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Mission Launches Fuel Rocket Lab's Rally: Should You Buy the Stock Now?
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Key Takeaways
RKLB launched three significant missions since March, including its 65th Electron rocket for BlackSky in June.
The stock surged 66.2% in three months, beating its industry, sector and the broader market.
Despite growth, RKLB trades at a premium and faces high debt and execution risks tied to tech investments.
Rocket Lab USA, Inc. (RKLB - Free Report) has recently launched several successful missions, which involve deploying satellites to Earth orbit using its Electron space vehicle. Evidently, at the onset of June 2025, RKLB launched its 65th Electron rocket to deploy Earth-imaging satellites for real-time space-based intelligence company, BlackSky.
In May, Rocket Lab launched the third mission for its Japanese customer, Institute for Q-shu Pioneers of Space, Inc. (iQPS). In March, the company deployed eight satellites for Germany-based global wildfire and detection company OroraTech.
These missions, apart from showcasing Rocket Lab's increased launch cadence, also demonstrate the company’s efficiency in conducting frequent, reliable and dedicated small orbital launches for satellite operators with 100% mission success. Such back-to-back launch missions must have been boosting investors’ confidence in RKLB lately, as evident from its three-month price performance.
RKLB Outperforms Industry, Sector & Market
Rocket Lab’s shares have surged an impressive 66.2% in the past three months, outperforming the Zacks aerospace-defense industry’s gain of 18%. It has also outpaced the broader Zacks Aerospace sector’s rise of 21.8% as well as the S&P 500’s gain of 7.5% in the same time frame.
Image Source: Zacks Investment Research
A similar stellar performance has been delivered by other defense stocks involved in the space industry, such as Lockheed Martin (LMT - Free Report) and Intuitive Machines (LUNR - Free Report) , over the past three months. Shares of LUNR surged 82%, while those of LMT rose 2.6%.
What Lies Ahead for RKLB Stock?
According to a World Economic Forum report from April 2024, the space economy is projected to grow from $630 billion in 2023 to $1.8 trillion by 2035, driven by the increasing adoption of satellite and rocket-enabled technologies. This outlook strengthens the long-run growth prospects of stocks like RKLB, LUNR and LMT.
Notably, Lockheed engages in the research, design and production of satellites and space transportation systems, while Intuitive Machines is a space exploration company involved in supplying space products and services to support sustained robotic and human exploration to the Moon, Mars and beyond.
On the other hand, RKLB’s Electron launch vehicle ranks as the second most frequently launched orbital rocket by U.S. companies. Looking ahead, the company is expected to continue its strong prowess in the space industry, with RKLB aiming to launch more than 20 Electron rockets in 2025. This, in turn, should bode well for Rocket Lab’s operational results in the coming quarters.
Let’s take a sneak peek at its near-term estimates to check if that reflects a similar story.
Estimates for RKLB Stock
The Zacks Consensus Estimate for RKLB’s 2025 and 2026 sales suggests an improvement of 32.8% and 47.7%, respectively, year over year. A look at its 2025 and 2026 earnings estimates suggests a similar year-over-year improvement.
However, its second-quarter 2025 earnings estimates suggest a year-over-year decline.
The upward revision of its 2025 and 2026 estimates over the past 60 days indicates investors’ increasing confidence in the stock’s earnings generation capabilities.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
Risks to Consider Before Choosing RKLB
While Rocket Lab holds strong long-term growth potential, it faces several pressing challenges. One of the primary concerns is its high operating expenses, driven by continued investment in next-generation technologies such as the Neutron launch vehicle, spacecraft capabilities and a broader portfolio of components. These expenses often offset revenue gains, leading to losses, as evident from its recent quarterly reports.
Another major risk is Rocket Lab’s elevated debt levels, which currently surpass those of many industry peers (as illustrated by the long-term debt-to-capital ratio in the image below). The company invests aggressively in the design, manufacturing and commercialization of new space technologies. However, if product development timelines slip, the associated debt burden could significantly strain future financial performance. This risk is underscored by Rocket Lab’s recent delay in its first Neutron rocket launch, from an initial 2024 target to mid-2025 at the earliest. Delays like this highlight execution risks that could further pressure the company's balance sheet.
RKLB’s Long-term Debt-to-Capital
Image Source: Zacks Investment Research
RKLB Stock Trading at a Premium
In terms of valuation, RKLB’s forward 12-month price-to-sales (P/S) is 19.18X, a premium to its peer group’s average of 4.50X. This suggests that investors will be paying a higher price than the company's expected sales growth compared to that of its industry.
Image Source: Zacks Investment Research
Other space stocks, such as LUNR and LMT, are trading at a discount to RKLB in terms of their forward P/S ratio. LUNR and LMT have a forward sales multiple of 6.51X and 1.49X, respectively.
Should You Buy RKLB Stock Now?
To conclude, investors interested in Rocket Lab should wait for a better entry point, considering its premium valuation and high leverage. The stock holds a VGM score of F, which is also not a very favorable parameter for investing in a stock.
However, those who already own this Zacks Rank #3 (Hold) stock may continue to do so, considering its impressive performance at the bourses, upward revision in annual earnings estimates and year-over-year sales growth predicted by its near-term estimates.
Image: Bigstock
Mission Launches Fuel Rocket Lab's Rally: Should You Buy the Stock Now?
Key Takeaways
Rocket Lab USA, Inc. (RKLB - Free Report) has recently launched several successful missions, which involve deploying satellites to Earth orbit using its Electron space vehicle. Evidently, at the onset of June 2025, RKLB launched its 65th Electron rocket to deploy Earth-imaging satellites for real-time space-based intelligence company, BlackSky.
In May, Rocket Lab launched the third mission for its Japanese customer, Institute for Q-shu Pioneers of Space, Inc. (iQPS). In March, the company deployed eight satellites for Germany-based global wildfire and detection company OroraTech.
These missions, apart from showcasing Rocket Lab's increased launch cadence, also demonstrate the company’s efficiency in conducting frequent, reliable and dedicated small orbital launches for satellite operators with 100% mission success. Such back-to-back launch missions must have been boosting investors’ confidence in RKLB lately, as evident from its three-month price performance.
RKLB Outperforms Industry, Sector & Market
Rocket Lab’s shares have surged an impressive 66.2% in the past three months, outperforming the Zacks aerospace-defense industry’s gain of 18%. It has also outpaced the broader Zacks Aerospace sector’s rise of 21.8% as well as the S&P 500’s gain of 7.5% in the same time frame.
Image Source: Zacks Investment Research
A similar stellar performance has been delivered by other defense stocks involved in the space industry, such as Lockheed Martin (LMT - Free Report) and Intuitive Machines (LUNR - Free Report) , over the past three months. Shares of LUNR surged 82%, while those of LMT rose 2.6%.
What Lies Ahead for RKLB Stock?
According to a World Economic Forum report from April 2024, the space economy is projected to grow from $630 billion in 2023 to $1.8 trillion by 2035, driven by the increasing adoption of satellite and rocket-enabled technologies. This outlook strengthens the long-run growth prospects of stocks like RKLB, LUNR and LMT.
Notably, Lockheed engages in the research, design and production of satellites and space transportation systems, while Intuitive Machines is a space exploration company involved in supplying space products and services to support sustained robotic and human exploration to the Moon, Mars and beyond.
On the other hand, RKLB’s Electron launch vehicle ranks as the second most frequently launched orbital rocket by U.S. companies. Looking ahead, the company is expected to continue its strong prowess in the space industry, with RKLB aiming to launch more than 20 Electron rockets in 2025. This, in turn, should bode well for Rocket Lab’s operational results in the coming quarters.
Let’s take a sneak peek at its near-term estimates to check if that reflects a similar story.
Estimates for RKLB Stock
The Zacks Consensus Estimate for RKLB’s 2025 and 2026 sales suggests an improvement of 32.8% and 47.7%, respectively, year over year. A look at its 2025 and 2026 earnings estimates suggests a similar year-over-year improvement.
However, its second-quarter 2025 earnings estimates suggest a year-over-year decline.
The upward revision of its 2025 and 2026 estimates over the past 60 days indicates investors’ increasing confidence in the stock’s earnings generation capabilities.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
Risks to Consider Before Choosing RKLB
While Rocket Lab holds strong long-term growth potential, it faces several pressing challenges. One of the primary concerns is its high operating expenses, driven by continued investment in next-generation technologies such as the Neutron launch vehicle, spacecraft capabilities and a broader portfolio of components. These expenses often offset revenue gains, leading to losses, as evident from its recent quarterly reports.
Another major risk is Rocket Lab’s elevated debt levels, which currently surpass those of many industry peers (as illustrated by the long-term debt-to-capital ratio in the image below). The company invests aggressively in the design, manufacturing and commercialization of new space technologies. However, if product development timelines slip, the associated debt burden could significantly strain future financial performance. This risk is underscored by Rocket Lab’s recent delay in its first Neutron rocket launch, from an initial 2024 target to mid-2025 at the earliest. Delays like this highlight execution risks that could further pressure the company's balance sheet.
RKLB’s Long-term Debt-to-Capital
Image Source: Zacks Investment Research
RKLB Stock Trading at a Premium
In terms of valuation, RKLB’s forward 12-month price-to-sales (P/S) is 19.18X, a premium to its peer group’s average of 4.50X. This suggests that investors will be paying a higher price than the company's expected sales growth compared to that of its industry.
Image Source: Zacks Investment Research
Other space stocks, such as LUNR and LMT, are trading at a discount to RKLB in terms of their forward P/S ratio. LUNR and LMT have a forward sales multiple of 6.51X and 1.49X, respectively.
Should You Buy RKLB Stock Now?
To conclude, investors interested in Rocket Lab should wait for a better entry point, considering its premium valuation and high leverage. The stock holds a VGM score of F, which is also not a very favorable parameter for investing in a stock.
However, those who already own this Zacks Rank #3 (Hold) stock may continue to do so, considering its impressive performance at the bourses, upward revision in annual earnings estimates and year-over-year sales growth predicted by its near-term estimates.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.