Rocket Lab Deploys 5 Satellites for French IoT Operator: To Buy the Stock or Let Go?

Core Viewpoint - Rocket Lab USA, Inc. has successfully completed its 59th Electron mission, enhancing its position in the space launch services market and potentially attracting investor interest in RKLB stock [1][2]. Company Performance - Rocket Lab's shares have increased by 480.7% over the past year, outperforming the Zacks aerospace-defense industry's decline of 4.5%, the broader Zacks Aerospace sector's rise of 5.8%, and the S&P 500's gain of 21% [3]. - The company's revenues surged by 55% year over year in Q3 2024, contributing to the stock's price gains [8]. Market Dynamics - The commercial space technology market has expanded significantly, driven by rising global tensions and increased demand for military satellite deployments, which has positively impacted Rocket Lab's launch services [5]. - The global space economy is projected to reach $1.8 trillion by 2035, providing substantial growth opportunities for Rocket Lab [9]. Product Development - Rocket Lab's Electron small launch vehicle has become the leading small satellite launcher, successfully deploying over 197 spacecraft across 49 missions since its debut in 2017 [7]. - The company is developing a reusable-ready Neutron launch vehicle, which will significantly expand its payload capacity and support various spacecraft configurations [11]. Future Estimates - The Zacks Consensus Estimate for RKLB's Q1 and full-year 2025 sales suggests improvements of 48.8% and 31.6% year over year, respectively [13]. Valuation - RKLB's forward 12-month price-to-sales ratio is 22.56X, significantly higher than the industry's average of 1.61X, indicating a premium valuation [18].