Rocket Lab Corporation (RKLB) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - Rocket Lab Corporation (RKLB) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook driven by an upward trend in earnings estimates [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often base their valuation models on earnings estimates, leading to significant buying or selling actions that affect stock prices [4]. Recent Performance and Outlook - For the fiscal year ending December 2025, Rocket Lab is expected to earn -$0.24 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 7.1% over the past three months [8]. - The upgrade reflects an improvement in Rocket Lab's underlying business, suggesting that investors may push the stock higher in response to this trend [5]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - Rocket Lab's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].