The latest quarterly update from Moody's (NYSE: MCO) delivered mixed signals for investors to interpret. For the period ended March 31, the financial services intelligence giant posted an 8% year-over-year increase in quarterly revenue, while adjusted earnings per share (EPS) were up 14% to $3.83, with both metrics surpassing Wall Street estimates.

On the other hand, a revision lower in the company's full-year profit guidance overshadowed the report, adding to a volatile start for the stock in 2025. Shares of Moody's are currently down about 19% from its 52-week high at the time of writing amid renewed economic uncertainties.

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Does the recent weakness offer investors a buy-the-dip opportunity, or could it signal the potential for more downside ahead? Let's discuss what to do with Moody's stock now.

Rock-solid fundamentals

Moody's is recognized for its financial analytics technology platform that includes credit ratings, investment research, and technical market data. The company has capitalized on a global trend as corporations, financial institutions, and government agencies increasingly outsource critical parts of their investing workflow as a more cost-effective approach.

The company has captured strong demand for its cloud-based subscriptions and data licensing agreements amid the bull market in financial assets in recent years. These high-level themes were evident as Moody's started fiscal 2025 with strong performance. The company kicked off the year on a high note.

Image source: Getty Images.

With record revenue and earnings in the first quarter, the Moody's Investor Service (MIS) segment, which issues credit ratings, has been a growth driver. Momentum in global bond issuances, alongside favorable market conditions between tight credit spreads and lower interest rates as the key indicator for ratings demand, propelled Q1 MIS revenue up by 8% year over year.

Additionally, results from the Moody's Analytics (MA) group have been solid with a 9% increase in annualized recurring revenue (ARR) at the end of Q1, coupled with a 93% retention rate, suggesting durable growth. Profitability is another highlight. Moody's adjusted operating margin reached 51.7%, up 100 basis points over the past year.

Strong free cash flow has allowed Moody's to hike its dividend by 11% to the new quarterly rate of $0.94 per share, yielding 0.9%. The company has also been active with stock buybacks, including $1.2 billion remaining under an existing authorization to repurchase shares. Overall, beyond the stock market turbulence, Moody's fundamentals remain solid.

A more cautious outlook

While it was largely business as usual for Moody's at the start of the year, the company now faces the challenge of navigating a rapidly evolving operating environment. Recent changes to U.S. trade policy have rocked markets, with experts predicting disruptions to the economy, forcing some businesses to rethink their investment plans.

For Moody's, the concern is that a slowdown, particularly in global debt issuances, could directly impact its credit ratings business while limiting new growth opportunities. The company is taking these risks seriously and has tempered its full-year growth and earnings expectations.

Compared to a prior 2025 revenue growth estimate in the high single digits, Moody's now expects just a mid-single-digit percentage increase. Similarly, the full-year target for adjusted EPS guidance was lowered to a range of $13.25 to $14, from the prior $14 to $14.25 estimate issued earlier in the year.

Data source: Moody's Corp.

Despite Moody's overall solid fundamentals, including an outlook for continued profitable growth, the clear slowdown compared to stronger trends in 2024 has made it more difficult for investors to justify the stock's valuation premium. Even following the sharp sell-off from recent highs, shares of Moody's are trading at a price-to-earnings (P/E) ratio of 38, above the five-year average multiple of around 35. As such, the stock seems relatively expensive with room for the price to fall a bit further before standing out as a clear bargain.

MCO PE Ratio data by YCharts

A wait-and-see approach

I believe shares of Moody's are simply too pricey to buy today, considering its subdued outlook. There are likely enough strong points for current shareholders to continue holding, but investors watching from the sidelines may find more compelling opportunities elsewhere in the stock market that offer better value and greater upside potential.

Should you invest $1,000 in Moody's right now?

Before you buy stock in Moody's, consider this:

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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $591,533!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $652,319!*

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Dan Victor has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Moody's. The Motley Fool has a disclosure policy.

The Dow Jones Industrial Average is down 12% from its all-time high at the time of writing, as sweeping changes to U.S. trade policy usher in concerns regarding the economy's strength.

Despite these uncertainties, reliable and high-quality dividend income from a diversified portfolio can be a great option for investors to ride out stock market turbulence. By this measure, JPMorgan Chase (NYSE: JPM) and Goldman Sachs (NYSE: GS) deserve a closer look as two leading Dow Jones components, supported by robust fundamentals and global diversification that remain well-positioned to navigate any market environment.

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Let's discuss which of these financial titans is the better dividend stock to buy now.

Image source: Getty Images.

The case for JPMorgan: A fortress balance sheet

It's often said that it pays to be at the top. In this case, it's not a coincidence that shares of JPMorgan have outperformed the broader market, returning 30% over the past year. JPMorgan benefits from its dominant position as the largest U.S. bank, bolstered by a global financial services footprint.

Its size and scale, with $4.4 trillion in assets -- more than twice Goldman's $1.8 trillion total assets -- could be an advantage during economic turmoil, leveraging a broader deposit base and more diversified revenue streams to support profitability.

That was the message from JPMorgan CEO Jamie Dimon in the first quarter earnings report (for the period ended March 31), who cited "considerable turbulence" facing the U.S. economy amid looming impact of new trade tariffs, but reaffirmed that the bank's underlying business remains strong.

First quarter highlights included record trading revenues driven by market volatility, while resilient consumer spending at the start of the year boosted credit card services and auto lending. For 2025, JPMorgan expects $94.5 billion in net interest income, a 1.5% increase from last year.

The bank's recent 12% dividend increase to $1.40 per share quarterly is excellent news, resulting in a forward yield of 2.4%. With its rock-solid balance sheet, JPMorgan's steady growth and ability to consolidate market share make it a great dividend stock and a compelling portfolio addition.

The case for Goldman Sachs: More upside potential

While JPMorgan is built like a tank, Goldman Sachs stands out with its fighter jet-level sophistication and market agility. Goldman compensates for its limited exposure to consumer banking with a targeted approach in high-margin investment banking activities.

In the first quarter, Goldman set several operating and financial records, including top rankings in M&A, equity offerings, and record financing net revenue. The bank also marked its 29th consecutive quarter of capturing fee-based net inflows in asset and wealth management. Although Goldman's profile is more economically sensitive, this could be an advantage for shareholders if conditions improve, potentially driving stronger earnings growth than JPMorgan.

For bullish investors who believe recession fears are overblown, Goldman Sachs stock may offer more upside as a buy-the-dip opportunity.

Goldman has rewarded shareholders with significant dividend hikes in recent years, more than doubling its quarterly rate to $3.00 per share since 2021 and outpacing JPMorgan's dividend growth over the past five years. With a strong Q1 adjusted EPS jump of 22% from last year, there's a good chance Goldman will announce another dividend increase later this year, potentially in the double-digit range.

Furthermore, Goldman Sachs stock appears relatively undervalued with a forward price to earnings (P/E) ratio of 12 based on 2025 consensus EPS estimates, compared to JPMorgan's multiple near 13. By this measure, there's a case to be made that shares of Goldman are undervalued relative to its banking peer.

JPM Dividend Yield data by YCharts.

Decision time: Goldman is my pick

JPMorgan Chase and Goldman Sachs offer similar dividend yields and face the same macroeconomic headwinds, making it tough to choose the better dividend stock. Still, I give the edge to Goldman, believing its stock offers a better balance of value and dividend growth potential. For investors willing to ride out near-term volatility, Goldman is a great long-term buy-and-hold option in a diversified portfolio.

Should you invest $1,000 in Goldman Sachs Group right now?

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The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Goldman Sachs Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $591,533!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $652,319!*

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JPMorgan Chase is an advertising partner of Motley Fool Money. Dan Victor has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group and JPMorgan Chase. The Motley Fool has a disclosure policy.

The cutting edge of innovation runs through the rapidly evolving field of quantum computing. This technology promises to solve complex problems at unprecedented speeds, far exceeding the capabilities of classical systems.

Recent breakthroughs from industry leaders IonQ (NYSE: IONQ) and Rigetti Computing (NASDAQ: RGTI) have moved concepts of quantum mechanics from theoretical into real-world commercial applications. Quantum computing is already big business, generating rapid growth in what experts predict could represent an annual market valued at upward of $170 billion by 2040.

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Let's explore whether IonQ or Rigetti Computing is the better quantum stock right now.

Image source: Getty Images.

The case for IonQ

With a market capitalization of $5.4 billion, IonQ is the largest pure-play quantum computing stock in the market, more than double the size of Rigetti's $2.3 billion valuation.

The company stands out with its unique trapped-ion technology -- holding ions precisely in 3D space using a custom-designed ion trap to leverage electrically charged atoms as qubits, the fundamental unit of information in its quantum system that uses the principles of superposition, entanglement, and inference to process information.

Unlike superconducting qubits used by Rigetti and International Business Machines, which require cooling of the circuits to subfreezing temperatures, IonQ's approach avoids this.

Its architecture tackles a key challenge in quantum systems, where increasing the number of qubits to boost computational power leads to higher error rates and system instability. With the ability to operate at room temperature as a key advantage, IonQ's latest Forte Enterprise system, with 36 algorithmic qubits, is the company's most powerful single core quantum processor and is positioned for scalable, practical quantum solutions.

The financial trends have been impressive. In 2024, IonQ's net revenue reached $43.1 million, up 96% year over year for the period ended Dec. 31.

The company counts on several major customers representing industries that are embracing quantum computers in fields like pharmaceutical drug discovery, logistics optimization, and engineering simulations. IonQ also partnered with major cloud-computing providers such as Microsoft and Amazon to offer quantum computing as a service.

The company is not yet profitable, but IonQ's attraction as an investment is its hypergrowth trajectory. For 2025, it expects revenue to nearly double to $97 million, with management citing strong interest in its rack-mounted, data-center-friendly quantum computers.

Investors convinced IonQ is still in the early stages of a significant long-term opportunity have plenty of reasons to buy and hold the stock for the long run.

The case for Rigetti Computing

Although IonQ's trapped-ion technology may have a near-term commercial advantage, Rigetti Computing positions itself for long-term dominance through its vertically integrated business model that allows it to control everything from chip design and manufacturing to software development and cloud delivery.

The company operates Fab-1, the industry's first dedicated quantum foundry, enabling precise control over its proprietary chip fabrication, which could be a more cost-effective strategy over time. Rigetti's in-house manufacturing and modular architecture enable scalable, high-qubit-count systems, potentially surpassing IonQ's performance.

According to Rigetti, its superconducting qubits achieve ultra-fast gate speeds of 60 to 80 nanoseconds, up to four orders of magnitude faster than ion-based systems, making them ideal for applications requiring rapid quantum operations.

Despite weaker financial momentum, with Rigetti generating just $10.8 million in 2024, the company's latest 84-qubit Ankaa-3 system is expected to accelerate growth. Market optimism in Rigetti's potential is reflected in the 700% stock price gain over the past year, even outperforming IonQ's 250% return over the same period at the time of this writing. With a balance sheet cash position of $217 million as of the last report, Rigetti has the financial flexibility to pursue its strategic objectives.

Investors who believe Rigetti's superconducting quantum technology will evolve into the industry standard may find its stock has plenty of upside potential.

Decision time: IonQ has an edge

IonQ and Rigetti Computing are at the forefront of the transformative quantum computing industry. However, IonQ emerges as the better quantum stock right now, with a more compelling growth outlook.

Amid the challenging economy, I expect the stock to remain volatile, with 2025 being a pivotal year for the company to reaffirm its operational and financial strategy. For investors with a long time horizon, building a small position in IonQ through a dollar-cost averaging strategy can work within a diversified portfolio to mitigate near-term risks.

Should you invest $1,000 in IonQ right now?

Before you buy stock in IonQ, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and IonQ wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $566,035!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $629,519!*

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*Stock Advisor returns as of April 21, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dan Victor has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, International Business Machines, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Despite the extreme stock market volatility at the start of 2025, the artificial intelligence (AI) revolution is moving full steam ahead. Advances in machine learning and automation technology are rapidly reshaping the global economy, ushering in a new era of business productivity and human creativity.

At the core of this transformation are high-performance data centers, which play a critical role in the AI ecosystem. Two leading companies in this space are Super Micro Computer (NASDAQ: SMCI) and Dell Technologies (NYSE: DELL), which supply the essential server equipment and storage hardware to run AI workloads.

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Let's discuss whether Supermicro (as it is commonly known) or Dell Technologies is the better AI stock to buy right now.

Image source: Getty Images.

The case for Supermicro

Supermicro presents a remarkable growth story as an early winner in the AI boom. Even with the stock down 66% from its 52-week high at the time of writing, longtime shareholders have still enjoyed a 1,470% return over the past five years.

The company capitalizes on the demand for specialized rack-scale computer systems, which integrate power, storage, cooling, and software components to support graphics processing unit (GPU)-based AI chips from Nvidia and Advanced Micro Devices. Its technical leadership in next-generation direct-liquid cooling (DLC) technology is a key advantage, offering significant energy-efficiency gains for power-intensive data centers. Additionally, the company's U.S. manufacturing presence has become increasingly important amid trade tensions as businesses seek to secure their supply chains.

Supermicro expects revenue to reach $23.5 billion to $25.0 billion in fiscal 2025, a 62% year-over-year increase. Looking ahead, the company sees a path to $40 billion in revenue by next year, driven by growing market adoption of its DLC technology and expanding production capacity. This momentum is accompanied by improving profitability, with Wall Street analysts predicting a 17% increase in adjusted earnings per share (EPS) this year to $2.59.

On the other hand, Supermicro's success has not been without challenges. In 2024, the company faced a headline-making accounting investigation by the U.S. Department of Justice (DOJ) while its auditor resigned due to governance concerns. Favorably, the company has since cleared up some of those issues, releasing an audited 2024 annual report, while an independent special committee cleared it of misconduct allegations. Uncertainties remain, including possible DOJ sanctions, yet the attraction of Supermicro now as an investment is in this comeback story.

Investors who believe Supermicro's growth trajectory is back on track have plenty of reasons to buy shares of this AI leader.

The case for Dell Technologies

Dell Technologies' strength lies in its diversification. Generating $96 billion in revenue in fiscal 2025 (ended Jan. 31), the company is 4 times larger than Supermicro. It benefits from a broad product portfolio across enterprise-grade solutions and a consumer devices franchise.

This year, its AI-optimized server systems powering data centers have driven record earnings. For the last reported fiscal 2025, revenue increased 8% year over year, with adjusted EPS rising 10% to $8.14. Notably, the AI servers and networking segment revenue grew 54% annually, nearly matching Supermicro's momentum.

While sluggish personal computer demand has weighed on Dell's firmwide results, this segment could have a silver lining. Dell's strategic emphasis on AI-powered PCs for businesses and consumers positions it to leverage an anticipated industry-wide replacement cycle for AI-ready devices into the next decade.

Perhaps the strongest case for Dell as the better AI stock over Supermicro is its valuation. Shares trade at a forward price-to-earnings (P/E) ratio of 9.2, a steep discount to Supermicro's earnings multiple of 14.3. One interpretation is that Dell stock is undervalued, with shareholders also receiving a 2.1% dividend yield supported by its high-quality free cash flow.

Data by YCharts. PE Ratio = price-to-earnings ratio.

A tough decision between two industry leaders

I'll give Supermicro the edge as the better AI stock based on its more specialized focus on AI infrastructure hardware and leadership in liquid cooling solutions. While the stock is riskier than Dell's, its stronger growth outlook may offer more upside potential if it can overcome regulatory uncertainties. If investors recognize that the delicate macroeconomic environment is a risk to consider, Supermicro stock is a great option for investors to capture tech and AI exposure in a diversified portfolio.

Should you invest $1,000 in Super Micro Computer right now?

Before you buy stock in Super Micro Computer, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Super Micro Computer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $495,226!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $679,900!*

Now, it’s worth noting Stock Advisor’s total average return is 796% — a market-crushing outperformance compared to 155% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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*Stock Advisor returns as of April 10, 2025

Dan Victor has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy.

After a record-breaking rally in 2024 when shares of Deckers Outdoor (NYSE: DECK) soared by 82%, the stock slammed into a brick wall in early 2025 and is now down 53% from its 52-week high as of this writing.

Even as the footwear company posts strong financials, it hasn't escaped the broader stock market turbulence, with concerns about the impact of looming trade tariffs emerging as the latest headwind. Still, investors considering abandoning this footrace might be stepping away too soon.

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Here are three reasons Deckers Outdoor could be a great portfolio buy now.

1. A phenomenal growth story

Deckers Outdoor is best known for its footwear brands, including the iconic Ugg sheepskin boots and high-performance Hoka running and athletic shoes. The latter has been a game changer for the company. It is projected to generate over $2 billion in sales this year, more than doubling its size in just three years. Its unique style has driven the success, managing to cross over into the lifestyle category as a fashion phenomenon.

In its fiscal 2025 third quarter (ended Dec. 31), total net sales rose 17.1% year over year, accompanied by a 19% increase in earnings per share (EPS) to a quarterly record of $3. Hoka brand sales were even stronger, surging 24% compared to the prior-year quarter, covering the holiday shopping season. Deckers expects the momentum to continue with an ongoing expansion internationally as a key growth driver.

The results stand in stark contrast with broader industry trends, as competitors like Nike are facing declining sales while blaming weak consumer spending. By this measure, Deckers is gaining market share at rivals' expense.

Beyond the ups and downs of the stock market, Deckers' fundamentals are solid, with $2.2 billion in cash on its balance sheet cash and zero debt. Investors confident in the company's long-term potential have ample reasons to stick with this industry leader for the long haul.

Image source: Getty Images.

2. Hope for tariff relief from Vietnam

Like most footwear and apparel companies, Deckers depends on overseas manufacturers in China and Vietnam, a setup now strained by the Trump administration's sweeping tariffs: a 10% baseline tax on all U.S. imports, plus higher rates like 46% on Vietnam and 34% on China. Experts predict short-term disruptions from the tariffs -- which the administration has framed as addressing trade imbalances and economic fairness -- as companies such as Deckers are forced to pass their higher costs on to consumers.

Yet, there could be a way for Deckers to escape most of these consequences. In a message posted to social media, President Donald Trump described a "very productive call" with Vietnam's leaders, suggesting open dialogue toward a potential trade deal could be reached, with the possibility of tariffs being reduced to zero. This is key since Deckers, per its 2024 annual report, sources most of its footwear from Vietnam.

While nothing has been confirmed, if tariffs are rolled back sooner rather than later for this crucial Southeast Asian manufacturing hub, it could restore the market's confidence in Deckers' growth, a catalyst for the stock to rebound.

3. A bargain valuation

The sharp decline in the company's stock price since Deckers' last earnings report may be attributed to market concerns that profit margins have peaked, sparking skepticism about the company's ability to sustain its exceptional growth. If macroeconomic conditions worsen, investors face the risk of a sales slowdown that could force a reset of earnings expectations.

Nevertheless, the silver lining of the recent sell-off is that the stock's valuation has fallen to a seeming bargain, trading at just 16 times its estimated full-year EPS as a forward price-to-earnings ratio (P/E). Though uncertainty clouds how earnings will evolve into fiscal 2026, that alone doesn't justify the steep discount to peers like Nike and On Holding, which trade at a forward P/E of 27 and 33, respectively, despite facing similar challenges. Deckers stands out as the value pick in the group.

DECK PE Ratio (Forward) data by YCharts.

Final thoughts

What I like about Deckers Outdoor as an investment is its compelling mix of brand momentum, strong growth, and value that position it to reward shareholders over the long run. I'm bullish and believe the stock represents an excellent buy-the-dip opportunity and could be a great option for diversified portfolios.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $244,570!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $35,715!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $461,558!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

Continue »

*Stock Advisor returns as of April 5, 2025

Dan Victor has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Deckers Outdoor and Nike. The Motley Fool has a disclosure policy.

It's been just over a year since Intuitive Machines (NASDAQ: LUNR) made history as the first private company to achieve a successful lunar landing. The mission marked a milestone in commercial space exploration, but more importantly, it solidified the company's position as a leader in the burgeoning industry with proven technical capabilities.

Despite a strong growth outlook fueled by several high-profile contracts, shares of Intuitive Machines have cratered at the start of 2025, trading down 60% year to date at the time of this writing amid the broader stock market sell-off.

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With the stock now trading below $8, is it a buy? Here's what you need to know.

A leader in space exploration

Intuitive Machines does not launch rockets itself but instead designs, builds, and operates spacecraft, such as its lunar landers. For its groundbreaking February 2024 IM-1 mission, the company's Odysseus Nova-C lander rode a SpaceX Falcon 9 rocket -- an approach that allows it to concentrate on its core strengths in payload delivery, lunar surface infrastructure, mobility and robotics, satellite operations, and data communications services.

The company aims to advance its technology steadily, eyeing a space infrastructure market opportunity that experts project will grow to $1.8 trillion by 2035. The early financial results have been impressive. In 2024 (covering the full year ended Dec. 31) Intuitive Machines' total revenue reached $228 million, nearly triple the 2023 result amid multiple contract awards and a close partnership with NASA, ending the year with a $328 million backlog.

Image source: Getty Images.

Projects fueling Intuitive Machines' growth include the Commercial Lunar Payload Services program, which builds on IM-1's success with IM-2's South Pole landing earlier this year to prospect for water. Two more lunar missions are slated through 2027. There is also the ongoing Omnibus Multidiscipline Engineering Services contract that further supports NASA with broad operational expertise.

For 2025, the company projects revenue of $250 million to $300 million, a solid 20% annual increase. While Intuitive Machines is not yet profitable, management's guidance suggests a positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) run rate by the end of the year, and for 2026, an encouraging sign of more sustainable fundamentals. This is backed by a robust balance sheet, with $385 million in cash and zero debt as of March 13, ensuring ample liquidity to drive its ambitions.

Catalysts on the horizon

One of the attractions of Intuitive Machines as an investment is that, despite uncertainties over the U.S. economy's strength and the looming impact of Trump administration trade tariffs, its business profile and operating tailwinds remain largely insulated from these dynamics. Its multiyear NASA contracts, funded at the federal level, ensure project continuity regardless of how consumer spending or GDP evolves, providing valuable stability in the early stages of a fast-evolving space exploration industry. While a severe economic downturn could pressure NASA to reassess future projects or limit private sector opportunities, it's business as usual for now.

Looking ahead, key catalysts could reignite investor enthusiasm and boost Intuitive Machines' battered stock price. The IM-3 mission, set for early 2026, will launch the first of five data relay satellites under the NASA Near Space Network contract, marking its entry into lucrative high-bandwidth transmission solutions as part of its space infrastructure-as-a-service offerings.

Later in 2025, NASA's decision on the $4.6 billion Lunar Terrain Vehicle Services contract, spanning 15 years through 2040, could be a game-changer for Intuitive Machines, one of three finalists. Additional private sector engagements and deployment announcements would likely further bolster its growth trajectory to lift investor sentiment.

Decision time: Buy the dip

I'm bullish on Intuitive Machines and see the recent stock price weakness as a chance for investors to buy the dip before a potential rebound. With the stock trading approximately 5 times its estimated 2025 revenue, the forward price-to-sales (P/S) ratio highlights compelling value for an industry pioneer with substantial long-term potential. The rally from here may not shoot straight into orbit, but the company has the pieces in place to reward shareholders over the long run. A small position in the stock, built through dollar-cost averaging to manage near-term volatility, could work well within a diversified portfolio.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $244,570!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $35,715!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $461,558!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

Continue »

*Stock Advisor returns as of April 5, 2025

Dan Victor has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.