Intuitive Machines Surges 56% in a Year: How to Play the Stock Now?

Core Insights - Intuitive Machines, Inc. (LUNR) has experienced a significant share price increase of 55.5% over the past year, outperforming the Zacks Aerospace-Defense industry and broader market indices [1][2][3] Company Performance - LUNR's strong performance is attributed to its established position in lunar space products and services, along with increased funding from the U.S. government for space exploration [1][4] - The company has secured multiple contracts, including a study contract from NASA for lunar logistics and additional contracts for Direct-to-Earth services, which have contributed to its growth [5][6] Market Opportunities - The space economy is projected to reach $1.8 trillion by 2035, providing substantial growth opportunities for companies like Intuitive Machines [7] - LUNR is developing its largest lander, Nova-M, which is expected to generate significant revenues upon launch [7] Financial Backlog - Intuitive Machines ended 2024 with a record backlog of$328.3 million, reflecting a 22% year-over-year growth, indicating strong revenue-generation potential [8] Revenue Estimates - The Zacks Consensus Estimate for LUNR's first-quarter 2025 revenues indicates an 18.7% decline year-over-year, while the full-year 2025 estimate shows a 19.2% growth [11] - The company is expected to improve its loss figures in 2025 and 2026, although there are downward revisions in earnings estimates, suggesting some analysts' declining confidence [11][13] Valuation Metrics - LUNR's forward price-to-sales (P/S) ratio is 4.92X, which is higher than the peer group's average of 3.78X, indicating a premium valuation [14] - Comparatively, industry peers TransDigm and Rocket Lab also trade at premium valuations, with P/S ratios of 15.38X and 8.44X, respectively [16]