Rocket Lab Gains 2.2% in the Past 3 Months: Should You Buy the Stock?

Core Insights - Rocket Lab USA, Inc. (RKLB) shares have increased by 2.2% over the past three months, outperforming the Zacks Aerospace-Defense Equipment industry growth of 1.1%, but underperforming the Zacks Aerospace sector's growth of 3.7% and the S&P 500's rise of 7.9% [1] - Other defense equipment stocks, such as AAR Corp. (AIR) and Curtiss-Wright Corporation (CW), have shown stronger performance, with AIR gaining 6.3% and CW gaining 12.1% in the same period [2] Performance Drivers - RKLB's recent performance is attributed to strong quarterly results, notable milestones, and contract wins, which have bolstered investor confidence [4] - The company reported a revenue growth of 48% in its third-quarter 2025 results, alongside an improvement in net losses compared to the previous year [4] - Significant milestones include the successful launch of two Explorer-class spacecraft for NASA and the University of California, Berkeley, for the ESCAPADE mission to Mars [5] - RKLB completed its 74th Electron mission, deploying a satellite for the Institute for Q-shu Pioneers of Space (iQPS), reinforcing its position as a primary launch partner for Earth-imaging [6] - The company is preparing for its first Neutron rocket launch, expected in the second half of 2025, which will expand its launch capacity and competitive positioning in the space industry [10] Financial Estimates - The Zacks Consensus Estimate for RKLB's 2025 revenues indicates a solid improvement of 36% from the prior year, with estimates for earnings also showing significant growth [12] - Current estimates for Q4 2025 revenue stand at $176.40 million, with a year-over-year growth estimate of 33.24% [13] Valuation Metrics - RKLB shares are trading at a premium, with a forward 12-month Price/Sales (P/S F12M) ratio of 26.59X, compared to the industry average of 9.28X [15] - Industry peers AIR and CW are trading at lower P/S F12M ratios of 0.98X and 5.57X, respectively [16]