Is Rocket Lab USA Stock a Buy Now?

Core Insights - Rocket Lab USA achieved record milestones in the aerospace industry last year, becoming the No. 2 launch company in the U.S. for small satellite launches, trailing only SpaceX [1][3] - The company's stock surged 480% over the past year, leading to a high valuation, prompting an analysis of its growth prospects [2][11] Group 1: Business Performance - Rocket Lab successfully completed 16 launches last year, marking a 60% increase compared to 2023, solidifying its position in the small satellite launch market [3] - Revenue grew by 65% to $304 million in the first three quarters of last year, with gross profit more than doubling to $79 million [5] - The company has a backlog of over $1 billion for future launches, indicating strong demand for its services [10] Group 2: Competitive Landscape - Rocket Lab faces significant competition from SpaceX, which completed 134 orbital launches last year, highlighting the disparity in payload capacities between the two companies [6][7] - The Electron rocket can carry up to 660 pounds, while SpaceX's Falcon 9 can carry up to 13,000 kilograms (about 28,600 pounds) [7] Group 3: Future Developments - Rocket Lab is developing the Neutron rocket, which aims to enhance payload capacity to 28,600 pounds, potentially allowing the company to earn $50 million to $55 million per launch [8][9] - The Neutron rocket is expected to launch by mid-2025, with the first engine test completed in August [9] Group 4: Financial Outlook - The stock trades at nearly 38 times trailing-12-month sales, with projections of $605 million in revenue by 2025, but positive earnings per share (EPS) are not expected until 2026 [12] - The company's progress with the Neutron rocket could be a significant inflection point, but delays in launches could impact revenue timing [13]