hits a Milestone: Buy the Stock Now?
Intuitive Machine Inc. (LUNR - Free Report) recently announced that its IM-2 mission Nova-C class lunar lander, Athena, has achieved all integration milestones and is now ready for launch after being securely enclosed within SpaceX’s payload fairing.
In collaboration with SpaceX, the IM-2 mission is scheduled for a multi-day launch window beginning no earlier than February 26. This will mark Intuitive Machines’ second mission under NASA’s Commercial Lunar Payload Services (“CLPS”) initiative, which supports the Artemis lunar exploration program.
As part of CLPS, this mission will deliver science and technology payloads to the Moon’s surface that will help advance research, facilitate future human exploration and contribute to establishing a sustainable human presence on the satellite.
No doubt the latest announcement strengthens LUNR’s position as a key player in the evolving space industry that might encourage investors to add this stock to their portfolio. However, before making any hasty decision, it would be prudent to take a look at how the company has performed at the bourses over the past year, its growth prospects as well as risks (if any) to investing in the same. The idea is to help investors make a more insightful decision.
LUNR Stock Outperforms Industry, Sector & S&P 500
Intuitive Machines’ shares have surged a solid 138.2% over the past year against the Zacks Aerospace-Defense industry’s decline of 4.3%. The stock has also outperformed the broader Zacks Aerospace sector’s growth of 3.5% as well as the S&P 500’s surge of 21.8% in the same period.
Image Source: Zacks Investment Research
Other defense players, such as Embraer (ERJ - Free Report) , Archer Aviation (ACHR - Free Report) and TransDigm Group (TDG - Free Report) , have also delivered a stellar performance, with their shares surging 135.5%, 108.1% and 10.1%, respectively, over the past year.
What’s Been Pushing LUNR Stock Up?
Over the past year, Intuitive Machines has secured key contracts and achieved milestones, reinforcing its expertise in space manufacturing and lunar exploration. These developments have likely strengthened investor confidence in this stock, as reflected in the company’s share price performance.
Evidently, in January 2025, LUNR successfully delivered its Athena lander to Cape Canaveral after integrating Nokia’s Lunar Surface Communication System (LSCS) into the IM-2 mission. In the same month, it secured a NASA study contract under the NextSTEP Appendix R to advance lunar logistics, offloading and mobility solutions.
Earlier, in November 2024, LUNR partnered with Johns Hopkins APL to enhance lunar communication and navigation infrastructure. In September, the company won a $4.82 billion NASA contract for near-space communication services. In August, it secured a $116.9 million NASA contract to deliver six science and technology payloads, including a European Space Agency-led drill suite, to the Moon’s South Pole.
Will LUNR Stock Continue to Grow?
The global space economy is projected to reach $1.8 trillion by 2035, according to an April 2024 report by the World Economic Forum. Amid such prospects offered by the global space economy, Intuitive Machines’ growth outlook in space exploration remains strong, driven by substantial investments from both the U.S. government and the private sector.
As a key player in the expanding U.S. space industry, LUNR is well-positioned to develop advanced lunar infrastructure. Notably, its largest lander, Nova-M, is in development and expected to transport 5,000-7,500 kg of payload to the Moon. Once launched, this could drive significant revenues for the company.
Let’s take a quick look at its estimates to have an idea about its near-term performance.
Estimates for LUNR
The Zacks Consensus Estimate for first-quarter 2025 revenues implies a decline of 3.9% from the year-ago quarter’s reported figure. Moreover, the downward revision in LUNR’s first-quarter and full-year 2025 earnings estimates indicates analysts’ declining confidence in its bottom-line growth.
However, its 2025 earnings and revenue estimates reflect a year-over-year improvement.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
LUNR Stock’s Premium Valuation
In terms of valuation, LUNR’s forward 12-month price-to-sales (P/S) is 7.94X, a premium to its peer group’s average of 5.23X. This suggests that investors will be paying a higher price than the company's expected sales growth compared to that of its peers. Its forward P/S also looks stretched when compared to the median of its one-year range, 3.29.
LUNR’s Price/Sales Ratio (F12M)
Risks to Consider Before Selecting LUNR
Despite the aforementioned growth opportunities, LUNR currently faces certain challenges, which one should consider before investing in the stock. One such setback is that the company is still in the preliminary stages of developing its full space infrastructure. If LUNR fails to demonstrate the reliability of its products and services through a successful lunar landing or delays completing specific space missions, its results of operations might suffer.
Moreover, the company faces industry-specific headwinds like the shortage of skilled labor, which might lead to a failure in finishing its products in the scheduled time. This might hurt its revenues.
Final Thoughts
To conclude, investors interested in LUNR stock should refrain from adding it to their portfolio, considering its premium valuation and the downward revision in its earnings estimate. However, those who already own it may continue to do so, taking into account its robust share price performance, solid revenue growth prospects and solid liquidity evident from the massive 170.6% sequential improvement witnessed in its cash balance as of Sept. 30, 2024.
The company’s current Zacks Rank #3 (Hold) further supports our thesis. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.