LUNR Stock Rises 75.4% in the Past Year: What Should Investors Do?

Intuitive Machines, Inc. LUNR stock has gained 75.4% in the past year, outperforming both the Zacks Aerospace-Defense industry’s decline of 10.4% and the broader Zacks Aerospace sector’s decline of 8.7%. It also came above the S&P 500’s return of 16.9% in the same time frame.

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Other industry players, such as Lockheed Martin LMT and General Dynamics GD, have also delivered a similar stellar performance in the past year. Shares of LMT and GD have risen 11.4% and 7%, respectively, in the said period.

LUNR’s recent gains may draw investor attention. However, before investing, it is important to evaluate whether the company’s fundamentals are strong enough to support sustained long-term growth or if the recent rally may be temporary. A closer look at LUNR’s growth stability can help investors make a more informed decision.

Tailwinds for LUNR

Intuitive Machines is benefiting from growing demand for space infrastructure, satellite communications and Earth observation solutions, supported by increasing government and commercial investment in space. Recent contract wins and program awards highlight the company’s expanding customer base and growing capabilities across multiple space applications.

In September 2026, Intuitive Machines announced an order to build two IM 300 series platforms for a new, undisclosed customer. The award expands the customer base for its spacecraft platforms and highlights growing demand for rapidly produced, mission-configurable spacecraft.

In August 2026, the company was selected by NASA’s Jet Propulsion Laboratory to provide the spacecraft platform, system-level integration and mission solutions for the EAGLE-VSWIR Earth observation mission. It also received authorization to begin work on a multi-satellite communications infrastructure program with an anticipated value of more than $600 million. These awards should broaden Intuitive Machines’ exposure beyond lunar missions and support growth across government and commercial space markets.

With a record $1.8 billion backlog at the end of the second quarter and $920 million of awards booked during the quarter, Intuitive Machines appears well-positioned to capitalize on rising demand for space infrastructure, communications and mission services.

Estimates for LUNR’s Sales and Earnings

The Zacks Consensus Estimate for LUNR’s 2026 sales implies year-over-year growth of 338.9%. The consensus estimate for its 2026 earnings indicates a year-over-year decrease of 59.5%.

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The downward revision in its 2026 and 2027 earnings over the past 60 days suggests investors’ decreasing confidence in this stock’s earnings generation capabilities.

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LUNR’s Valuation

In terms of valuation, LUNR’s forward 12-month price-to-sales (P/S) is 3.16X, a premium to the industry average of 2.29X. This suggests that investors will be paying a higher price than the company's expected earnings growth compared with its industry average.

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Lockheed Martin and General Dynamics are trading at a discount in comparison with LUNR. LMT’s forward 12-month P/S is 1.45X, while GD’s forward 12-month P/S is 1.66X.

Liquidity Position of LUNR

LUNR has a current ratio of 1.66. The ratio, being more than one, indicates that LUNR possesses sufficient capital to pay off its short-term debt obligations.

Headwinds for LUNR

Intuitive Machines continues to face profitability challenges as investments in lunar missions, spacecraft technologies and space infrastructure weigh on near-term earnings. While these investments support long-term growth, they could continue to pressure margins and cash flow.

The company also operates in a highly competitive and capital-intensive industry, where rising development costs, mission delays and potential launch failures could affect financial performance. Supply-chain disruptions and labor shortages across the aerospace and space industries also remain potential challenges, potentially leading to higher costs and production delays. Larger aerospace and defense companies such as Lockheed Martin and General Dynamics continue to face similar supply-chain and workforce pressures, reflecting broader industry-wide challenges.

In addition, Intuitive Machines is exposed to changes in government contract funding, shifting budget priorities and delays in mission execution, which could weigh on future growth and profitability.

What Should an Investor Do Now?

Intuitive Machines is benefiting from strong demand for space infrastructure, satellite communications and Earth observation solutions. Recent contract wins and a growing backlog support its long-term growth prospects. However, ongoing losses, high investment needs, execution risks and a valuation above the industry average could limit near-term upside.

Analysts have also lowered their 2026 and 2027 earnings estimates over the past two months, pointing to continued pressure on profitability.

LUNR currently carries a Zacks Rank #3 (Hold). Existing shareholders may consider holding the stock, while investors looking to initiate a position may prefer to wait for a better entry point.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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