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Rocket Lab Strengthens Ties With Japan: Should You Buy The Stock?
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Key Takeaways
Rocket Lab signed new contracts with JAXA, iQPS and Synspective, deepening its presence in Japan.
The company's shares have soared 558.1% in a year, far outpacing the broader aerospace sector.
Rising expenses and a 40.00X P/S ratio pose risks despite strong growth and launch milestones.
Rocket Lab USA, Inc. (RKLB - Free Report) recently expanded its presence in Japan by signing a contract with the Japan Aerospace Exploration Agency (JAXA) for two dedicated Electron missions. The company has also secured new multi-launch agreements with Japan-based iQPS and Synspective of late.
In October 2025, Rocket Lab signed a contract with iQPS for three additional dedicated Electron missions, bringing the total number of upcoming launches to seven. In September, the company announced another major deal with Synspective for 10 dedicated Electron missions, taking the total number of scheduled Synspective launches to 21. These contracts highlight Rocket Lab’s growing partnership network and strong customer retention in Japan.
As demand for reliable and timely access to space continues to grow, these partnerships strengthen Rocket Lab’s position in the global small satellite market. Many investors see this expanding customer base and steady launch pipeline as signs of the company’s long-term potential. But is RKLB a stock worth buying at this stage?
Let’s take a look at the stock’s performance, growth opportunities, valuation and potential risks to make a more informed decision.
RKLB Stock’s Performance
RKLB’s shares have surged a solid 558.1% in the past year, outperforming the Zacks Aerospace-Defense-Equipment industry’s growth of 36.6% and the broader Zacks Aerospace sector’s return of 22.8%. It has also surpassed the S&P 500’s return of 16.5% 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 The Boeing Company (BA - Free Report) and Intuitive Machines (LUNR - Free Report) , over the past year. Shares of LUNR have surged 51.6%, while BA shares have risen 41.5%.
Tailwinds Set to Drive Rocket Lab
Rocket Lab continues to build growth momentum through successful missions, strong partnerships and new product development. While the latest partnerships with JAXA, iQPS and Synspective have strengthened its presence in Japan, the company has also been expanding its footprint worldwide.
In August 2025, Rocket Lab successfully launched its 70th Electron mission, further establishing its position as a leading responsive launch service provider. The mission lifted off from Launch Complex 1 in Mahia, New Zealand, less than three weeks after the previous successful launch from the same site.
In the same month, Rocket Lab celebrated the official opening of Launch Complex 3 at the Virginia Spaceport Authority’s Mid-Atlantic Regional Spaceport on Wallops Island. The new facility will serve as the test, launch and landing site for the company’s reusable Neutron rocket.
Looking ahead, RKLB is preparing for the first launch of the Neutron rocket, which is expected in the second half of 2025. This should significantly expand Rocket Lab’s launch capacity in the United States and will help it move beyond small satellite launches to compete with larger players in the space industry.
Let’s take a look at RKLB’s near-term estimates to check if that reflects solid growth prospects.
Estimates for RKLB Stock
The Zacks Consensus Estimate for RKLB’s 2025 and 2026 sales suggests an improvement of 35% and 43.7%, respectively, year over year. A look at its 2025 and 2026 earnings estimates suggests a similar year-over-year improvement.
Image Source: Zacks Investment Research
The upward revision of its 2025 estimates over the past 60 days indicates investors’ increasing confidence in the stock’s earnings generation capabilities. However, its 2026 estimates have moved south over the past 60 days.
Image Source: Zacks Investment Research
Risks to Consider Before Choosing RKLB
Rocket Lab shows strong near-term growth potential, though investors should stay cautious about a few challenges. One key concern is the company’s rising operating expenses, due to heavy investments in developing new technologies such as the Neutron rocket, satellite platforms and other space systems. These high costs have been growing faster than revenues in recent quarters, resulting in continued losses that could remain in the short term.
RKLB Stock Trading at a Premium
In terms of valuation, RKLB’s forward 12-month price-to-sales (P/S) is 40.00X, a premium to its peer group’s average of 4.57X. This suggests that investors will be paying a higher price than the company's expected sales growth compared with its industry.
Image Source: Zacks Investment Research
Other space stocks, such as LUNR and BA, are trading at a discount to RKLB in terms of their forward P/S ratio. LUNR and BA have a forward sales multiple of 6.23X and 1.74X, respectively.
Should You Buy RKLB Stock Now?
Rocket Lab has made steady progress with new partnerships in Japan, successful Electron missions and the opening of Launch Complex 3 for the upcoming Neutron rocket. These milestones highlight the company’s strong execution, growing demand for its services and long-term opportunities in the global space market.
However, high operating costs, continued losses and a premium valuation remain key risks in the near term. Considering this, those looking to invest in this stock may prefer to adopt a wait-and-watch approach.
Image: Bigstock
Rocket Lab Strengthens Ties With Japan: Should You Buy The Stock?
Key Takeaways
Rocket Lab USA, Inc. (RKLB - Free Report) recently expanded its presence in Japan by signing a contract with the Japan Aerospace Exploration Agency (JAXA) for two dedicated Electron missions. The company has also secured new multi-launch agreements with Japan-based iQPS and Synspective of late.
In October 2025, Rocket Lab signed a contract with iQPS for three additional dedicated Electron missions, bringing the total number of upcoming launches to seven. In September, the company announced another major deal with Synspective for 10 dedicated Electron missions, taking the total number of scheduled Synspective launches to 21. These contracts highlight Rocket Lab’s growing partnership network and strong customer retention in Japan.
As demand for reliable and timely access to space continues to grow, these partnerships strengthen Rocket Lab’s position in the global small satellite market. Many investors see this expanding customer base and steady launch pipeline as signs of the company’s long-term potential. But is RKLB a stock worth buying at this stage?
Let’s take a look at the stock’s performance, growth opportunities, valuation and potential risks to make a more informed decision.
RKLB Stock’s Performance
RKLB’s shares have surged a solid 558.1% in the past year, outperforming the Zacks Aerospace-Defense-Equipment industry’s growth of 36.6% and the broader Zacks Aerospace sector’s return of 22.8%. It has also surpassed the S&P 500’s return of 16.5% 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 The Boeing Company (BA - Free Report) and Intuitive Machines (LUNR - Free Report) , over the past year. Shares of LUNR have surged 51.6%, while BA shares have risen 41.5%.
Tailwinds Set to Drive Rocket Lab
Rocket Lab continues to build growth momentum through successful missions, strong partnerships and new product development. While the latest partnerships with JAXA, iQPS and Synspective have strengthened its presence in Japan, the company has also been expanding its footprint worldwide.
In August 2025, Rocket Lab successfully launched its 70th Electron mission, further establishing its position as a leading responsive launch service provider. The mission lifted off from Launch Complex 1 in Mahia, New Zealand, less than three weeks after the previous successful launch from the same site.
In the same month, Rocket Lab celebrated the official opening of Launch Complex 3 at the Virginia Spaceport Authority’s Mid-Atlantic Regional Spaceport on Wallops Island. The new facility will serve as the test, launch and landing site for the company’s reusable Neutron rocket.
Looking ahead, RKLB is preparing for the first launch of the Neutron rocket, which is expected in the second half of 2025. This should significantly expand Rocket Lab’s launch capacity in the United States and will help it move beyond small satellite launches to compete with larger players in the space industry.
Let’s take a look at RKLB’s near-term estimates to check if that reflects solid growth prospects.
Estimates for RKLB Stock
The Zacks Consensus Estimate for RKLB’s 2025 and 2026 sales suggests an improvement of 35% and 43.7%, respectively, year over year. A look at its 2025 and 2026 earnings estimates suggests a similar year-over-year improvement.
Image Source: Zacks Investment Research
The upward revision of its 2025 estimates over the past 60 days indicates investors’ increasing confidence in the stock’s earnings generation capabilities. However, its 2026 estimates have moved south over the past 60 days.
Image Source: Zacks Investment Research
Risks to Consider Before Choosing RKLB
Rocket Lab shows strong near-term growth potential, though investors should stay cautious about a few challenges. One key concern is the company’s rising operating expenses, due to heavy investments in developing new technologies such as the Neutron rocket, satellite platforms and other space systems. These high costs have been growing faster than revenues in recent quarters, resulting in continued losses that could remain in the short term.
RKLB Stock Trading at a Premium
In terms of valuation, RKLB’s forward 12-month price-to-sales (P/S) is 40.00X, a premium to its peer group’s average of 4.57X. This suggests that investors will be paying a higher price than the company's expected sales growth compared with its industry.
Image Source: Zacks Investment Research
Other space stocks, such as LUNR and BA, are trading at a discount to RKLB in terms of their forward P/S ratio. LUNR and BA have a forward sales multiple of 6.23X and 1.74X, respectively.
Should You Buy RKLB Stock Now?
Rocket Lab has made steady progress with new partnerships in Japan, successful Electron missions and the opening of Launch Complex 3 for the upcoming Neutron rocket. These milestones highlight the company’s strong execution, growing demand for its services and long-term opportunities in the global space market.
However, high operating costs, continued losses and a premium valuation remain key risks in the near term. Considering this, those looking to invest in this stock may prefer to adopt a wait-and-watch approach.
Nevertheless, investors who already have this Zacks Rank #3 (Hold) stock may consider maintaining their positions given the company’s expanding launch pipeline and solid growth outlook. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.