Intuitive Machines (NASDAQ:LUNR), a leader in aerospace and defense, experienced a slight dip in its stock price following a mixed-earnings report for the second quarter. Despite this, contrarian investors may find potential in this rising star of the space economy.
Yesterday, Intuitive reported a loss per share of 5 cents, beating expectations of a 14-cent loss. However, this was a decline from the 35 cents per share earnings in the same quarter last year. On the revenue front, the company generated $41.41 million, slightly below estimates but a significant improvement from $17.99 million in Q2 2023.
While analysts may not be fully satisfied with the financial results, the space economy presents a multi-trillion-dollar opportunity, offering significant upside potential for LUNR stock. With only a 1.3% decrease in stock price, bullish investors may see a chance for a rebound.
Intuitive Machines Stock Could Fill the Gap
LUNR stock caught the attention of Barchart’s screener for unusual stock options volume, with a significant increase in total volume and call volume outweighing put volume. The focus on the $4 call option aligns with the stock’s closing price of $3.67, aiming for an intuitive target of $4.
If LUNR stock surpasses $4, the next target could be $5 to fill the previous support line. This strategic move by investors could drive the stock price higher.
Trade of the Day: Buy LUNR Stock with the Aim of Hitting $5
Investors looking for short-term gains may target $4, while those with a longer view could aim for $5. With LUNR stock trading at a low sales multiple compared to the industry average, the potential for growth is promising. Analysts are forecasting a substantial revenue increase by year-end, supporting a higher valuation for the stock.
While investing always carries risks, setting a stop-loss at $3.32, around 10% below the current price, may help manage potential losses. Overall, the outlook for LUNR stock suggests opportunities for investors interested in the space economy.