2 Space Stocks Down More Than 50% That Could Be the Best Buys of Q4

AST SpaceMobile (ASTS) and Rocket Lab (RKLB) have both experienced more than a 50% decline from their peak prices. Despite this, analysts believe their innovative growth strategies could make them some of the best space stocks to invest in during Q4. AST SpaceMobile has taken a significant hit, dropping around 69% since its May 2026 high, but the sell-off hasn't eliminated its potential.

The company is gaining momentum as it nears commercial service, with Bank of America projecting initial intermittent coverage in the U.S., Canada, Japan, the U.K., and Saudi Arabia by the end of 2026. AST also benefits from strong partnerships with major mobile network operators, including AT&T, Verizon Communications, and Rakuten, which have over 3 billion subscribers combined.

The company is also expanding its satellite constellation, with 13 satellites launched in August and more planned. However, AST faces risks related to execution, competition, and funding requirements. Its current price-to-sales ratio of 98 times suggests the market remains optimistic about its growth potential. On the other hand, Rocket Lab's shares have plummeted more than 60% from their May 2026 record high.

However, the company has a revenue-generating business through launch services and space systems. In Q2 of 2026, Rocket Lab reported record revenue of approximately $234 million, a 62% increase year-over-year. The company's backlog also reached a record $2.4 billion, up 137%. Rocket Lab's third-quarter results are set to be released on November 9, giving investors a chance to evaluate if the company can maintain this growth trend.

Additionally, Rocket Lab announced an acquisition of Iridium Communications, which could broaden its role in the satellite communications industry and open up new opportunities in various space-related applications. Despite the pushback on its planned Neutron rocket launch to 2027, any progress in advancing the timeline could boost investor confidence.

While there is still uncertainty about potential delays and increased costs, analysts remain optimistic about the stock, with target prices indicating a potential upside of 10% to 157%. The stock is currently priced at about 41 times sales, which could present an opportunity for investors seeking long-term growth in the space sector.

Both AST SpaceMobile and Rocket Lab have experienced sharp declines, but they offer potential entry points for investors looking to capitalize on their long-term growth prospects in satellite-powered connectivity, launch services, and space systems.