Latest news with #RocketLabUSA
Yahoo
2 days ago
- Business
- Yahoo
Should You Forget Tesla and Buy This Millionaire-Maker Stock Instead?
Key Points Shares of Rocket Lab USA have soared more than 50% year to date. The rise of space infrastructure is a long-term trend now unfolding. It will pick up speed as space travel becomes cheaper and more reliable. 10 stocks we like better than Rocket Lab › Is it time to move on from Tesla stock? After the first six months of 2025, many investors might be tempted to do so. As of this writing, shares of the electric vehicle maker are down 22%, leaving many investors very disappointed. While I'm not prepared to move on from Tesla, there are other innovative companies that investors should keep an eye on. Today, I want to cover one of them, Rocket Lab USA (NASDAQ: RKLB). Unlike Tesla, its shares have been on fire so far this year, with a year-to-date return of more than 60%. Here's what you need to know about the company and its stock. Rocket Lab USA The first question investors should ask is: What exactly does Rocket Lab USA do? Well, it's a leader in the field of rocketry and orbital deployments. The company partners with governmental and commercial organizations to send up satellites and other space-based assets into orbit. Like its better-known competitor, SpaceX, Rocket Lab is riding a fast-growing trend: the expansion of space infrastructure. In short, the need for more high-tech equipment in space is increasing as governments and businesses alike turn skyward. Everything from logistics tracking to farming can now incorporate orbital technology, and Rocket Lab is stepping up by expanding access to orbital launches. The company has already completed 10 successful launches of its Electron rocket this year, bringing its total to 68 overall. What's more, the company is progressing toward the use of its reusable Neutron rocket. That program aims to further expand Rocket Lab's overall launch profile by incorporating a reusable rocket (Neutron), which then lands on a 400-foot landing platform. By integrating reusable rocketry, RocketLab aims to lower launch costs, making space-based infrastructure more affordable -- and appealing -- to a growing list of organizations. As the company continues to ramp up launches, its financials are poised to improve. Over the past 12 months, Rocket Lab has generated $466 million in revenue, up 32% year over year. As the company's Neutron program comes online, Rocket Lab's revenue growth should accelerate. According to consensus estimates compiled by Yahoo! Finance, sell-side analysts expect Rocket Lab to generate $890 million in revenue in 2026, up 55% from 2025. Yet, investors should know that Rocket Lab stock does carry risks. For starters, the company is unprofitable and lacks positive free cash flow. Second, any setback in its operations due to a launch malfunction could delay future missions, putting pressure on the company's balance sheet. While Rocket Lab has over $428 million in cash on hand, it also has $490 million in debt. That means the company may need to raise further capital to service its debt and continue operations. Therefore, Rocket Lab stock isn't for every investor. As a high-flying stock -- in every sense of the phrase -- Rocket Lab may be too hot to handle for some investors. Nevertheless, for investors who are willing to hold through volatility, Rocket Lab offers a chance to invest in the next great adventure for humankind: space. It's clear that humanity will want to achieve more in space in the decades to come, and for that to happen, reliable and cheap transportation to space will be necessary. Rocket Lab is well-positioned to be one of the early leaders in this field. Investors should take notice. Should you buy stock 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 $674,281!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,050,415!* Now, it's worth noting Stock Advisor's total average return is 1,059% — 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 Jake Lerch has positions in Rocket Lab and Tesla. The Motley Fool has positions in and recommends Rocket Lab and Tesla. The Motley Fool has a disclosure policy. Should You Forget Tesla and Buy This Millionaire-Maker Stock Instead? was originally published by The Motley Fool Sign in to access your portfolio
Business Insider
03-07-2025
- Business
- Business Insider
Rocket Lab (RKLB) Awarded Highest Price Target Yet by KeyBanc
KeyBanc analyst Michael Leshock raised the price target on RKLB stock to a new Street-High of $40 from $29, implying 16.5% upside potential from current levels. The five-star analyst maintained a Buy rating on RKLB stock. Leshock noted that although Rocket Lab faces ongoing supply constraints in the aerospace and defense aftermarket, it continues to demonstrate strong performance and demand in its core space and defense business areas. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Notably, Leshock is a five-star analyst on TipRanks, ranking #579 out of 9,680 analysts. He boasts a success rate of 93% and an average return per rating of 70.10%. To date, Leshock's best rating has been his 'Buy' recommendation on RKLB stock between January 16, 2024, and January 16, 2025, where he earned gigantic returns of 398.7%. Why Did RKLB Stock Hit a New 52-Week High? On July 1, shares of Rocket Lab USA (RKLB) hit a fresh 52-week high of $38.26 before dropping 4%. RKLB stock had been building upward momentum over the past couple of trading sessions, attributable to positive company news. On June 26, the company announced the successful launch of its 67th Electron rocket, deploying four satellites for HawkEye 360. Additionally, Rocket Lab signed a deal with the European Space Agency (ESA) to launch two small spacecraft to test a planned low Earth orbit positioning, navigation and timing (LEO-PNT) constellation. The company could also benefit from the resurfaced feud between President Trump and Elon Musk. The president has threatened to take away billions of dollars' worth of government contracts and subsidies from Musk's companies, including Tesla (TSLA) and SpaceX. Does Rocket Lab Have a Future? Analysts remain divided about Rocket Lab USA's long-term stock trajectory. While the aerospace company is completing successful space launches, Rocket Lab is not yet profitable or generating positive cash flows, with visibility to normalized financials being limited at the moment. On TipRanks, RKLB stock has a Moderate Buy consensus rating based on six Buys and four Hold ratings. Also, the average Rocket Lab USA price target of $29.50 implies 15.4% downside potential from current levels. In the past year, RKLB stock has gained over 644%.
Business Insider
27-06-2025
- Business
- Business Insider
Rocket Lab USA Stock (RKLB) Soars 13% on ESA Launch Orders
Rocket Lab USA (RKLB) stock soared on Thursday after the aerospace company announced a launch deal with the European Space Agency. This will see it launch two small spacecraft to test a planned low Earth orbit positioning, navigation and timing (LEO-PNT) constellation. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Rocket Lab USA will launch the first of these satellites no earlier than December 2025. The two satellites also have different manufacturers, with one made by GMV and the other by Thales Alenia Space. These are two of a planned 10-satellite setup. The European Space Agency needs the satellites launched before Spring 2026 to comply with International Telecommunication Union regulations. That's why it chose Rocket Lab USA for the task, as the company offered a quick launch period to meet these requirements. What This Means for Rocket Lab USA Stock Investors were pleased with the news that Rocket Lab USA will handle the launch of the two satellites for the European Space Agency. This sent shares of RKLB stock 13.38% higher as of Thursday morning, extending their 43.66% rally year-to-date. Unfortunately, this may not lead to further launches for Rocket Lab USA. The European Space Agency would prefer to use rocket companies in its home territory. It's likely to do so for the launch of an estimated 300-satellite network after the LEO-PNT test is finished. Is Rocket Lab USA Stock a Buy, Sell, or Hold? Turning to Wall Street, the analysts' consensus rating for Rocket Lab USA is Strong Buy, based on nine Buy and three Hold ratings over the past three months. With that comes an average RKLB stock price target of $30.20, representing a potential 17.89% downside for the shares.
Yahoo
26-06-2025
- Business
- Yahoo
Rocket Lab Fast-Tracks Electron Launch for HawkEye 360
Rocket Lab USA Corporation RKLB recently announced a rapid turnaround in its Electron launch schedule to accommodate the next mission for HawkEye 360, a geospatial analytics company. Scheduled to lift off no earlier than Thursday, June 26th UTC from Launch Complex 1 in New Zealand, the mission—titled 'Get The Hawk Outta Here'—will fly ahead of a previously planned launch that was postponed for additional adjustment highlights Rocket Lab's ability to deliver peak operational efficiency and flexibility amid a demanding, back-to-back launch schedule, thereby strengthening its footprint in the space launch services industry. In the modern era of space exploration, factors like rapid technological advancements, the growing demand for satellite deployment, increasing commercial space activities and rising investments in space infrastructure are fueling the growth of the space launch services must have prompted the Grand View Research firm to estimate that the global space launch services market will witness a compound annual growth rate of 15.6% during the 2024-2030 time robust market growth prospects are expected to benefit companies like Rocket Lab. With its advanced Electron rocket and expanding capabilities in small satellite launches, the company is well-positioned to leverage the booming demand for frequent and cost-effective capture further market shares, Rocket Lab is currently developing the Neutron rocket, designed for larger payloads and constellation deployments. This new product should further bolster RKLB's position in the market and fetch solid revenues. Other companies that are expected to enjoy the perks of the expanding global space launch services market have been discussed Grumman Corporation NOC: It provides launch vehicles and propulsion systems through its space systems division. The company's innovations in rocket technology and satellite deployment make it a significant beneficiary of the growing demand for space launch has a long-term (three to five years) earnings growth rate of 3.3%. The Zacks Consensus Estimate for NOC's 2025 sales indicates year-over-year growth of 2.8%.The Boeing Company BA and Lockheed Martin Corporation's LMT joint venture, United Launch Alliance ('ULA'), has been the United States' premier launch services provider since its establishment in 2006. The JV has successfully launched more than 150 Atlas and Delta rockets since has a long-term earnings growth rate of 18.1%, while that for Lockheed is pegged at 10.5%. The Zacks Consensus Estimate for BA and LMT's 2025 sales indicates year-over-year growth of 25.6% and 4.7%, respectively. Shares of RKLB have gained 603% in the past year compared with the industry's 46.6% growth. Image Source: Zacks Investment Research RKLB currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Lockheed Martin Corporation (LMT) : Free Stock Analysis Report Northrop Grumman Corporation (NOC) : Free Stock Analysis Report Rocket Lab Corporation (RKLB) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Forbes
24-06-2025
- Business
- Forbes
Should You Buy RKLB Stock At $33?
CHONGQING, CHINA - MAY 06: In this photo illustration, the logo of Rocket Lab USA, Inc. is displayed ... More on a smartphone screen, with the company's latest stock market chart in the background, reflecting investor sentiment and recent trading activity, on May 06, 2025, in Chongqing, China. (Photo illustration by) Rocket Lab USA (NASDAQ:RKLB) has experienced a remarkable surge in its stock price, climbing approximately 600% over the past twelve months. This impressive growth is largely due to the success of its recent rocket launches and the securing of new contracts, including those for its new Neutron rocket. While the existing Electron rocket is designed to deploy small payloads, with a capacity of up to 300 kilograms, into space, Rocket Lab's second and more powerful vehicle, the Neutron, will significantly increase this capacity, capable of carrying up to 13,000 kilograms to low-Earth orbit. While these advancements are promising, Rocket Lab's stock appears expensive and unattractive at its current valuation, especially given its recent significant rally. We've reached this conclusion by analyzing RKLB stock's current valuation against its recent operating performance and its historical and present financial health. Our comprehensive analysis of Rocket Lab USA, assessing Growth, Profitability, Financial Stability, and Downturn Resilience, indicates that the company has only a moderate operating performance and financial condition. That said, if you seek upside with lower volatility than individual stocks, the Trefis High Quality portfolio presents an alternative - having outperformed the S&P 500 and generated returns exceeding 91% since its inception. How Does Rocket Lab USA's Valuation Look vs. The S&P 500? Going by what you pay per dollar of sales or profit, RKLB stock looks very expensive compared to the broader market. How Have Rocket Lab USA's Revenues Grown Over Recent Years? Rocket Lab USA's Revenues have grown considerably over recent years. How Profitable Is Rocket Lab USA? Rocket Lab USA's profit margins are considerably worse than most companies in the Trefis coverage universe. Does Rocket Lab USA Look Financially Stable? Rocket Lab USA's balance sheet looks very strong. How Resilient Is RKLB Stock During A Downturn? RKLB stock has fared much worse than the benchmark S&P 500 index during some of the recent downturns. While investors have their fingers crossed for a soft landing by the U.S. economy, how bad can things get if there is another recession? Our dashboard How Low Can Stocks Go During A Market Crash captures how key stocks fared during and after the last six market crashes. • RKLB stock fell 82.8% from a high of $20.72 on 9 September 2021 to $3.56 on 27 December 2022, vs. a peak-to-trough decline of 25.4% for the S&P 500 • The stock fully recovered to its pre-Crisis peak by 21 November 2024 • Since then, the stock has increased to a high of $32.78 on 23 June 2025 Putting All The Pieces Together: What It Means For RKLB Stock In summary, Rocket Lab USA's performance across the parameters detailed above are as follows: Rocket Lab shows impressive sales growth and a strong financial position. It's understandable for a company at this early stage to have negative margins and a high cash burn rate. Despite these positives, the stock appears to have priced in all the good news, currently trading at 35 times its trailing revenues. While the upcoming Neutron rocket launch and potential new orders could certainly drive the stock higher, the current valuation presents a high risk. Additionally, there's the broader concern of a market downturn given the uncertain macroeconomic and geopolitical climate. We've seen how sensitive the stock can be to such conditions, as evidenced by its over 80% drop during the 2022 inflation shock market correction. Now, we apply risk assessment framework while constructing Trefis High Quality (HQ) Portfolio which, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics.
