As SpaceX prepares for a monumental initial public offering, the aerospace sector has captured significant market attention. Amidst this fervor, some analysts believe stocks like Intuitive Machines and Redwire may present undervalued opportunities.

Intuitive Machines Inc (LUNR)

Intuitive Machines is a leader in commercial lunar services, focusing on lunar landing and exploration. The company has recently secured substantial contracts, building an order backlog of $1.1 billion. For the first quarter of 2026, revenue reached $186.7 million, nearly triple the figure from the same period last year, with full-year revenue guidance projected between $9 and $10 billion.

Redwire Corp (RDW)

Redwire specializes in space infrastructure technology, with products ranging from deployable solar arrays and robotic arms to in-space manufacturing systems. The company is expanding its defense business, reporting first-quarter 2026 revenue of $96.97 million, a nearly 58% year-over-year increase. Its order backlog stands at $498 million, up 71% from the previous year. Redwire also secured a $15 million follow-on order from the U.S. Army for its Stalker drone, marking the third such contract within eight months.

Against the backdrop of SpaceX's impending listing, these two companies are viewed by some analysts as more cost-effective investment choices. Redwire currently boasts a market capitalization of approximately $4 billion, while Intuitive Machines, with its central role in NASA's Commercial Lunar Payload Services program, is establishing critical infrastructure in near-Earth space.

However, the aerospace sector has recently faced headwinds. A rocket test explosion at Blue Origin and news of SpaceX's valuation being revised down from $2 trillion to $1.8 trillion have led to pullbacks in space stocks, including Intuitive Machines and Redwire. A Zacks analysis report noted that earnings estimate trends for both stocks are currently downward, assigning Redwire a "Sell" rating and Intuitive Machines a "Strong Sell" rating.

Despite this, analysts suggest that with continued global investment in lunar exploration, space infrastructure, and defense technology, the long-term growth potential of these companies within the aerospace supply chain remains noteworthy. For investors looking to gain exposure to the space sector, the heightened interest driven by SpaceX's IPO may offer a chance to reevaluate these under-the-radar opportunities.