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Rocket Lab Stock Rises 23.5% in a Year: Is There More Upside Ahead?
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Key Takeaways
RKLB is benefiting from growing demand for launch services, spacecraft manufacturing and space systems.
RKLB's growing backlog and new Electron launch deals bolster its long-term growth prospects.
RKLB faces continued losses, Neutron launch delays and execution risks despite strong demand and liquidity.
Rocket Lab Corporation (RKLB - Free Report) shares have risen 23.5% over the past year, outperforming the Zacks Aerospace-Defense Equipment industry’s decline of 5.2%. The company is driving growth by expanding its Space Systems portfolio, scaling spacecraft manufacturing and strengthening its vertically integrated capabilities.
Image Source: Zacks Investment Research
Meanwhile, stocks like Curtiss-Wright Corporation (CW - Free Report) and TransDigm Group Inc. (TDG - Free Report) have underperformed the industry during the same period. Shares of CW and TDG have fallen 17.3% and 5.7%, respectively.
With RKLB shares gaining over the past year, investors may have positive views. Let’s examine the factors and assess the stock’s investment prospects to make an informed decision.
Key Growth Drivers of RKLB Stock
Rocket Lab is strengthening its position in the space industry through its expanding launch services and space systems businesses. The company provides launch solutions through its Electron and HASTE rockets while developing the reusable Neutron medium-lift rocket to serve larger satellite constellations. In the first nine months of 2026, revenues increased 66.4% year over year to $702.2 million, supported by growing demand for its launch services, spacecraft and components. The company also has more than 55 spacecraft in development and production for government and commercial customers.
Rocket Lab continues to benefit from a growing contract pipeline across its launch and space systems businesses. Contracted backlog reached a record $3.57 billion in September 2026, increasing 52% sequentially. The company secured approximately $1 billion in new launch contracts during the third quarter, bringing its launch backlog to a record 117 missions. This included more than $515 million in Neutron launch contracts, taking its backlog to 16 missions ahead of the rocket's planned debut. The expanding backlog provides improved revenue visibility and supports long-term growth opportunities.
In September 2026, Rocket Lab secured its largest-ever commercial Electron launch agreement, signing a multi-year contract for 20 missions with Japan-based Earth observation company Synspective. The agreement increases the total number of contracted Electron missions for Synspective to 47, with the newly contracted launches scheduled between 2028 and 2031. These missions will deploy StriX synthetic aperture radar satellites to support continuous Earth observation capabilities. The agreement reinforces Electron's competitive position in dedicated small-satellite launches and could strengthen Rocket Lab's presence in the expanding satellite constellation market.
Factors Hindering RKLB's Growth
Rocket Lab continues to incur substantial losses despite strong revenue growth. In the first nine months of 2026, the company recorded a net loss of $174 million and an operating cash outflow of $127.3 million. Research and development expenses increased to $261.3 million from $191.9 million in the prior-year period, reflecting continued investments in technology development and expansion. Sustained spending on new launch vehicles, spacecraft manufacturing and infrastructure before achieving consistent profitability could keep earnings and cash flows under pressure.
Execution risks surrounding the Neutron rocket also remain a significant concern. The company has pushed its first launch target to no earlier than 2027, highlighting the technical challenges associated with developing and commercializing a new launch vehicle. Launch failures, manufacturing delays, supply-chain disruptions and intense industry competition could affect contract execution and future revenue generation. Customer concentration and potential contract cancellations or changes in government funding priorities could also limit backlog conversion and weigh on operating results.
Earnings Estimates for RKLB Stock
The Zacks Consensus Estimate for RKLB’s 2026 earnings per share (EPS) indicates a year-over-year rise of 81.48%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Curtiss-Wright’s 2026 EPS calls for a jump of 17.23%. The estimate for TransDigm Group’s fiscal 2027 EPS implies an increase of 17.48%.
Debt Position of RKLB
Currently, Rocket Lab’s total debt to capital is 0.83%, lower than the industry’s average of 61.13%. It indicates that the company can run its business efficiently with much lower debt levels than its industry peers.
Image Source: Zacks Investment Research
Liquidity Position of RKLB
RKLB has a current ratio of 8.55 compared with its industry’s average of 2.06. 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 TransDigm Group, also maintain current ratios above one. CW has a current ratio of 1.42, while TDG holds 2.67.
RKLB Stock Trades at a Premium
Rocket Lab is currently trading at 29.91X, a premium compared to its industry’s 7.01X on a forward 12-month Price/Sales basis.
Image Source: Zacks Investment Research
What Should an Investor Do?
Rocket Lab is benefiting from growing demand for launch services and space systems, supported by rising backlog, expanding spacecraft manufacturing and new launch contracts. Its strong revenue growth, expanding Neutron order pipeline and strategic focus on satellite constellation deployments could support revenue visibility and long-term growth.
Given its premium valuation, continued losses and execution risks surrounding Neutron, new investors may consider waiting for a more favorable entry point. Investors who already own this Zacks Rank #3 (Hold) stock may consider staying invested, supported by its strong price performance, rising backlog, low debt levels and healthy liquidity. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
View the Zacks #1 Rank List
Image: Bigstock
Rocket Lab Stock Rises 23.5% in a Year: Is There More Upside Ahead?
Key Takeaways
Rocket Lab Corporation (RKLB - Free Report) shares have risen 23.5% over the past year, outperforming the Zacks Aerospace-Defense Equipment industry’s decline of 5.2%. The company is driving growth by expanding its Space Systems portfolio, scaling spacecraft manufacturing and strengthening its vertically integrated capabilities.
Image Source: Zacks Investment Research
Meanwhile, stocks like Curtiss-Wright Corporation (CW - Free Report) and TransDigm Group Inc. (TDG - Free Report) have underperformed the industry during the same period. Shares of CW and TDG have fallen 17.3% and 5.7%, respectively.
With RKLB shares gaining over the past year, investors may have positive views. Let’s examine the factors and assess the stock’s investment prospects to make an informed decision.
Key Growth Drivers of RKLB Stock
Rocket Lab is strengthening its position in the space industry through its expanding launch services and space systems businesses. The company provides launch solutions through its Electron and HASTE rockets while developing the reusable Neutron medium-lift rocket to serve larger satellite constellations. In the first nine months of 2026, revenues increased 66.4% year over year to $702.2 million, supported by growing demand for its launch services, spacecraft and components. The company also has more than 55 spacecraft in development and production for government and commercial customers.
Rocket Lab continues to benefit from a growing contract pipeline across its launch and space systems businesses. Contracted backlog reached a record $3.57 billion in September 2026, increasing 52% sequentially. The company secured approximately $1 billion in new launch contracts during the third quarter, bringing its launch backlog to a record 117 missions. This included more than $515 million in Neutron launch contracts, taking its backlog to 16 missions ahead of the rocket's planned debut. The expanding backlog provides improved revenue visibility and supports long-term growth opportunities.
In September 2026, Rocket Lab secured its largest-ever commercial Electron launch agreement, signing a multi-year contract for 20 missions with Japan-based Earth observation company Synspective. The agreement increases the total number of contracted Electron missions for Synspective to 47, with the newly contracted launches scheduled between 2028 and 2031. These missions will deploy StriX synthetic aperture radar satellites to support continuous Earth observation capabilities. The agreement reinforces Electron's competitive position in dedicated small-satellite launches and could strengthen Rocket Lab's presence in the expanding satellite constellation market.
Factors Hindering RKLB's Growth
Rocket Lab continues to incur substantial losses despite strong revenue growth. In the first nine months of 2026, the company recorded a net loss of $174 million and an operating cash outflow of $127.3 million. Research and development expenses increased to $261.3 million from $191.9 million in the prior-year period, reflecting continued investments in technology development and expansion. Sustained spending on new launch vehicles, spacecraft manufacturing and infrastructure before achieving consistent profitability could keep earnings and cash flows under pressure.
Execution risks surrounding the Neutron rocket also remain a significant concern. The company has pushed its first launch target to no earlier than 2027, highlighting the technical challenges associated with developing and commercializing a new launch vehicle. Launch failures, manufacturing delays, supply-chain disruptions and intense industry competition could affect contract execution and future revenue generation. Customer concentration and potential contract cancellations or changes in government funding priorities could also limit backlog conversion and weigh on operating results.
Earnings Estimates for RKLB Stock
The Zacks Consensus Estimate for RKLB’s 2026 earnings per share (EPS) indicates a year-over-year rise of 81.48%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Curtiss-Wright’s 2026 EPS calls for a jump of 17.23%. The estimate for TransDigm Group’s fiscal 2027 EPS implies an increase of 17.48%.
Debt Position of RKLB
Currently, Rocket Lab’s total debt to capital is 0.83%, lower than the industry’s average of 61.13%. It indicates that the company can run its business efficiently with much lower debt levels than its industry peers.
Image Source: Zacks Investment Research
Liquidity Position of RKLB
RKLB has a current ratio of 8.55 compared with its industry’s average of 2.06. 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 TransDigm Group, also maintain current ratios above one. CW has a current ratio of 1.42, while TDG holds 2.67.
RKLB Stock Trades at a Premium
Rocket Lab is currently trading at 29.91X, a premium compared to its industry’s 7.01X on a forward 12-month Price/Sales basis.
Image Source: Zacks Investment Research
What Should an Investor Do?
Rocket Lab is benefiting from growing demand for launch services and space systems, supported by rising backlog, expanding spacecraft manufacturing and new launch contracts. Its strong revenue growth, expanding Neutron order pipeline and strategic focus on satellite constellation deployments could support revenue visibility and long-term growth.
Given its premium valuation, continued losses and execution risks surrounding Neutron, new investors may consider waiting for a more favorable entry point. Investors who already own this Zacks Rank #3 (Hold) stock may consider staying invested, supported by its strong price performance, rising backlog, low debt levels and healthy liquidity. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.