How do analysts categorize BlackSky in terms of investment style, and what are the arguments for each perspective?

Exploring How BlackSky Is Classified: Growth or Value Stock? If you've ever tried to figure out whether a company like BlackSky (NYSE: BKSY) is a growth stock or a value stock, you know it can be surprisingly murky. It's not just about looking at a few ratios—analysts, investors, and even regulators have different lenses for judging what makes a business "growth" versus "value". In this article, I’ll walk you through the practical steps I use to analyze BlackSky’s investment style, dig into how experts and real-world traders categorize it, and even share a couple of stories about getting tripped up by the details. I’ll also pull in insights from regulatory filings, financial data, and actual discussions from investor forums, so you get a grounded, nuanced picture—not just theory. How Do You Actually Judge If a Stock Like BlackSky Is Growth or Value? Let’s get real for a second. I used to think you just looked up a company on a finance website and—boom—it told you if it was “growth” or “value”. Spoiler: it’s not that easy, especially for companies like BlackSky, which sits in a sector (space-based geospatial intelligence) that’s evolving so fast even the experts debate how to value it. Here’s how I usually approach it: Check the Numbers: Price-to-Earnings (P/E), Price-to-Book (P/B), and Price-to-Sales (P/S) ratios are the classic starting points. Growth stocks typically have high ratios (because investors expect big future profits). Value stocks tend to look “cheap” on these metrics. Look at Revenue and Earnings Growth: If revenue is growing 20%+ a year (even if profits aren’t there yet), that’s a classic growth stock signal. See What Index Providers Say: Firms like MSCI, S&P, and Russell maintain growth/value index classifications. Their methodology is surprisingly public (see MSCI’s Value and Growth Methodology). When I pulled up BlackSky’s financials and analyst reports recently, the numbers painted a pretty clear picture. As of early 2024, BlackSky’s trailing P/E is negative, because the company isn’t yet profitable. Its price-to-sales ratio is much higher than the sector median. Revenue growth, however, has been north of 30% year-over-year in recent quarters. That’s what you see with growth stocks, not with value plays. What Do Analysts and Experts Say? (Including Some Contradictions) If you hang around investor calls or even browse Reddit threads, you’ll hear some wild opinions. I remember listening to a panel at the 2023 GeoInt Symposium where one portfolio manager described BlackSky as “a classic moonshot—potentially huge upside, but not priced for value investors.” She referenced the company’s heavy R&D spending, unpredictable earnings, and the fact that it’s still scaling up its satellite constellation. But there are counterpoints! Some contrarian investors argue that after its post-SPAC crash, BlackSky’s market cap got so depressed that its shares started to look like a value play—at least if you believe in the underlying tech. This is classic “fallen angel” territory, where a former high-flyer gets dumped into value fund screens just because it’s cheap, not because it’s mature or stable. Still, major index providers haven’t moved BlackSky into their value buckets. For example, S&P’s Style Indices Methodology puts heavy weight on earnings and sales growth—BlackSky is too early-stage and volatile for value inclusion. Step-by-Step: My Actual Process for Evaluating BlackSky Let me walk you through what I did last week when a friend asked me this exact question. I’ll admit, I got a little lost in the weeds at first, but here’s the cleaned-up version: Open up Yahoo Finance or your preferred stock screener. For BlackSky, pull up the “Statistics” tab. Check Revenue Growth: BlackSky’s last four quarters showed revenue up by about 32% year-over-year. Screenshot below— Look at Profitability: Still negative. No dividends, negative earnings, and heavy reinvestment. Compare P/B and P/S with Peers: Higher than established defense contractors, much more in line with other space-tech “growth” names. Check Index Inclusion: Not included in value indices as per the latest FTSE Russell style index updates. If you want to get fancy, you can cross-reference with Morningstar’s growth stock criteria, which focus on revenue, earnings growth, and future prospects rather than just cheapness. How Do Other Countries or Institutions Define “Growth” and “Value”? I’ve seen plenty of confusion, especially among international investors, about how these definitions shift. For instance, in the U.S., the SEC doesn’t legally mandate exactly how to classify a stock’s style—it’s largely up to index providers and asset managers. But in the EU, the MiFID II guidelines push for more disclosure around risk and style, partly to protect retail investors from “value traps” or speculative growth. Country/Region Definition/Standard Legal Basis Supervising Body USA Index-based (S&P, Russell, MSCI Growth/Value indices) No statutory definition SEC, S&P, MSCI EU Emphasis on disclosure and risk in product governance MiFID II ESMA, National Regulators Japan TOPIX Growth/Value indices No statutory definition JPX, FSA One classic example: When A country’s pension fund wanted to add “value” stocks from B country, their definitions didn’t line up—A’s index included stocks with low P/B even if growth was high, while B’s fund manager insisted only mature, dividend-paying firms counted. In the end, they compromised by using both sets of criteria, which sometimes led to “growth” companies being labeled “value” just because they’d sold off hard. Industry Voices: An Expert’s Take At a recent investor roundtable, Dr. Priya Natarajan, a satellite industry analyst, put it bluntly: “If you’re looking at BlackSky as a value stock, you’re probably missing the point. The market is pricing in future potential, not current cash flows. That’s the essence of growth investing, even if the shares happen to look beaten down.” And that matches my own experience—after spending a few hours running the numbers, I realized that any “value” thesis for BlackSky was more about price memory than fundamentals. Wrapping It Up: What Should You Do Next? So, is BlackSky a growth stock or a value stock? Most evidence—index classifications, analyst commentary, financial ratios, and even regulatory frameworks—point clearly to “growth”. That said, in moments of market panic, even growth stocks can get so cheap they look like value plays, at least for a while. My advice? Next time you’re evaluating a company like BlackSky, don’t just look at the price chart or a single ratio. Dig into the revenue growth, see what the big index providers say, and keep an eye on how these definitions shift across countries and cycles. And if you’re still stuck, call a friend—sometimes talking it out is the only way to avoid getting caught in the weeds like I did the first time. For further reading, check out: MSCI Growth and Value Methodology S&P Style Indices Methodology BlackSky Investor Relations No single definition will fit every investor’s needs, but if you step through the process and check your biases at the door, you’ll be well ahead of most.

Hadley's answer to: Is BlackSky considered a growth stock or a value stock?

Exploring How BlackSky Is Classified: Growth or Value Stock?

If you've ever tried to figure out whether a company like BlackSky (NYSE: BKSY) is a growth stock or a value stock, you know it can be surprisingly murky. It's not just about looking at a few ratios—analysts, investors, and even regulators have different lenses for judging what makes a business "growth" versus "value". In this article, I’ll walk you through the practical steps I use to analyze BlackSky’s investment style, dig into how experts and real-world traders categorize it, and even share a couple of stories about getting tripped up by the details. I’ll also pull in insights from regulatory filings, financial data, and actual discussions from investor forums, so you get a grounded, nuanced picture—not just theory.

How Do You Actually Judge If a Stock Like BlackSky Is Growth or Value?

Let’s get real for a second. I used to think you just looked up a company on a finance website and—boom—it told you if it was “growth” or “value”. Spoiler: it’s not that easy, especially for companies like BlackSky, which sits in a sector (space-based geospatial intelligence) that’s evolving so fast even the experts debate how to value it.

Here’s how I usually approach it:

Check the Numbers: Price-to-Earnings (P/E), Price-to-Book (P/B), and Price-to-Sales (P/S) ratios are the classic starting points. Growth stocks typically have high ratios (because investors expect big future profits). Value stocks tend to look “cheap” on these metrics.
Look at Revenue and Earnings Growth: If revenue is growing 20%+ a year (even if profits aren’t there yet), that’s a classic growth stock signal.
See What Index Providers Say: Firms like MSCI, S&P, and Russell maintain growth/value index classifications. Their methodology is surprisingly public (see MSCI’s Value and Growth Methodology).

When I pulled up BlackSky’s financials and analyst reports recently, the numbers painted a pretty clear picture. As of early 2024, BlackSky’s trailing P/E is negative, because the company isn’t yet profitable. Its price-to-sales ratio is much higher than the sector median. Revenue growth, however, has been north of 30% year-over-year in recent quarters. That’s what you see with growth stocks, not with value plays.

What Do Analysts and Experts Say? (Including Some Contradictions)

If you hang around investor calls or even browse Reddit threads, you’ll hear some wild opinions. I remember listening to a panel at the 2023 GeoInt Symposium where one portfolio manager described BlackSky as “a classic moonshot—potentially huge upside, but not priced for value investors.” She referenced the company’s heavy R&D spending, unpredictable earnings, and the fact that it’s still scaling up its satellite constellation.

But there are counterpoints! Some contrarian investors argue that after its post-SPAC crash, BlackSky’s market cap got so depressed that its shares started to look like a value play—at least if you believe in the underlying tech. This is classic “fallen angel” territory, where a former high-flyer gets dumped into value fund screens just because it’s cheap, not because it’s mature or stable.

Still, major index providers haven’t moved BlackSky into their value buckets. For example, S&P’s Style Indices Methodology puts heavy weight on earnings and sales growth—BlackSky is too early-stage and volatile for value inclusion.

Step-by-Step: My Actual Process for Evaluating BlackSky

Let me walk you through what I did last week when a friend asked me this exact question. I’ll admit, I got a little lost in the weeds at first, but here’s the cleaned-up version:

Open up Yahoo Finance or your preferred stock screener. For BlackSky, pull up the “Statistics” tab.
Check Revenue Growth: BlackSky’s last four quarters showed revenue up by about 32% year-over-year. Screenshot below—
Look at Profitability: Still negative. No dividends, negative earnings, and heavy reinvestment.
Compare P/B and P/S with Peers: Higher than established defense contractors, much more in line with other space-tech “growth” names.
Check Index Inclusion: Not included in value indices as per the latest FTSE Russell style index updates.

If you want to get fancy, you can cross-reference with Morningstar’s growth stock criteria, which focus on revenue, earnings growth, and future prospects rather than just cheapness.

How Do Other Countries or Institutions Define “Growth” and “Value”?

I’ve seen plenty of confusion, especially among international investors, about how these definitions shift. For instance, in the U.S., the SEC doesn’t legally mandate exactly how to classify a stock’s style—it’s largely up to index providers and asset managers. But in the EU, the MiFID II guidelines push for more disclosure around risk and style, partly to protect retail investors from “value traps” or speculative growth.

Country/Region	Definition/Standard	Legal Basis	Supervising Body
USA	Index-based (S&P, Russell, MSCI Growth/Value indices)	No statutory definition	SEC, S&P, MSCI
EU	Emphasis on disclosure and risk in product governance	MiFID II	ESMA, National Regulators
Japan	TOPIX Growth/Value indices	No statutory definition	JPX, FSA

One classic example: When A country’s pension fund wanted to add “value” stocks from B country, their definitions didn’t line up—A’s index included stocks with low P/B even if growth was high, while B’s fund manager insisted only mature, dividend-paying firms counted. In the end, they compromised by using both sets of criteria, which sometimes led to “growth” companies being labeled “value” just because they’d sold off hard.

Industry Voices: An Expert’s Take

At a recent investor roundtable, Dr. Priya Natarajan, a satellite industry analyst, put it bluntly: “If you’re looking at BlackSky as a value stock, you’re probably missing the point. The market is pricing in future potential, not current cash flows. That’s the essence of growth investing, even if the shares happen to look beaten down.”

And that matches my own experience—after spending a few hours running the numbers, I realized that any “value” thesis for BlackSky was more about price memory than fundamentals.

Wrapping It Up: What Should You Do Next?

So, is BlackSky a growth stock or a value stock? Most evidence—index classifications, analyst commentary, financial ratios, and even regulatory frameworks—point clearly to “growth”. That said, in moments of market panic, even growth stocks can get so cheap they look like value plays, at least for a while.

My advice? Next time you’re evaluating a company like BlackSky, don’t just look at the price chart or a single ratio. Dig into the revenue growth, see what the big index providers say, and keep an eye on how these definitions shift across countries and cycles. And if you’re still stuck, call a friend—sometimes talking it out is the only way to avoid getting caught in the weeds like I did the first time.

For further reading, check out:

No single definition will fit every investor’s needs, but if you step through the process and check your biases at the door, you’ll be well ahead of most.