The aerospace industry is not typically regarded as a high-growth market. However, over the past few years, several innovative aerospace companies have captured significant attention with new rockets and aircraft that offer numerous advantages over their predecessors. Among them, Rocket Lab (RKLB) and Joby Aviation (JOBY) are two stocks worth considering for a buy-and-hold period of 20 years.
Rocket Lab is dedicated to developing reusable orbital rockets. The company has successfully launched its Electron rocket, which can deliver small payloads weighing up to 300 kilograms into space, and as of the time of this writing, has conducted 87 launches. Rocket Lab plans to launch its second rocket, Neutron, later this year to carry heavier payloads.
Rocket Lab’s customers include NASA, the U.S. Space Force, the Swedish National Space Agency, Capella Space, Kinéis, and BlackSky Technology. Although the company is much smaller than SpaceX, Rocket Lab has found its niche by carrying smaller payloads than its larger competitors.
Analysts expect Rocket Lab’s revenue to surge from $602 million to $1.53 billion between 2025 and 2028, driven by an increase in rocket launches and the securing of more contracts. The stock currently trades at roughly 40 times its projected 2028 sales, which may seem expensive. However, with the expansion of low Earth orbit satellite constellations and new orbital missions being launched by space agencies, the stock still has significant upside potential over the next 20 years.
Joby develops electric vertical takeoff and landing (eVTOL) aircraft as a greener, safer, and more easily landable alternative to traditional helicopters. Its S4 eVTOL can carry one pilot and four passengers, fly 150 miles on a single charge, and reach a top speed of 200 miles per hour. Unlike many other eVTOL manufacturers that use different propellers for takeoff and cruise, the S4 uses the same propellers for both tasks. This key difference reduces weight and drag, allowing it to fly faster and farther than many other eVTOLs.
Joby has not yet launched any commercial flights, but it has already gained support from major companies such as Toyota, Delta Air Lines, and Uber. Delta Air Lines and other carriers plan to bundle Joby’s short-range air taxi services into their premium “home-to-airport” tickets, while Uber is integrating Joby’s flights into its new Uber Air platform.
Analysts expect Joby’s revenue to grow from $53 million to $458 million between 2025 and 2028 as the company expands its commercial air taxi flights. Fortune Business Insights projects that the global eVTOL market will grow at a compound annual growth rate of 36.8% between 2026 and 2034. Therefore, although Joby’s stock trades at roughly 23 times its projected 2028 sales—seemingly expensive—it still has substantial room for growth over the next 20 years.
Summary: Rocket Lab and Joby Aviation represent two distinct high-potential directions within the aerospace sector—small reusable rockets and electric vertical takeoff and landing aircraft. With its proven Electron rocket and the upcoming Neutron, Rocket Lab holds a unique position in the small-payload launch market and stands to benefit from the expansion of low Earth orbit constellations. Joby Aviation, leveraging its technologically advanced S4 eVTOL and the support of strategic partners such as Toyota and Delta Air Lines, is poised to capture a share of the rapidly growing air taxi market. Although both stocks currently carry high valuations, they offer considerable growth potential for long-term investors willing to hold them for 20 years.
