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Rocket Lab Gains 6.3% in the Past Month: How to Play the Stock?
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Key Takeaways
Rocket Lab outpaced its industry with a 6.3% stock gain in the past month.
Acquisitions, launches and new programs supported RKLB's momentum.
Neutron program and 70th Electron launch highlight future growth drivers.
Shares of Rocket Lab USA, Inc. (RKLB - Free Report) have gained 6.3% in the past month, against the 2.5% decline of the Zacks Aerospace-Defense Equipment industry. It also outperformed the Zacks Aerospace sector’s decline of 0.2% and the S&P 500’s rise of 2.2%.
Image Source: Zacks Investment Research
Other defense equipment stocks, such as Heico Corporation (HEI - Free Report) and Astronics (ATRO - Free Report) , have also outperformed the industry in the past month. Shares of HEI have gained 0.1%, while shares of ATRO have gained 33.8%.
Rocket Lab’s recent market performance may draw investor interest. Before making any decision, it is essential to examine the factors supporting this growth and assess whether the company can sustain its momentum or if potential risks could impact its outlook. This approach enables investors to make a well-informed choice.
What Drove RKLB Stock?
Rocket Lab’s share gains over the past month seem to be supported by its notable acquisitions, successful launches and new program developments.
In August, RKLB officially opened Launch Complex 3, a dedicated facility for testing, launching and landing its reusable Neutron rocket. This marks an important step toward strengthening its role in the medium-lift launch market.
In the same month, Rocket Lab completed its 70th Electron launch, reaffirming Electron’s position as the most frequently launched small orbital rocket and highlighting its leadership in responsive space operations.
The company also advanced its semiconductor and sensor capabilities, announcing U.S. investments to expand domestic production of space-grade solar cells and electro-optical sensors. This initiative, supported by $23.9 million in federal funding under the CHIPS and Science Act, is expected to enhance supply-chain security for national security space missions.
Additionally, Rocket Lab closed the $275 million acquisition of Geost, a leading developer of electro-optical and infrared (EO/IR) sensor systems. This acquisition will strengthen the company’s role as a prime contractor for next-generation defense initiatives and broaden its portfolio in mission-ready spacecraft solutions. Together, these achievements have likely boosted investor confidence and supported the stock’s recent upward momentum.
What Lies Ahead for RKLB Stock?
Rocket Lab is sustaining its growth momentum through frequent launches, strategic acquisitions and ongoing product development. In August, the company successfully carried out its 70th Electron mission, reinforcing Electron’s standing as the most frequently launched small orbital rocket. This achievement not only demonstrates reliability but also highlights strong and recurring demand from commercial and government customers. With a target of more than 20 Electron launches this year, the company is well-positioned to generate steady revenue growth in the near term.
Looking ahead, Rocket Lab’s Neutron program remains a major growth driver. The recent opening of Launch Complex 3, its dedicated test, launch, and landing site for the reusable Neutron rocket, represents a critical step toward its first flight, expected in the second half of 2025. By entering the medium-lift launch market, Neutron could broaden Rocket Lab’s addressable market and enable it to compete for larger and higher-value contracts, strengthening its long-term growth prospects.
Risks to Consider Before Choosing RKLB
Rocket Lab demonstrates solid near-term growth prospects, but investors should remain mindful of certain risks. A major concern is the company’s elevated operating expenses, as it continues to invest significantly in the development of advanced technologies, including the Neutron rocket, satellite platforms and other space systems. These substantial costs have outpaced revenue growth in recent quarters, leading to continued losses that may persist in the near term.
RKLB’s Near-Term Estimates
The Zacks Consensus Estimate for RKLB’s 2025 revenues indicates a solid improvement of 34.7% from the prior-year level. The estimate for its earnings also indicates a solid improvement of 34.2%.
The Zacks Consensus Estimate for RKLB’s 2026 revenues indicates year-over-year growth of 46.7%. The estimate for its earnings also indicates year-over-year growth of 77.3%.
Image Source: Zacks Investment Research
RKLB Shares Trading at a Premium
RKLB shares are trading at a premium, with its forward 12-month Price/Sales (P/S F12M) being 28.44X compared with its industry’s average of 9.55X.
Image Source: Zacks Investment Research
Other defense companies, HEI and ATRO, are trading at a discount in comparison with RKLB. HEI is trading at a P/S F12M of 9.34X, while ATRO is trading at a P/S F12M of 1.72X.
Conclusion
Rocket Lab has made solid progress with the 70th Electron launch, the opening of Launch Complex 3 for Neutron and its expansion into semiconductor and EO/IR sensor capabilities. These achievements highlight strong execution, growing demand and long-term opportunities in both commercial and defense markets.
However, high operating costs, continued losses and a premium valuation remain key risks in the near term. Investors interested in RKLB may consider waiting for a better entry point, while those already holding this stock can maintain their positions given its growth momentum and expanding market reach.
Image: Bigstock
Rocket Lab Gains 6.3% in the Past Month: How to Play the Stock?
Key Takeaways
Shares of Rocket Lab USA, Inc. (RKLB - Free Report) have gained 6.3% in the past month, against the 2.5% decline of the Zacks Aerospace-Defense Equipment industry. It also outperformed the Zacks Aerospace sector’s decline of 0.2% and the S&P 500’s rise of 2.2%.
Image Source: Zacks Investment Research
Other defense equipment stocks, such as Heico Corporation (HEI - Free Report) and Astronics (ATRO - Free Report) , have also outperformed the industry in the past month. Shares of HEI have gained 0.1%, while shares of ATRO have gained 33.8%.
Rocket Lab’s recent market performance may draw investor interest. Before making any decision, it is essential to examine the factors supporting this growth and assess whether the company can sustain its momentum or if potential risks could impact its outlook. This approach enables investors to make a well-informed choice.
What Drove RKLB Stock?
Rocket Lab’s share gains over the past month seem to be supported by its notable acquisitions, successful launches and new program developments.
In August, RKLB officially opened Launch Complex 3, a dedicated facility for testing, launching and landing its reusable Neutron rocket. This marks an important step toward strengthening its role in the medium-lift launch market.
In the same month, Rocket Lab completed its 70th Electron launch, reaffirming Electron’s position as the most frequently launched small orbital rocket and highlighting its leadership in responsive space operations.
The company also advanced its semiconductor and sensor capabilities, announcing U.S. investments to expand domestic production of space-grade solar cells and electro-optical sensors. This initiative, supported by $23.9 million in federal funding under the CHIPS and Science Act, is expected to enhance supply-chain security for national security space missions.
Additionally, Rocket Lab closed the $275 million acquisition of Geost, a leading developer of electro-optical and infrared (EO/IR) sensor systems. This acquisition will strengthen the company’s role as a prime contractor for next-generation defense initiatives and broaden its portfolio in mission-ready spacecraft solutions. Together, these achievements have likely boosted investor confidence and supported the stock’s recent upward momentum.
What Lies Ahead for RKLB Stock?
Rocket Lab is sustaining its growth momentum through frequent launches, strategic acquisitions and ongoing product development. In August, the company successfully carried out its 70th Electron mission, reinforcing Electron’s standing as the most frequently launched small orbital rocket. This achievement not only demonstrates reliability but also highlights strong and recurring demand from commercial and government customers. With a target of more than 20 Electron launches this year, the company is well-positioned to generate steady revenue growth in the near term.
Looking ahead, Rocket Lab’s Neutron program remains a major growth driver. The recent opening of Launch Complex 3, its dedicated test, launch, and landing site for the reusable Neutron rocket, represents a critical step toward its first flight, expected in the second half of 2025. By entering the medium-lift launch market, Neutron could broaden Rocket Lab’s addressable market and enable it to compete for larger and higher-value contracts, strengthening its long-term growth prospects.
Risks to Consider Before Choosing RKLB
Rocket Lab demonstrates solid near-term growth prospects, but investors should remain mindful of certain risks. A major concern is the company’s elevated operating expenses, as it continues to invest significantly in the development of advanced technologies, including the Neutron rocket, satellite platforms and other space systems. These substantial costs have outpaced revenue growth in recent quarters, leading to continued losses that may persist in the near term.
RKLB’s Near-Term Estimates
The Zacks Consensus Estimate for RKLB’s 2025 revenues indicates a solid improvement of 34.7% from the prior-year level. The estimate for its earnings also indicates a solid improvement of 34.2%.
The Zacks Consensus Estimate for RKLB’s 2026 revenues indicates year-over-year growth of 46.7%. The estimate for its earnings also indicates year-over-year growth of 77.3%.
Image Source: Zacks Investment Research
RKLB Shares Trading at a Premium
RKLB shares are trading at a premium, with its forward 12-month Price/Sales (P/S F12M) being 28.44X compared with its industry’s average of 9.55X.
Image Source: Zacks Investment Research
Other defense companies, HEI and ATRO, are trading at a discount in comparison with RKLB. HEI is trading at a P/S F12M of 9.34X, while ATRO is trading at a P/S F12M of 1.72X.
Conclusion
Rocket Lab has made solid progress with the 70th Electron launch, the opening of Launch Complex 3 for Neutron and its expansion into semiconductor and EO/IR sensor capabilities. These achievements highlight strong execution, growing demand and long-term opportunities in both commercial and defense markets.
However, high operating costs, continued losses and a premium valuation remain key risks in the near term. Investors interested in RKLB may consider waiting for a better entry point, while those already holding this stock can maintain their positions given its growth momentum and expanding market reach.
Rocket Lab currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.