Rocket Lab Gains 21.9% in the Past 3 Months: Should You Buy?

Core Insights - Rocket Lab Corporation (RKLB) stock has increased by 21.9% over the past three months, outperforming the Zacks Aerospace-Defense Equipment industry growth of 15.8%, the Aerospace sector's growth of 13.2%, and the S&P 500's decline of 2.5% [1][8] Group 1: Recent Performance - Other defense equipment stocks, such as Curtiss-Wright (CW) and Astronics (ATRO), have also shown strong performance, with CW shares gaining 22.8% and ATRO shares rallying 47.2% in the same period [2] - RKLB's recent momentum is attributed to steady launch activity and expanding government contracts, which bolster investor confidence [4] Group 2: Operational Highlights - Rocket Lab completed its 83rd launch with the Electron rocket in March 2026, deploying a commercial satellite for a confidential customer, showcasing its operational capabilities [5] - In February 2026, Rocket Lab secured a dedicated mission named Cassowary Vex for the Defense Innovation Unit, further indicating its growing involvement in national security space programs [6] Group 3: Financial Metrics - RKLB's operating costs rose by 42.5% in 2025 compared to 2024, as the company invests in the development of the Neutron rocket and other space systems [8][10] - The Zacks Consensus Estimate for RKLB's 2026 revenues indicates a solid improvement of 42% from the prior year, with estimates for earnings also showing significant increases [11] - RKLB shares are trading at a premium, with a forward 12-month Price/Sales (P/S F12M) ratio of 40.78X compared to the industry's average of 12.48X [14] Group 4: 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]