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Rocket Lab Stock Soars 72% in Three Months: Can the Rise Continue?
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Key Takeaways
Supply-chain constraints and component shortages could affect RKLB's manufacturing schedules and margins.
RKLB depends heavily on government and defense programs, exposing it to budget and policy shifts.
RKLB shares surged 72% in three months, outperforming the industry's 1.2% decline.
Shares of Rocket Lab Corporation (RKLB - Free Report) have surged 72% over the past three months, outperforming the Zacks Aerospace-Defense Equipment industry’s decline of 0.8%. However, the company faces risks from Neutron development timelines, supply-chain bottlenecks and reliance on government programs, which could affect revenue realization, margins and overall performance.
Image Source: Zacks Investment Research
Some stocks from the same industry, such as Curtiss-Wright Corporation (CW - Free Report) and Leonardo DRS, Inc. (DRS - Free Report) , have also outperformed the industry during the same period. Shares of CW and DRS have risen 1.2% and 0.9%, respectively.
With RKLB shares gaining significantly over the past three months, investors may be wondering whether the stock still offers attractive upside. Let's examine the factors and assess the stock's investment prospects to make an informed decision.
Major Headwinds for Rocket Lab
Rocket Lab continues to advance the development of its Neutron launch vehicle, with its first launch targeted for later in 2026. However, the program remains subject to risks related to engine qualification, vehicle testing, launch infrastructure readiness and recovery system development. Any delays in development or certification could postpone expected revenue contributions, extend investment requirements and affect the company’s path toward improved profitability.
The company remains exposed to supply-chain constraints and component availability risks across its launch and space systems businesses. Rocket Lab relies on a broad network of suppliers for critical materials, subsystems and specialized components, and any disruptions, production bottlenecks or cost increases could affect manufacturing schedules, backlog conversion and margin performance. The integration and scaling of recently acquired businesses also present execution risks that may take time to fully realize expected benefits.
Rocket Lab derives a significant portion of its business from government and defense-related customers, making it vulnerable to changes in government budgets, procurement priorities, program schedules and regulatory requirements. Launch failures, spacecraft performance issues, cybersecurity incidents or delays in customer-funded programs could adversely affect revenue recognition, contract awards and the company’s reputation in a highly competitive space market.
Positive Catalysts for Rocket Lab
Rocket Lab continues to expand its role across the space infrastructure market through strategic acquisitions and increasing vertical integration. In May 2026, the company completed the acquisition of Motiv Space Systems, now rebranded as Rocket Lab Robotics, adding advanced space robotics, motion control systems and precision spacecraft mechanisms to its capabilities.
The acquisition strengthens Rocket Lab’s ability to provide end-to-end solutions for planetary exploration missions, including future Mars programs, while also expanding opportunities in national security applications. It further enhances the company’s position in emerging space-based infrastructure markets, such as orbital data centers and satellite constellations, by adding critical in-house spacecraft power and motion-control technologies.
Earnings Estimates for RKLB Stock
The Zacks Consensus Estimate for RKLB’s 2026 earnings per share (EPS) indicates a decline of 33.33% over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Curtiss-Wright’s 2026 EPS calls for a rise of 0.86% in the past 60 days. The estimate for Leonardo DRS’ 2026 EPS indicates an increase of 2.36% over the same period.
RKLB Stock’s Poor ROIC
The image below shows that RKLB stock’s trailing 12-month return on invested capital (ROIC) not only lags the peer group’s average return but also reflects a negative figure. This suggests that the company's investments are not yielding sufficient returns to cover its expenses.
Image Source: Zacks Investment Research
Liquidity Position of RKLB
RKLB has a current ratio of 4.48 compared with its industry’s average of 2.36. The ratio, being more than one, indicates that RKLB possesses sufficient capital to pay off its short-term debt obligations.
Image Source: Zacks Investment Research
Its industry peers, Curtiss-Wright and Leonardo DRS, also maintain current ratios above one. CW has a current ratio of 1.52, while DRS holds 1.86.
RKLB Stock Trades at a Premium
Rocket Lab is currently trading at 67.12X, a premium compared to its industry’s 12.75X on a forward 12-month Price/Sales basis.
Image Source: Zacks Investment Research
What Should an Investor Do?
Despite broadening its capabilities through strategic acquisitions and deeper vertical integration, Rocket Lab still faces risks tied to Neutron execution, supply-chain availability and exposure to government-funded programs. The stock has significantly outperformed the industry in recent months and continues to trade at a substantial premium to peers. At the same time, declining earnings estimates and a negative ROIC indicate that the company has yet to translate its growth investments into consistent financial returns. Given these factors, investors may consider avoiding the stock at current levels.
View the Zacks #1 Rank List
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Rocket Lab Stock Soars 72% in Three Months: Can the Rise Continue?
Key Takeaways
Shares of Rocket Lab Corporation (RKLB - Free Report) have surged 72% over the past three months, outperforming the Zacks Aerospace-Defense Equipment industry’s decline of 0.8%. However, the company faces risks from Neutron development timelines, supply-chain bottlenecks and reliance on government programs, which could affect revenue realization, margins and overall performance.
Image Source: Zacks Investment Research
Some stocks from the same industry, such as Curtiss-Wright Corporation (CW - Free Report) and Leonardo DRS, Inc. (DRS - Free Report) , have also outperformed the industry during the same period. Shares of CW and DRS have risen 1.2% and 0.9%, respectively.
With RKLB shares gaining significantly over the past three months, investors may be wondering whether the stock still offers attractive upside. Let's examine the factors and assess the stock's investment prospects to make an informed decision.
Major Headwinds for Rocket Lab
Rocket Lab continues to advance the development of its Neutron launch vehicle, with its first launch targeted for later in 2026. However, the program remains subject to risks related to engine qualification, vehicle testing, launch infrastructure readiness and recovery system development. Any delays in development or certification could postpone expected revenue contributions, extend investment requirements and affect the company’s path toward improved profitability.
The company remains exposed to supply-chain constraints and component availability risks across its launch and space systems businesses. Rocket Lab relies on a broad network of suppliers for critical materials, subsystems and specialized components, and any disruptions, production bottlenecks or cost increases could affect manufacturing schedules, backlog conversion and margin performance. The integration and scaling of recently acquired businesses also present execution risks that may take time to fully realize expected benefits.
Rocket Lab derives a significant portion of its business from government and defense-related customers, making it vulnerable to changes in government budgets, procurement priorities, program schedules and regulatory requirements. Launch failures, spacecraft performance issues, cybersecurity incidents or delays in customer-funded programs could adversely affect revenue recognition, contract awards and the company’s reputation in a highly competitive space market.
Positive Catalysts for Rocket Lab
Rocket Lab continues to expand its role across the space infrastructure market through strategic acquisitions and increasing vertical integration. In May 2026, the company completed the acquisition of Motiv Space Systems, now rebranded as Rocket Lab Robotics, adding advanced space robotics, motion control systems and precision spacecraft mechanisms to its capabilities.
The acquisition strengthens Rocket Lab’s ability to provide end-to-end solutions for planetary exploration missions, including future Mars programs, while also expanding opportunities in national security applications. It further enhances the company’s position in emerging space-based infrastructure markets, such as orbital data centers and satellite constellations, by adding critical in-house spacecraft power and motion-control technologies.
Earnings Estimates for RKLB Stock
The Zacks Consensus Estimate for RKLB’s 2026 earnings per share (EPS) indicates a decline of 33.33% over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Curtiss-Wright’s 2026 EPS calls for a rise of 0.86% in the past 60 days. The estimate for Leonardo DRS’ 2026 EPS indicates an increase of 2.36% over the same period.
RKLB Stock’s Poor ROIC
The image below shows that RKLB stock’s trailing 12-month return on invested capital (ROIC) not only lags the peer group’s average return but also reflects a negative figure. This suggests that the company's investments are not yielding sufficient returns to cover its expenses.
Image Source: Zacks Investment Research
Liquidity Position of RKLB
RKLB has a current ratio of 4.48 compared with its industry’s average of 2.36. The ratio, being more than one, indicates that RKLB possesses sufficient capital to pay off its short-term debt obligations.
Image Source: Zacks Investment Research
Its industry peers, Curtiss-Wright and Leonardo DRS, also maintain current ratios above one. CW has a current ratio of 1.52, while DRS holds 1.86.
RKLB Stock Trades at a Premium
Rocket Lab is currently trading at 67.12X, a premium compared to its industry’s 12.75X on a forward 12-month Price/Sales basis.
Image Source: Zacks Investment Research
What Should an Investor Do?
Despite broadening its capabilities through strategic acquisitions and deeper vertical integration, Rocket Lab still faces risks tied to Neutron execution, supply-chain availability and exposure to government-funded programs. The stock has significantly outperformed the industry in recent months and continues to trade at a substantial premium to peers. At the same time, declining earnings estimates and a negative ROIC indicate that the company has yet to translate its growth investments into consistent financial returns. Given these factors, investors may consider avoiding the stock at current levels.
RKLB currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.