RKLB Outperforms Industry in the Past Month: Time to Buy the Stock?

Core Insights - Rocket Lab USA, Inc. (RKLB) stock has increased by 66.9% in the past month, significantly outperforming the Zacks Aerospace-Defense Equipment industry growth of 11%, the Aerospace sector's growth of 6.9%, and the S&P 500's rise of 0.8% [1][8]. Performance Comparison - Other defense equipment stocks, such as Kratos Defense & Security Solutions (KTOS) and AeroVironment (AVAV), have also shown strong performance, with KTOS shares gaining 19.4% and AVAV shares increasing by 12.2% in the same period [2]. Factors Supporting Growth - RKLB's recent performance is attributed to notable milestones and contract wins that have bolstered investor confidence [4]. - The company successfully launched its 21st Electron rocket in December 2025, deploying an Earth-imaging satellite for iQPS, which highlights its consistent execution and growing presence in the commercial launch market [5]. - RKLB was awarded an $816 million contract by the U.S. Space Development Agency to design and manufacture 18 satellites for the Tracking Layer Tranche 3 program, reinforcing its role in national security space [6][9]. - The successful STP-S30 mission for the U.S. Space Force was completed five months ahead of schedule, showcasing RKLB's reliable execution in defense and space programs [10]. Financial Outlook - The Zacks Consensus Estimate for RKLB's 2026 revenues indicates a solid improvement of 42.2% from the prior year, with estimates for earnings also showing significant increases [13]. - Current estimates for RKLB's revenues for the current quarter (December 2025) stand at $178.38 million, with a year-over-year growth estimate of 34.74% [14]. - The earnings estimates for the current year indicate a year-over-year growth of 47.37% [15]. Valuation Metrics - RKLB shares are trading at a premium, with a forward 12-month Price/Sales (P/S F12M) ratio of 53.41X, compared to the industry average of 12.32X [17]. - Industry peers, KTOS and AVAV, are trading at lower P/S F12M ratios of 9.69X and 7.09X, respectively [18]. Liquidity Position - RKLB has a current ratio of 3.18, indicating sufficient capital to meet short-term debt obligations [19].