Rocket Lab: A Space Race Winner To Buy

Summary

  • Rocket Lab's Q4 results showed a revenue increase to $132.4 million, but Q1 guidance disappointed investors, leading to a stock price drop.
  • Despite a stretched valuation, Rocket Lab's stock is now more attractive, trading below 12x 2026 sales, presenting a better entry point.
  • The Neutron launch is delayed to the second half of 2025, with significant work remaining, posing risks to the timeline.
  • I believe Rocket Lab remains a strong long-term buy, with a compelling near-term buy case if the stock drops below $15.75.
  • Looking for a helping hand in the market? Members of The Aerospace Forum get exclusive ideas and guidance to navigate any climate. Learn More »
Launch Pad Complex: Successful Rocket Launching with Crew on a Space Exploration Mission. Flying Spaceship Blasts Flames and Smoke on a Take-Off. Humanity in Space, Conquering Universe

gorodenkoff

Rocket Lab (NASDAQ:RKLB) stock has tumbled after it provided Q4 results. It was mostly the outlook for Q1 that disappointed investors. In one of my previous pieces, I already pointed out that the stock has a stretched valuation.

With a

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This article was written by

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Dhierin-Perkash Bechai is an aerospace, defense and airline analyst.

Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of RKLB either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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