After the Russian invasion of Ukraine and the sanctions it faces as a result, the idea of a second space race has resurfaced. Russia plans to sever its 20-year-long space partnership with the U.S and hinted at building its own space station as early as 2028. In addition, China is already constructing its own space station.

Of course, the U.S is still ahead in space technologically. However, American lawmakers are unlikely to stand idle while others catch up, especially as Russia and China deepen their space cooperation. The CHIPS Act will already be extending NASA’s authorization to operate the ISS by six years, and future bills aimed at competing with China could increase space funding even more.

Even if you are not interested in the current geopolitical situation, I believe it is wise to invest in the following five best space stocks as the government could increase space funding.

Best Space Stocks: Raytheon Technologies (RTX)

Raytheon Technologies (NYSE:RTX) is an American conglomerate that manufactures various defense products and provides intelligence services for the U.S government. It is among the most prominent military contractors and primarily focuses on the aerospace industry, which includes space.

The company recently announced its plans to acquire a U.K.-based space company called Northern Space and Security, signifying that Raytheon is looking to be more involved with space. The company already has a subsidiary called Raytheon Intelligence and Space, with over $3.57 billion in sales.

In addition, Raytheon’s financials have continued to grow despite a decline in GDP and increasing inflation. In the Q2 quarterly report, year-over-year (YOY) net income increased by 25% to $1.3 billion, and revenue increased by 3% to $16.3 billion.

Virgin Galactic (SPCE)

Virgin Galactic (NYSE:SPCE) is a company that focuses on commercial space flight and space tourism. It currently makes a majority of its revenue through providing engineering services and carrying payloads. However, the company seeks to generate revenue by selling tickets to space tourists.

It may not be the most profitable business for now as there have only been around 700 customers signed up. However, costs could decrease significantly in the long term as the company scales up with more spaceports and frequent flights.

It could be a good time to invest in SPCE in the short term as well, as the stock recently bottomed at $5.60 after declining more than 71% in the last year. Virgin Galactic stock is now in an uptrend. The company’s deal with Boeing’s (NYSE:BA) subsidiary and recovering financials are fueling the uptrend.

Best Space Stocks: Maxar Technologies (MAXR)

Maxar Technologies (NYSE:MAXR) manufactures satellites and provides satellite-based commercial and non-commercial services. Satellites are essential for the military and the civilian space industry, and the government regularly awards contracts to the company. So far, MAXR stock has been in a downtrend this year. However, Maxar could be on track to turn things around.

The stock market has been improving since May, and the company has been awarded several contracts since Q1. Thus, Maxar could surprise in the coming quarters. Even if it does not manage to do so, I believe MAXR stock will still be profitable in the long term as spending on surveillance technologies continue to increase.

Boeing (BA)

Boeing produces and sells commercial and military aerospace hardware and telecommunications equipment. It is the world’s largest passenger aircraft manufacturer by market capitalization. Boeing regularly participates in NASA projects and is the second-largest contractor for the U.S Air Force.

For now, the most significant issue for Boeing is its financials. The company reported a loss of over $1.22 billion in Q1 and revenue decreased by 8% to $13.99 billion.

However, I expect that it is a good time to be buying Boeing stock despite short-term turbulence as the Federal Aviation Administration has given the company clearance to restart deliveries of the 787 Dreamliner. With things back in motion, I believe the company can make a comeback in its financials.

Best Space Stocks: Lockheed Martin (LMT)

Lockheed Martin (NYSE:LMT) is the largest defense contractor in the world. The company makes high-tech military hardware, primarily in the aerospace field, such as the F-35. I believe LMT stock is a must-buy, especially if you are looking to invest in the long term.

Lockheed Martin will likely be the largest beneficiary of the war in Ukraine as NATO ramps up defense spending. At the end of July, the State Department approved an $8.4 billion F-35 sale to Germany, and I believe more deals will come.

On the date of publication, Omor Ibne Ehsan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.