- Rocket Lab: The Stock Is More Expensive Now, But I've Still Decided To Buy (Rating Upgrade)
May 13, 2026 · seekingalpha.com
Neutron is securing large multi-year launch bookings before its official debut, pushing Rocket Lab's total backlog to $2.2 billion. New Neutron and Electron contracts are priced at average selling prices, indicating pricing power and supporting stable or possibly higher gross margins. The Motiv Space Systems acquisition at $60 million values the target at a steep premium to similar aerospace manufacturers, increasing the risk of overpaying.
- Rocket Lab (RKLB) Stock Trades Up, Here Is Why
May 13, 2026
What Happened?
Shares of aerospace and defense company Rocket Lab (NASDAQ:RKLB) jumped 30.6% in the afternoon session after it reported strong first-quarter 2026 results that beat revenue expectations and provided exceptionally bullish guidance for the upcoming quarter.
The company's first-quarter revenue grew 63.5% year on year to $200.3 million, topping Wall Street's estimates. While its loss per share of $0.07 was in line with expectations, the company's outlook ignited investor enthusiasm. Rocket Lab forecasted second-quarter revenue of around $232.5 million, significantly ahead of the consensus estimate of $207.6 million.
More impressively, the company guided for a positive adjusted EBITDA of $23 million, a dramatic reversal from the $15.14 million loss analysts had anticipated. This strong guidance suggests accelerating growth and a faster-than-expected path to profitability, driving the stock higher.
The shares closed the day at $105.51, up 34.1% from previous close.
Is now the time to buy Rocket Lab? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Rocket Lab’s shares are extremely volatile and have had 78 moves greater than 5% over the last year. But moves this big are rare even for Rocket Lab and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 2 days ago when the stock gained 6.2% on the news that the U.S.-Iran peace framework collapsed oil prices and revived the outlook for global air travel demand.
Commercial aerospace is a long-cycle business: the order book today reflects airline confidence in passenger demand five to ten years out. War in the Middle East had pressured that confidence on three fronts: high jet fuel costs squeezing airline cash flow, suppressed international flying through key Gulf hubs, and a generally cautious capex environment among carriers.
A peace framework reverses each: cheaper jet fuel restores airline profitability, reopened airspace and the Strait normalize global route economics, and macro clarity encourages the fleet-modernization commitments that had been slow-walked. Aftermarket revenue from spare parts and maintenance also benefits as flight hours recover. Pure-play commercial suppliers see the cleanest tailwind, while diversified primes with defense exposure capture a smaller net benefit.
Rocket Lab is up 37.8% since the beginning of the year, and at $104.73 per share, has set a new 52-week high. Investors who bought $1,000 worth of Rocket Lab’s shares 5 years ago would now be looking at an investment worth $10,579.
Story Continues
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- RKLB Q1 Deep Dive: Space Systems Expansion, Neutron Progress, and Record Backlog Fuel Outlook
May 13, 2026
Aerospace and defense company Rocket Lab (NASDAQ:RKLB) announced better-than-expected revenue in Q1 CY2026, with sales up 63.5% year on year to $200.3 million. On top of that, next quarter’s revenue guidance ($232.5 million at the midpoint) was surprisingly good and 12% above what analysts were expecting. Its non-GAAP loss of $0.02 per share was $0.02 above analysts’ consensus estimates.
Is now the time to buy RKLB? Find out in our full research report (it’s free).
Rocket Lab (RKLB) Q1 CY2026 Highlights:
Revenue: $200.3 million vs analyst estimates of $190.9 million (63.5% year-on-year growth, 4.9% beat) Adjusted EPS: -$0.02 vs analyst estimates of -$0.04 ($0.02 beat) Adjusted EBITDA: -$11.75 million (-5.9% margin, 60.8% year-on-year growth) Revenue Guidance for Q2 CY2026 is $232.5 million at the midpoint, above analyst estimates of $207.6 million EBITDA guidance for Q2 CY2026 is $23 million at the midpoint, above analyst estimates of -$15.14 million Adjusted EBITDA Margin: -5.9% Market Capitalization: $45.42 billion
StockStory’s Take
Rocket Lab’s first quarter was marked by notable execution across both launch and space systems, resulting in a market reaction that reflected confidence in the company’s trajectory. Management attributed the revenue growth to robust demand for Electron and HASTE launches, a record number of launch contracts signed, and expansion in satellite platforms and subsystems. CEO Peter Beck cited the company’s “record backlog, record cash position and record launch contracts across Electron, HASTE and Neutron,” highlighting the broad-based momentum across defense, commercial, and civil space markets. The completion of major contracts, introduction of new in-house technologies, and the Motive Space Systems acquisition were also credited with fueling quarterly performance.
Looking forward, Rocket Lab’s guidance is underpinned by expectations for continued growth in its satellite platforms segment and the approaching first flight of Neutron. Management believes that vertical integration, new product rollouts, and expansion into European markets will support both revenue and margin improvement. CFO Adam Spice stated that “as we progress towards Neutron’s first flight, we expect capital expenditures to remain elevated as we invest in testing, production scaling and infrastructure expansion.” The integration of recent acquisitions and increased cadence in launch and space systems are expected to drive strong results in the next quarter and beyond.
Key Insights from Management’s Remarks
Management highlighted that the quarter’s results were shaped by record contract wins, expansion of vertical integration, and the strategic timing of new product and market entries.
Story Continues
Launch contract momentum: The company signed a record number of Electron and HASTE launch contracts, including a $190 million, 20-launch HASTE order and five Neutron contracts, which contributed to a 20% quarter-on-quarter increase in backlog. Satellite systems growth: Space Systems revenue benefited from scaling satellite platforms, with management noting particularly strong performance from national security and commercial constellation projects, as well as the integration of recently acquired subsystems capabilities. Vertical integration strategy: Rocket Lab advanced its strategy to control more of its supply chain by acquiring Motive Space Systems and rolling out its own electric propulsion thruster, reducing reliance on external suppliers for key satellite components. European market entry: The closure of the Mynaric acquisition established a European operational base, enabling access to new government and commercial opportunities across the EU, Germany, and the UK, which management described as a “major step” for international growth. Neutron development progress: The Neutron medium-lift rocket program continued to advance, with significant milestones achieved in tank production, stage separation testing, and platform infrastructure, positioning the company for a first launch later this year.
Drivers of Future Performance
Rocket Lab’s outlook is driven by scaling satellite platform production, ongoing Neutron development, and greater operational leverage from vertically integrated systems.
Satellite platforms ramp: Management expects continued growth from large constellation and national security satellite contracts, particularly as Space Systems increases its share of total revenue. The company’s ability to deliver satellites and subsystems on tight timelines is seen as a differentiator. Neutron launch milestones: The transition of Neutron from development to initial flight is expected to unlock new revenue streams and improve margin profile, with management emphasizing that successful early launches should accelerate contract signings and customer adoption. Margin variability from business mix: Management cautioned that gross margins will fluctuate as the mix shifts towards large government contracts, which carry lower initial margins but provide scale, while the maturing Electron and subsystem businesses are expected to support margin expansion over time.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be monitoring (1) the pace of Neutron’s development and successful completion of key test milestones, (2) the conversion of the company’s record backlog into revenue, especially for satellite and hypersonic test contracts, and (3) the integration and performance of recently acquired businesses like Motive Space Systems and Mynaric. Progress in these areas will act as key indicators of Rocket Lab’s ability to sustain growth and expand market share.
Rocket Lab currently trades at $99.53, up from $78.70 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).
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- Rocket Lab's Rally Changes Everything For Investors
May 12, 2026 · seekingalpha.com
Rocket Lab is transitioning from a launch provider to a vertically integrated space and defense infrastructure company. Space Systems generated $136.7 million in quarterly revenue, overtaking Launch Services and reshaping Rocket Lab's long-term economics. Rocket Lab secured five Neutron launches through 2029 while maintaining pricing discipline instead of discounting backlog aggressively.
- Veteran analyst doubles down on Rocket Lab stock after earnings
May 12, 2026
There's a certain kind of analyst who doesn't talk much when he's wrong and doesn't celebrate long when he's right. Stephen "Sarge" Guilfoyle is that kind of analyst.
Sarge is a former NYSE floor trader with more than 30 years of experience and the founder and president of Sarge986 LLC. On Friday, May 8, 2026, Guilfoyle set a $112 price target on Rocket Lab (RKLB) after a strong earnings beat on May 7th. Rocket Lab surged 34% in its best day ever on a revenue beat, according to ETF Database.
On Monday, May 11, the stock blew straight through it, surging to touch all-time highs of $123. TD Cowen raised its target to $120 from $90, after earnings, with a buy rating, according to The Fly. That got hit, too.
Morgan Stanley upgraded Rocket Lab (RKLB) to overweight from equal weight and raised its price target to $105 from $67 in January 2026. That got hit as well.
By Monday, May 11, at the closing bell, RKLB was up 11% to $117.35, according to Yahoo Finance, after a slight retracement from its new all-time high. The crowd was cheering. Sarge was already asking the next question.
Rocket Lab CEO Peter Beck had given them plenty to cheer about. "We exited the quarter with $2.2 billion in backlog," he said in a company statement, "and currently have access to more than $2 billion in liquidity, putting us in a very strong position for continued growth and M&A execution."
But when a stock does what RKLB just did, the question shifts fast, from "can it go up?" to "how much is already priced in?"
Rocket Lab's record Q1 earnings gave Wall Street almost everything it wanted
The numbers that triggered the surge were genuinely exceptional. Rocket Lab posted Q1 2026 revenue of $200.3 million, up 63.5% year over year (YoY) and a new company record, according to a company statement.
Key Rocket Lab first quarter 2026 highlights:
Revenue: $200.3 million, up 63.5% YoY GAAP gross margin: 38.2%, also a record Backlog: $2.2 billion, up 20.2% quarter-over-quarter (QoQ) New Electron and HASTE contracts signed in Q1: 31, more than all of 2025 combined Total contracted launch manifest: Exceeds 70 missions
Source: Rocket Lab First Quarter 2026 Financial Results
The company also closed the acquisition of Mynaric AG and signed a deal to acquire Motiv Space Systems, adding Mars-proven robotics and solar array drive assemblies — components that had previously been costly external dependencies.
For Q2 2026, Rocket Lab guided revenue between $225 million and $240 million, with non-GAAP gross margins of 38% to 40%, according to the company statement.Rocket Lab posted Q1 2026 revenue of $200.3 million, up 63.5% year over year, setting a new company record.LightRocket via Getty Images
The defense contracts that changed the conversation around RKLB
Beyond the earnings beat, two contract wins reshaped how Wall Street is sizing up Rocket Lab's long-term opportunity.
Story Continues
First, Rocket Lab was selected to support the Department of War's Space-Based Interceptor program, a core component of President Donald Trump's Golden Dome for America initiative, in partnership with Raytheon.
The deal calls on both Rocket Lab's launch and satellite capabilities, according to the company statement. The company has separately secured a $190 million deal with the Department of War, according to Rocket Lab.
Related: Morgan Stanley tweaks Rocket Lab stock price target post-rally
Second, Rocket Lab unveiled a $30 million contract with defense company Anduril Industries for three hypersonic test launches using its HASTE vehicle from Launch Complex 2 in Virginia, with the first mission scheduled within 12 months.
I crunched the numbers on what this means for the backlog story. At $2.2 billion and growing, Rocket Lab's contracted revenue pipeline now runs well ahead of its current quarterly run rate. That's the kind of visibility that justifies premium valuations, at least on paper.
Why Sarge is watching technicals, not just the headline numbers
Here's where the story gets more nuanced. Guilfoyle had been tracking RKLB's technical setup carefully heading into earnings.
In a report at TheStreet Pro, Sarge flagged that the stock had broken out of a falling wedge — a classically bullish reversal pattern — in mid-April, and had been holding support at its 21-day exponential moving average (EMA).
His $112 target was rooted in that technical read. The stock cleared it and kept going. Now, with RKLB trading well above both his target, Morgan Stanley's target, and TD Cowen's revised $120 level, Guilfoyle's stance is that demand continues to support the move.
More Wall Street:
JPMorgan resets S&P 500 price target for the rest of 2026 Vanguard challenges the S&P 500 as a one-stop strategy Goldman Sachs resets Broadcom stock forecast
But his caution is implicit in the framing. Relative strength had been neutral for roughly two weeks heading into the surge, and the daily moving average convergence divergence (MACD) had turned negative before earnings reversed the picture.
My review of the data suggests the core tension here: RKLB has returned 472% over the past year and 68% year to date, according to Yahoo Finance data as of May 11, 2026, closing bell. The S&P 500 is up 8.29% over the same year-to-date period. At some point, even great execution has to catch up to a price.
Rocket Lab's Neutron rocket is the next catalyst, and the next unknown
The piece of the story that hasn't been fully priced yet is Neutron. Rocket Lab's medium-lift rocket is targeting its debut launch later in 2026. The company reported ongoing integration of first-flight hardware, continued Archimedes engine qualification, and advancement of second-stage and fairing systems.
Neutron matter because it opens a different market. Larger payloads, bigger contracts, and direct competition with launch providers that currently operate above Electron's weight class. Five dedicated Neutron launches have already been signed, the company's X post confirms.
If Neutron delivers, the revenue model changes. If it slips, so does part of the bull case. For a stock trading at all-time highs after a 34% single-day surge, that's not a footnote.
It's the next chapter that Sarge, and the rest of Wall Street, will be watching closely.
Related: Bank of America tweaks CoreWeave stock price target for 2026
This story was originally published by TheStreet on May 12, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.
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- 4 Leveraged ETF Winners of Last Week
May 12, 2026
Wall Street offered an upbeat performance last week. State Street SPDR S&P 500 ETF Trust SPY has added about 2.4% last week. The tech-heavy Nasdaq-100 ETF Invesco QQQ Trust, Series 1 QQQ jumped 5.4% last week. State Street SPDR Dow Jones Industrial Avg ETF Trust DIA inched up just 0.5%.
Let’s find out the factors driving Wall Street’s risk-on sentiments.
Stability in Jobs Report
The U.S. economy added 115,000 nonfarm jobs in April, topping economists’ expectations of 55,000, though falling short of the revised 185,000 gain recorded in March. Federal Reserve Bank of Chicago President Austan Goolsbee described the labor market as stable rather than strong, as quoted on CNBC.
The latest data pointed to a labor market that remains resilient but continues to lose momentum compared to the rapid hiring pace seen in earlier years. The unemployment rate held steady at 4.3%.
Iran Deal Hopes
U.S. Secretary of State Marco Rubio said the United States was expecting a response on Friday from Iran on the proposal to end the war, as quoted on CNBC. The United States was awaiting response from Iran over proposals for ceasefire deal, per the Guardian.
Meanwhile, Kalshi traders now see a 58% chance a deal is reached by 2027, as quoted on CNBC. They also see a 47% chance an agreement is reached by September. Those levels are higher than before the Axios report, but still lower than the probability in the middle of April when there was more hope for a resolution to the conflict. In mid-April, odds that the two countries reach a nuclear deal by June were more than 70%, the same source revealed.
No Fed Rate Hike?
Markets currently expect the central bank to leave rates unchanged through the remainder of the year as inflation remains elevated and the labor market cools only gradually. Meanwhile, former Federal Reserve Governor Kevin Warsh is awaiting Senate confirmation to become the next Fed chair, per the above-said CNBC article.
Upbeat Earnings
The Q1 earnings season indicated a steadily improving earnings outlook. Estimates have moved higher for 7 of the 16 Zacks sectors since the quarter got underway. These sectors are: Tech, Energy, Basic Materials, Utilities, Industrials, Retail, and Business Services.
Winning Leveraged ETFs in Focus
Against this backdrop, below we highlight a few winning leveraged ETFs of last week.
MU-Heavy ETFs
Direxion Daily MU Bull 2X ETF MUU – Up 83.5%
GraniteShares 2x Long MU Daily ETF (MULL) – Up 82.7%
One of the leading worldwide providers of semiconductor memory solutions -- Micron Technology’s (MU) shares gained 33.7% last week. Memory stocks continue to soar higher lately.
Story Continues
Memory chips — crucial for smartphones, laptops and other consumer electronics — are a critical component of artificial intelligence data centers and servers.
A supply crunch and rising prices in the memory chip market are expected to continue through 2027, according to a leading semiconductor industry executive, as mentioned on CNBC.
Iren-Heavy ETFs
Leverage Shares 2X Long IREN Daily ETF IREG – Up 72.6%
Defiance Daily Target 2X Long IREN ETF (IRE) – Up 72.3%
IREN IREN shares surged 32% last week. IREN, known for Bitcoin mining, secured a major AI infrastructure partnership with NVIDIA, as quoted on Crypto Briefing. NVIDIA will pay IREN $3.4 billion for managed GPU cloud services, alongside a five-year warrant to buy up to 30 million IREN shares at $70 each.
Sandisk-Heavy ETFs
Tradr 2X Long SNDK Daily ETF SNXX – Up 67.4%
SanDisk SNDK shares added about 27.8% last week. Sandisk stock surged amid AI infrastructure and memory demand. The company recently reported that its fiscal Q3 revenue soared 251% year over year, and Datacenter revenue grew 645%, as quoted on The Street. Post earnings, Zacks Consensus Estimate for earnings rose from $18.41 to $32.40 for the June quarter over the past 30 days. Earnings for the June quarter is expected to grow by a whopping 11,072.41% year over year.
Rocket-Lab-Heavy ETFs
Defiance Daily Target 2X Long RKLB ETF RKLX – Up 65.5%
Rocket Lab RKLB shares jumped about 35% last week. Rocket Lab came out with a quarterly loss of $0.02 per share versus the Zacks Consensus Estimate of a loss of $0.04. This compares to a loss of $0.12 per share a year ago. Rocket Lab posted revenues of $200.35 million, surpassing the Zacks Consensus Estimate by 4.67%. this upbeat performance led to the rally in shares.
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Invesco QQQ (QQQ): ETF Research Reports
State Street SPDR Dow Jones Industrial Average ETF Trust (DIA): ETF Research Reports
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This article originally published on Zacks Investment Research (zacks.com).
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- ATRO Outperforms Industry in a Month: Should You Buy the Stock?
May 12, 2026
Astronics Corporation ATRO stock has gained 1.9% in the past month, outperforming the Zacks Aerospace-Defense Equipment industry’s growth of 1.2% and the broader Zacks Aerospace sector’s decline of 4.6%. However, it came below the S&P 500’s return of 8.5% in the same time frame.Zacks Investment Research
Image Source: Zacks Investment Research
Other industry players like Hexcel HXL and Rocket Lab Corporation RKLB have also delivered a similar stellar performance in the past month. HXL and RKLB shares have risen 14.9% and 13.7%, respectively, in the said period.
ATRO’s recent gains may draw investor attention. However, before investing, it is important to evaluate whether the company’s fundamentals are strong enough to support sustained long-term growth or if the recent rally may be temporary. A closer look at ATRO’s growth stability can help investors make a more informed decision.
Tailwinds for ATRO
Astronics is strengthening its presence in the aerospace market through continuous product innovation focused on improving passenger experience and addressing evolving airline requirements.
In April 2026, the company launched its EmPower 1327-27 Dual USB-Type-C In-Seat Power Outlet, designed to deliver faster charging capabilities to meet the rising power needs of modern travelers. With passengers increasingly depending on personal electronic devices during flights, advanced in-seat charging solutions have become an important feature for airlines.
The company also introduced the EmPower Qi21 Wireless Charging Module, representing another advancement in onboard power technology. This solution provides efficient wireless charging for both passengers and crew, supporting the industry’s growing preference for more convenient and cable-free cabin environments.
These new product introductions reflect Astronics’ commitment to innovation and its ability to respond to changing customer demands. By broadening its portfolio of advanced cabin power solutions, the company remains well-positioned to benefit from increasing demand in the commercial aerospace market and support its long-term growth prospects.
ATRO’s Estimates
The Zacks Consensus Estimate for 2026 sales implies year-over-year growth of 11.6%. The consensus estimate for 2026 earnings implies year-over-year growth of 30.4%.Zacks Investment Research
Image Source: Zacks Investment Research
Further, the upward revision in the company’s 2027 earnings estimates over the past 60 days suggests investors’ increasing confidence in this stock’s earnings generation capabilities.Zacks Investment Research
Image Source: Zacks Investment Research
ATRO Stock Reflects Discounted Valuation
In terms of valuation, ATRO’s forward 12-month price-to-sales (P/S) is 2.74X, a discount to the industry average of 12.09X. This suggests that investors will pay a lower price than the company's expected sales growth compared with its industry average.
Story Continues
Zacks Investment Research
Image Source: Zacks Investment Research
Other industry peers, on the contrary, are trading at a premium to ATRO. While Hexcel is trading at a forward 12-month P/S of 3.33X, Rocket Lab is trading at 49.49X.
Liquidity Position
ATRO has a current ratio of 3.10. The ratio, being more than one, indicates that ATRO possesses sufficient capital to pay off its short-term debt obligations.
Its industry peers, Hexcel and Rocket Lab, also maintain current ratios above one. HXL has a current ratio of 2.45, while RKLB holds 4.08.
ROIC
ATRO’s Return on Invested Capital stands at 17.29%, well above the industry average of 5.83%. This indicates that the company is generating strong returns on its investments and using its capital far more efficiently than most of its peers.
Should You Buy ATRO Stock Now?
Astronics’ discounted valuation, improving earnings outlook, healthy liquidity position and strong return on invested capital highlight its solid financial position and growth potential. Its continued focus on product innovation and expanding aerospace offerings should further support long-term business growth.
Considering these factors, ATRO appears to be a solid choice for investors seeking long-term growth opportunities in the aerospace market.
Astronics currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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- SpaceX IPO Could Put Weak Space Stocks 'Into Obscurity,' Rocket Lab CFO Says
May 12, 2026 · benzinga.com
Rocket Lab Corp. (NASDAQ:RKLB) CFO Adam Spice says a potential SpaceX IPO could be a defining moment for publicly traded space stocks, forcing investors to separate true operators from companies simply riding the space label.
- Rocket Lab Stock Advances 74% in 3 Months: Time to Take Profits?
May 12, 2026
Shares of Rocket Lab Corporation RKLB have surged 74% over the past three months, outperforming the Zacks Aerospace-Defense Equipment industry’s rise of 0.5%. However, the company remains exposed to Neutron development delays, supply-chain constraints and uncertainties tied to U.S. government programs, which could affect backlog conversion, revenue timing, margins and overall financial performance.Zacks Investment Research
Image Source: Zacks Investment Research
In contrast, some stocks from the same industry, such as Curtiss-Wright Corporation CW and Leonardo DRS, Inc. DRS, have also outperformed the industry during the same period. Shares of CW and DRS have risen 6.5% and 8.8%, respectively.
With RKLB shares rallying over the past three months, investors may hold varied perspectives. Let's examine the factors and assess the stock's investment prospects to make an informed decision.
Key Risks for RKLB
Rocket Lab reiterated that Neutron remains on track for its first launch later in 2026, though the timeline remains demanding due to ongoing engine testing, qualification work and recovery system development. Initial launches are also expected to generate lower margins as the vehicle and related systems mature. Any development or testing delays could postpone revenue growth and keep losses and cash usage elevated, which may weigh on the company’s financial performance.
Rocket Lab continues to face supply-chain and component availability challenges across its large space systems business, particularly related to optical terminals and other critical mechanisms. While acquisitions such as Motiv and Mynaric are expected to expand in-house capabilities, integrating and scaling these operations may take time. Delays in component availability or production ramp-ups could slow backlog conversion and shift revenues and cash inflows across quarters, potentially increasing volatility.
A large portion of the backlog is linked to U.S. government programs, exposing the company to budget uncertainties, procurement delays and policy changes. Regulatory approvals may add further execution risks, while any delays in program timelines could affect revenue recognition and increase dependence on external government decisions.
What’s Working in RKLB’s Favor?
Rising national security demand continues to expand Rocket Lab’s role across hypersonics, missile defense and responsive launch programs. In first-quarter 2026, the company signed 31 new Electron and HASTE launch contracts and secured five dedicated Neutron launches, taking its total contracted launch manifest to more than 70 missions.
Story Continues
Rocket Lab also won a $30 million contract for three dedicated HASTE missions for Anduril, with the first launch expected within 12 months, while recent Golden Dome-related work further strengthened its defense exposure. The steady flow of launch contracts is expected to support recurring revenues, improve mission cadence and strengthen long-term growth visibility.
Earnings Estimates for RKLB Stock
The Zacks Consensus Estimate for RKLB’s 2026 earnings per share (EPS) indicates a decline of 11.11% over the past 60 days.Zacks Investment Research
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Curtiss-Wright’s 2026 EPS calls for a rise of 0.33% in the past 60 days. The estimate for Leonardo DRS’ 2026 EPS indicates an increase of 0.79% 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.Zacks Investment Research
Image Source: Zacks Investment Research
Liquidity Position of RKLB
RKLB has a current ratio of 4.48 compared with its industry’s average of 2.17. The ratio, being more than one, indicates that RKLB possesses sufficient capital to pay off its short-term debt obligations.Zacks Investment Research
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 68.28X, a premium compared to its industry’s 12.09X on a forward 12-month Price/Sales basis.Zacks Investment Research
Image Source: Zacks Investment Research
What Should an Investor Do?
Despite Rocket Lab’s expanding role in national security and launch programs, its near-term outlook remains uncertain due to Neutron development risks, supply-chain challenges and dependence on government contracts. The stock has significantly outperformed the industry in recent months and is currently trading at a steep premium valuation relative to peers. With earnings estimates trending lower and ROIC remaining negative, 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.
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This article originally published on Zacks Investment Research (zacks.com).
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- Active Growth ETF FDG is Outperforming More Each Month YTD
May 12, 2026 · etftrends.com
Investors and advisors look for a few important factors when assessing an investment strategy. While fees and style box classifications are important considerations, few factors carry as much weight as pure performance.
