logo
Why Rocket Lab Stock Skyrocketed Last Week

Why Rocket Lab Stock Skyrocketed Last Week

Yahoo5 days ago
Key Points
Rocket Lab stock surged nearly 32% with the help of bullish coverage from analysts.
Citi and Bank of America both reiterated buy ratings on Rocket Lab and raised their respective price targets on the stock to $50 per share.
Rocket Lab's growth-dependent valuation could create volatility for the stock, but the company has strong positioning in launch services.
10 stocks we like better than Rocket Lab ›
Rocket Lab (NASDAQ: RKLB) stock recorded another run of huge gains over the past week. The company's share price was gained 31.7% from the previous market's close. The S&P 500 index rose 0.6% over the same period of time.
Bullish coverage from analysts helped power massive valuation expansion for Rocket Lab stock over the past week and pushed the company to a new valuation high. Continued excitement surrounding short-term and long-term opportunities in the space industry also supported strong bullish momentum for the stock.
Rocket Lab surged as analysts moved price targets higher
On July 14, Citi published new coverage on Rocket Lab that maintained a buy rating on the stock. The investment firm updated its coverage on the stock in conjunction with a broader review of its outlook on the defense and aerospace industries. In general, Citi's analysts continue to see very strong momentum in the categories -- and they raised their one-year price target on Rocket Lab from $33 to $50 per share.
Bank of America followed up with its own coverage update on Rocket Lab on July 16 and also reiterated a buy rating on the stock. The firm's analysts raised their one-year price target on Rocket Lab stock from $30 to $50 per share and cited opportunities surrounding the company's reusable Neutron rockets and strong positioning in end-to-end satellite launch and development technologies as bullish catalysts.
Following gains on the heels of the coverage, Rocket Lab stock actually closed out the week above Citi and Bank of America's price target of $50 per share.
What's next for Rocket Lab?
Space commercialization has emerged as a growth trend that's attracting a lot of excitement from investors, and Rocket Lab looks well positioned to capitalize on long-term growth opportunities in its corners of the space industry. After climbing 102% across this year's trading, the company now has a market capitalization of $23.7 billion and is valued at approximately 41 times this year's expected sales. Rocket Lab's stock run-up and growth-dependent valuation make its shares a risky play, but the company could still go on to deliver explosive returns for long-term investors if the business continues to rack up wins in launch services and other categories.
Should you invest $1,000 in Rocket Lab right now?
Before you buy stock in Rocket Lab, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Rocket Lab wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!*
Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of July 15, 2025
Citigroup is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Rocket Lab. The Motley Fool has a disclosure policy.
Why Rocket Lab Stock Skyrocketed Last Week was originally published by The Motley Fool
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Accord Announces Banking Facility Update
Accord Announces Banking Facility Update

Yahoo

time19 minutes ago

  • Yahoo

Accord Announces Banking Facility Update

TORONTO, July 25, 2025--(BUSINESS WIRE)--Accord Financial Corp. ("Accord" or the "Company") (TSX – ACD) today announced that it has reached an agreement with its lending syndicate on a short-term extension of its main credit facility from July 26, 2025, to August 8, 2025. The Company and its lenders are in discussions relating to an amendment to the credit facility which is expected to extend the maturity date to December 2025, and the extension will provide additional time for such amendment to be finalized. About Accord Financial Financial is one of North America's most dynamic commercial finance companies providing fast, versatile financing solutions for including asset-based lending, factoring, inventory finance, equipment leasing, trade finance and film/media finance. By leveraging our unique combination of financial strength, deep experience and independent thinking, we craft winning financial solutions for small and medium-sized businesses, simply delivered, so our clients can thrive. Forward-Looking StatementsThis news release contains certain "forward-looking statements", and certain "forward-looking information" as defined under applicable Canadian securities laws. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology. Forward-looking statements in this news release include, but are not limited to, statements, management's beliefs, expectations or intentions regarding the financial position of the Company, and the extension of the Company's credit facilities. Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements are subject to various risks and uncertainties including the fact that there is no assurance on the ability of the Company to enter into arrangements with its lenders to further extend the maturity date of its credit facilities on reasonable terms, or at all, and the Company's overall liquidity and capital resource position and its ability to repay its debt obligations when due, and those risks identified in the Accord's periodic filings with Canadian securities regulators. See Accord's most recent annual information form and most recent management's discussion and analysis of results of operations and financial condition for a detailed discussion of the risk factors affecting Accord. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed, and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. View source version on Contacts For further information, please visit or contact: Irene EddySenior Vice President, Chief Financial OfficerAccord Financial Corp.602 - 40 Eglinton Avenue EastToronto, ON M4P 3A2(416) 961-0304ieddy@

Why consumer stocks are falling out of favor on Wall Street
Why consumer stocks are falling out of favor on Wall Street

Yahoo

time19 minutes ago

  • Yahoo

Why consumer stocks are falling out of favor on Wall Street

Consumer-facing stocks are losing favor as investors grow cautious about lower-income spending. Yahoo Finance Senior Reporter Allie Canal joins Market Domination Overtime with Josh Lipton to discuss how earnings are showing a split between lower- and higher-income consumer trends. To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here. Consumer facing stocks are falling out of favor with US investors. Senior reporter Allie Canal joins us now with the Yahoo Finance Investor playbook. Allie. Hi, Josh. Yeah, Wall Street seems to be growing a bit more cautious on the consumer, especially lower income Americans, and that bifurcation, it's showing up in this week's earnings. So earlier this week we saw Chipotle shares fall double digits after the company cut its full year outlook. Hilton dropped on weak US room revenue. Hasbro flagged ongoing pricing sensitivities, and even American Airlines and Southwest, both those airliners warning on soft domestic travel. Now, excluding the airlines, many of these names fall under the consumer discretionary sector. And despite the S&P 500 trading at record highs, up around 10% on the year, consumer discretionary is barely positive. That actually makes this sector one of the worst performers in 2025. And then on the flip side, you have companies catering to wealthier households, like J.P. Morgan and Amex. They're holding up much better in this environment, and to that point, we've seen sectors like financials, industrials, communication services, technology, those sectors continue to outperform. We heard from Bank of America, which said that their survey data showed that industrials and financials, that actually drew the largest inflows last week, underscoring some of that investor appetite when it comes to these cyclical names with strong earnings momentum. And then what was the biggest outflow? That was consumer discretionary. So we're seeing this trade play out in real time. We talked to a few strategists about this bifurcation. Here's a little bit more of what they told us. I still think that we have a bit of a K-shaped economy. Uh maybe that's another similarity, like the meme stocks being all the rage again to what was happening in 2020, 2021, where you had this bifurcation. I think that we're having we have a bifurcated, uh, economy right now. Haves and have nots, both at the consumer level and at the stock level. The divergence between higher income and middle income and higher and lower income consumers is significant. That is what we're seeing in a very, very nuanced consumer market. This is a hyperpromotional environment to get people, especially lower income and lower middle income consumers to spend money, you have to be out promoting, you have to be out with deals. Yeah, so it's really interesting to see how this is playing out this earnings season, and the takeaway here is really that caution is rising around those lower income spenders, and until there's a bit more clarity on household demand, we may continue to see investors rotate into some of these higher income plays, at least for now, Josh.

Market complacency is 'through the roof': Portfolio manager
Market complacency is 'through the roof': Portfolio manager

Yahoo

time19 minutes ago

  • Yahoo

Market complacency is 'through the roof': Portfolio manager

The S&P 500 (^GSPC) notched its fifth straight record close this week. But The Free Markets ETF (FMKT) co-portfolio manager, Michael Gayed, who is also publisher of The Lead-Lag Report, is warning that market complacency is rising. He breaks down some of the signs he's seeing in the video above. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. So, I think the complacency is through the roof. I think if you look at call option volume, you can clearly see that when you look seasonality, you're pretty much at the point in the calendar where historically the VIX bottoms and you tend to see volatility pick up into September. Um so it's interesting to see that we're in this sort of low volatility in quotes melt up, but small caps, yeah, they're up 1%, but they're not at the prior highs and things are still I think from divergence perspective worth noting. Um there are going to be selective winners, but I do think you're probably in for a risk on, risk off type of sequence. Maybe I'm biased in saying that because I have three funds that try to play off of that, but but the seasonality does seem to favor that. That's a short-term dynamic. The free market ETF, which is focused on the regulatory plays, that's a longer-term dynamic and I think that's a much underappreciated aspect of what's to come. So, are you, would you be looking for in the near term, Mike, would you be looking for a pullback? Most likely, yeah. And do you think investors step in and buy that pullback? That's been the Pavlovian response. It's like, buy the dip, buy the dip. It is, it is remarkable to me how with conviction retail comes in and when I say conviction, I'm talking about leverage ETFs, call option volume buying that you see activity that you're seeing. So, there is, um everyone is trained to do the same thing. Now at some point that's going to fail, right? It's like at some point the dip becomes not a dip, but something much more systemic. I don't know when that is. I've been wrong in trying to think the next one would be the one, right? But, um regardless look, we know markets tend to go up over time. It's just about what time frame you want to play. Related Videos Mortgage rates steady, Trump says no capital gains on home sales Trump's rare Federal Reserve visit raises 2 questions Keurig Dr Pepper CEO on Q2 beat, coffee sales, cane sugar German Exporters Can Live With 15% Tariff, Ifo Says Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store