A conference room in Washington this summer brought together members of Congress, former military officials, and scientists to discuss unidentified anomalous phenomena. The group gathered to hear about UFOs, though government agencies often prefer the term UAP to avoid the baggage associated with the older label. One attendee, a career investor who studies markets before trends become obvious, listened to discussions about extraordinary speed and unconventional propulsion. The question that kept running through their mind was whether such capabilities could be reproduced and if development is already underway.
What Is Being Built Behind the Curtain?
The United States’ defense budget for this fiscal year tops $1 trillion, with a segment earmarked for classified research. In the 2026 fiscal period, the Air Force reported roughly $54.6 billion in secret spending, and estimates for 2027 anticipate that number rising past $74 billion, while the Space Force’s classified budget alone is expected to surge to about $17.3 billion – almost three times its current level. History demonstrates that new technologies have often originated from such concealed programs. The Defense Advanced Research Projects Agency, founded in 1958 after the Soviet launch of Sputnik, has been responsible for innovations ranging from the early internet prototype to GPS navigation and stealth capabilities, all of which once seemed like pure science-fiction.
Lockheed Martin Corp. (LMT) and its Skunk Works division also illustrate the speed of development in classified programs. Born during World War II, Skunk Works was given freedom to bypass bureaucracy. It designed and built the prototype for America’s first jet fighter in just 143 days. The division later produced the U-2 spy plane and the SR-71 Blackbird. Engineers were figuring out how to build these aircraft long before most Americans knew they existed. The technology seen today may not represent the limits of what is already being developed.
This hidden investment environment is expanding into orbit. NASA plans to return to the Moon as early as 2028 and ultimately go to Mars. Private companies are building rockets, satellite networks, and communications systems at a pace difficult to imagine a decade ago. SpaceX Technologies Corp. (SPCX) and Blue Origin are playing key roles, along with traditional aerospace companies and smaller suppliers. The new space race will require advanced materials, semiconductors, sensors, communications equipment, and propulsion systems. McKinsey estimates the global space economy could grow from about $630 billion in 2023 to $1.8 trillion by 2035. Investors who focus on the companies making sure rockets can fly rather than just the launchers themselves may find opportunities.
Read Also: AI chip stocks rise as trade wakes up
Carpenter Technology Corp. (CRS) exemplifies this strategy. The company does not launch satellites or build lunar landers but specializes in high-performance alloys and specialty materials used in aerospace and defense. Carpenter has produced components for NASA’s Mars Rover. With a new generation of military aircraft, spacecraft, and space infrastructure coming down the pipeline, the need for these specialized materials should grow. While Carpenter has a $20 billion market cap, it is not a household name. Thanks to a quantitative Stock Grader system, the company was added to a service’s watchlist in August 2023. Since then, it has gained roughly 600%.
The New Space Race
Earlier this year, NASA carried astronauts around the Moon for the first time in more than 50 years. That mission was only one step in a much larger campaign. Companies like SpaceX Technologies Corp. (SPCX) and Blue Origin will play key roles. So will traditional aerospace companies, military contractors, and smaller suppliers that most investors have never heard of.
A 600% Gain Could Be Just the Beginning…
This is where Carpenter Technology Corp. (CRS) enters the discussion. The firm does not build rockets, launch satellites or construct lunar landers; instead, it focuses on high-performance alloys and specialty materials that are critical for aerospace and defense applications, where extreme heat, pressure, vibration and stress are routine. Carpenter has already fabricated parts for NASA’s Mars Rover, and as military aircraft, spacecraft and space-related infrastructure become increasingly sophisticated, demand for such specialized materials is expected to rise.
Leave a Reply