RKLB Outperforms Industry in Past 6 Months: Should You Buy the Stock?

Core Insights - Rocket Lab USA, Inc. (RKLB) shares have increased by 70.7% over the past six months, outperforming the Zacks Aerospace-Defense Equipment industry growth of 6.3%, the Aerospace sector's growth of 5.4%, and the S&P 500's rise of 17.2% [1] Performance Comparison - Other defense equipment stocks, such as Kratos Defense & Security Solutions (KTOS) and Curtiss-Wright Corporation (CW), have also shown strong performance, with KTOS gaining 91.9% and CW gaining 21.5% in the same period [3] Growth Drivers - RKLB's recent stock performance is attributed to significant milestones and contract wins that have bolstered investor confidence [5] - In November 2025, Rocket Lab successfully launched a suborbital mission for the Defense Innovation Unit and the Missile Defense Agency, which supports advanced missile-defense technology testing [6] - The same month, Rocket Lab launched two Explorer-class spacecraft for NASA and the University of California, Berkeley, as part of the ESCAPADE mission to Mars, showcasing its involvement in deep-space research [7] - The upcoming launch of the Neutron rocket, expected in the second half of 2025, is anticipated to significantly expand Rocket Lab's launch capacity in the U.S. [9] Financial Estimates - The Zacks Consensus Estimate for RKLB's 2025 revenues indicates a 37.7% improvement from the previous year, with current quarter estimates at $178.38 million and next year estimates at $853.77 million [11] - Earnings estimates also show a positive trend, with a year-over-year growth estimate of 47.37% for the current year [13] Valuation Metrics - RKLB shares are trading at a premium, with a forward 12-month Price/Sales (P/S F12M) ratio of 31.56X, compared to the industry average of 9.74X [14] - Industry peers, KTOS and CW, are trading at lower P/S F12M ratios of 8.32X and 5.55X, respectively [15] Liquidity Position - RKLB has a current ratio of 3.18, indicating sufficient capital to meet short-term debt obligations, which is favorable compared to its industry peers [16]