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Is Rocket Lab's Neutron Rocket Nearing Launch Readiness?

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Key Takeaways

  • RKLB advanced Neutron's launch prep by qualifying its reusable Hungry Hippo fairing for flight.
  • The fairing's design supports faster reuse and simpler operations for frequent missions.
  • Neutron targets a 2026 debut, with major hardware now arriving at Launch Complex 3 in Virginia.

Rocket Lab USA, Inc. (RKLB - Free Report) is taking another clear step forward with the Neutron rocket after completing qualification testing for its innovative Hungry Hippo fairing system. This fairing is now on its way to Virginia for Neutron’s first launch campaign and the milestone shows that the rocket is progressing as planned.

The Hungry Hippo fairing sets Neutron apart in the reusable launch market. Most rockets discard their fairing halves during flight or must recover them at sea for reuse. Neutron instead keeps its fairing attached to the first stage during launch and landing. The fairing opens to deploy the second stage and payload, and then closes again so the rocket can return to Earth as one complete reusable vehicle. This approach supports faster reuse and simpler operations for frequent commercial, civil and national security missions.

With the fairing design and structure now qualified for flight, Neutron is moving deeper into launch readiness. The rocket is built from carbon composite material and can lift up to 13,000 kilograms, which positions Rocket Lab to compete for larger, higher-value missions.

Neutron began development in late 2021 and remains on track for its first flight in 2026. With major hardware arriving at Launch Complex 3 in Virginia, this achievement brings the company closer to introducing one of the fastest-developed commercial rockets to the market.

Other Stocks to Keep on the Watchlist

The space launch services market is expanding steadily, driven by rapid technological progress, rising satellite deployment and increasing commercial space activity.

These trends create opportunities for major space players like Boeing (BA - Free Report) and Lockheed Martin (LMT - Free Report) , which maintain a strong foothold in launch services through their joint venture, United Launch Alliance (“ULA”).

Formed in 2006, ULA has completed more than 150 Atlas and Delta launches, establishing itself as a reliable provider for commercial, scientific and defense missions.

To strengthen its position, ULA recently introduced the Vulcan rocket, offering more affordable and flexible launch options.

RKLB’s Price Performance, Valuation and Estimates

Shares of RKLB have gained 154.7% in the past year compared with the industry’s 23.9% growth.

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The company shares are expensive on a relative basis, with its forward 12-month Price/Sales being 36.58X compared with its industry’s average of 9.87X.

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The Zacks Consensus Estimate for RKLB’s 2025 and 2026 losses has improved 16.67% and 6.67%, respectively, over the past 60 days.

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RKLB stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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