Dear Investor,
SpaceX just crossed 10,000 Starlink satellites in orbit. It's filing for the largest IPO in history. And it's targeting June.
That changes the math for every public space company.
Here's why: when SpaceX prices at $1.5 trillion on $24 billion in revenue, it sets a new valuation floor for the entire sector. Stocks currently trading at a steep discount to that benchmark suddenly look mispriced.
We found seven of them.
7 Space Stocks to Own Before SpaceX Goes Public — Free Report
Best,
The Trading Tips Research Team
Karman Tanks 14%: Opportunity or Warning for This Defense Darling
Author: Leo Miller. Date Posted: 3/27/2026.
Key Points
- Defense stock Karman took the market by storm in 2025, with the company growing to a market capitalization of above $10 billion.
- After a 14% post-earnings drop, is there a clear road to recovery ahead?
- A long-term continuation of defense spending increases underpins the stock's valuation.
- Special Report: Elon Musk already made me a "wealthy man"
In 2025, Karman (NYSE: KRMN) was one of the market's hottest stocks. Shares finished the year near $73, up more than 300% from their IPO price of $22. The new year has been more mixed: the stock is still up over 15% in 2026 but about 25% below its January all-time high.
Shares plunged nearly 14% in a single session after Karman's most recent earnings report.
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👉 Unlock the ticker now and get it completely free.Karman supplies mission-critical components for rapidly growing defense technologies. The company's 2025 revenue growth ranked among the highest in its industry, and it posted impressive margins.
Against that backdrop, is there an opportunity in Karman shares? Let's examine the company's latest report.
Karman Posts Top-End Growth with Strength Across Segments
In fiscal Q4 2025, Karman reported revenue of $134.5 million, a year-over-year increase of just over 47% that modestly beat estimates. For the full year, revenue rose nearly 37% to $471.5 million. Among more than 20 U.S. aerospace and defense stocks with market caps above $10 billion, Karman's full-year growth rate was the second highest — behind only Rocket Lab (NASDAQ: RKLB), which grew 38%.
All of Karman's segments posted strong growth in the quarter:
- Q4 Hypersonics & Strategic Missile Defense Growth: +41.8%
- Q4 Space and Launch Growth: +24.6%
- Q4 Tactical Missiles & Integrated Defense Growth: +77.0%
For the full year, the firm delivered a gross margin of 40% and an operating margin of 15.5%. Those metrics ranked in the top five and top 10, respectively, within the peer group. Karman's operating margin also contrasts sharply with Rocket Lab's -38% in 2025.
Adjusted earnings per share (EPS) for the quarter nearly quadrupled year over year, rising from $0.03 to $0.11. Full-year adjusted EPS nearly tripled from $0.13 in 2024 to $0.37 in 2025. The Q4 $0.11 result was in line with expectations.
One of the company's preferred profitability measures, adjusted EBITDA margin, climbed 230 basis points year over year in Q4 to 31.2%, and it increased 10 basis points for the full year to 30.8%.
Robust Long-Term Defense Spending Is Vital to KRMN's Outlook
Karman's results are strong — top-of-the-industry growth with profit margins that beat many larger competitors. Yet the stock trades at a forward price-to-earnings ratio of roughly 130x, implying the market is pricing in several years of sustained high growth and margin expansion.
The company benefits from robust demand across key defense verticals, but the critical question is how long that demand will persist. Karman's roughly $800 million backlog provides solid near-term visibility (about 1.7 times 2025 revenue), but it does not extend visibility five to ten years into the future.
While Karman's competitive products are reflected in its growth and margins, a highly bullish view of long-term defense spending is likely required to justify the current valuation.
So what is Karman saying, and what do external developments indicate?
Karman Touts "Generational" Demand Increase as Conflicts Rage
Karman expects an even stronger 2026, projecting midpoint revenue growth of 53%. The company forecasts a modest contraction in adjusted EBITDA margin to about 29.5% as a result of recent acquisitions.
The company says it is in the midst of a "generational" increase in demand across missiles, interceptors, hypersonics, unmanned aerial systems, maritime defense, and space and launch. Management added, "This is a demand environment that we expect to persist through the end of the decade and beyond," and cited potential growth vectors such as the "Golden Dome."
Geopolitical tensions appear to be rising. The White House is seeking $200 billion in additional funding related to the Iran conflict — pending congressional approval, roughly a 24% increase compared with the Pentagon's previously approved $838.7 billion annual budget.
Many European NATO countries have committed to substantially increasing defense spending as a share of gross domestic product, and those rearmament efforts are still in early stages. A potential U.S.–China conflict over Taiwan is another risk that could boost long-term defense demand.
These dynamics favor Karman, but the company remains a relatively risky investment because of its valuation. The large post-earnings drop — despite strong results and guidance — underscores investor sensitivity to execution and outlook.
Analysts remain largely bullish. The MarketBeat consensus price target near $117 implies more than 30% upside from current levels. Two price targets updated after the earnings release average $126, suggesting potential upside of over 40%.
HP Is Positioning Itself for the AI Gold Rush's Second Act
Reported by Jeffrey Neal Johnson. Article Posted: 3/25/2026.
Key Points
- HP Inc. is strategically pivoting to meet the massive demand for AI-powered workplace devices and secure enterprise hardware.
- Shares present a compelling value opportunity, trading at a significant discount compared to the broader market.
- The company provides a robust and growing income stream for shareholders through its consistent dividend payments and share buyback programs.
- Special Report: Elon Musk already made me a "wealthy man"
The market's attention has been captured by the meteoric rise of companies powering the artificial intelligence (AI) boom. Semiconductor and software firms have seen valuations surge as they build the digital infrastructure for this new era.
That initial pick-and-shovel phase has created immense wealth but pushed valuations to levels that leave many investors searching for a more grounded entry point. The key question becomes: after the initial AI gold rush, where is the sustainable value?
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👉 Unlock the ticker now and get it completely free.With the foundations of AI now being laid, a second, more practical wave is forming. This next phase won't be confined to massive data centers; it will unfold on every desk in offices around the world.
To fully harness AI, businesses will need a new generation of intelligent, secure, and powerful hardware. That sets the stage for a large corporate upgrade cycle and creates an opening for legacy companies that build the tools of modern work. In that vein, HP Inc. (NYSE: HPQ) is positioning itself to benefit, offering a value-driven way to invest in the tangible application of AI.
Rebuilding the Office: HP's AI-Powered Arsenal
The shift toward AI-powered operations makes a hardware refresh cycle not just likely but inevitable. The idea of the AI PC is central to this transition. Running AI applications on a user's device offers important advantages for businesses: better data security by keeping sensitive information off the cloud, faster performance for real-time analysis, and reduced latency.
As companies compete on efficiency, equipping workforces with these next-generation tools will become necessary, driving a multi-year replacement cycle for a global fleet of commercial computers.
HP has moved aggressively to meet this coming demand, using its recent HP Imagine 2026 event to lay out a blueprint for the AI-powered workplace. The strategy relies on several key innovations:
- AI-Powered Commercial PCs: HP is shipping a new portfolio of high-performance PCs engineered for demanding local AI workloads. Competitors such as Dell (NYSE: DELL) are also gaining momentum, validating the scale of the impending hardware upgrade and indicating growing market-wide demand.
- Quantum-Resistant Security: HP introduced a new LaserJet printer portfolio with quantum-resistant security to guard against advanced cyber threats that could arise with quantum computing. For corporate buyers where security is paramount, this future-proofing can be a key differentiator and support premium pricing.
- An Intelligent Ecosystem: Through software like HP IQ, the company is building a connected experience that lets devices work together intelligently. That creates opportunities for higher-margin software and services revenue and helps lock customers into HP's ecosystem beyond a one-time hardware sale.
Why Wall Street's Caution Creates Opportunity
While HP is building hardware for the future, its stock valuation still looks rooted in the past. That disconnect creates the investment opportunity. HP's price-to-earnings (P/E) ratio was a modest 7.5 in late March — a fraction of the S&P 500's average, which often sits above 20. In other words, HP trades at a substantial discount to the broader market.
Beyond its low valuation, HP offers a meaningful income component. The stock currently yields about 6% — roughly $1.20 per share annually — supported by a long track record of dividend increases. HP has also returned capital through sizeable share buybacks. That shareholder-friendly approach contrasts with the consensus analyst rating of Reduce, where only two of 17 analysts assign a Buy rating. Much of this caution reflects near-term headwinds, such as cyclical memory-chip costs pressuring margins across the industry.
Notably, elevated short interest shows many investors are betting against the stock. For bulls, however, high short interest can be constructive: it increases the potential for a short squeeze if positive news forces short sellers to cover, which can push the stock higher quickly. This pessimistic sentiment is a major reason for the current undervaluation and may create an opportunity for patient investors ahead of broader recognition of HP's AI catalyst.
A Unique Blend of Value, Income, and Growth
AI adoption in the enterprise is an active transition, and HP is supplying many of the essential tools. Its strategic move into AI-native PCs and enterprise-grade security positions the company to capture a durable growth trend that could meaningfully reshape revenue and profit streams over time.
The investment case rests on three pillars: (1) a strategic pivot into a large growth market, (2) a stock trading at a discount to peers, and (3) a strong, growing income stream for shareholders.
Short-term sentiment remains cautious, but the fundamentals tell a different story. For investors seeking a sensible, high-yield entry into the practical phase of the AI revolution, HP offers a compelling mix of value, income, and long-term growth potential.
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