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

Shares of Rocket Lab USA, Inc. RKLB have gained 70.7% in the past six months, surpassing the 6.3% growth of the Zacks Aerospace-Defense Equipment industry. It also outperformed the Zacks Aerospace sector’s growth of 5.4% and the S&P 500’s rise of 17.2%.

Other defense equipment stocks, such as Kratos Defense & Security Solutions KTOS and Curtiss-Wright Corporation CW, have also outperformed the industry in the past six months. Shares of KTOS have gained 91.9%, while shares of CW have gained 21.5%.

With RKLB’s recent gains in the market, some investors may be tempted to buy the stock immediately. However, it is important to look deeper into what is driving this strong performance before making any decision. The key question is whether the company can sustain this momentum or if there are potential risks that could slow its growth. This helps investors make a more informed and thoughtful choice.

Tailwinds for RKLB

RKLB’s recent performance appears to be supported by notable milestones and contract wins, which have helped sustain investor confidence.

In November 2025, Rocket Lab achieved an important milestone by successfully launching a suborbital mission for the Defense Innovation Unit and the Missile Defense Agency using its HASTE vehicle. The mission carried a main payload from the Johns Hopkins University Applied Physics Laboratory along with several secondary payloads. This launch supports the testing of advanced missile-defense technologies and strengthens Rocket Lab’s role in national security missions.

In the same month, Rocket Lab reached another key achievement when two Explorer-class spacecraft built for NASA and the University of California, Berkeley’s Space Sciences Laboratory were successfully launched for the ESCAPADE mission to Mars. These spacecraft will study the planet’s magnetosphere and highlight Rocket Lab’s growing involvement in deep-space research.

RKLB is also preparing for the first launch of the Neutron rocket, which is expected in the second half of 2025. This should significantly expand Rocket Lab’s launch capacity in the United States and will help it move beyond small satellite launches to compete with larger players in the space industry.

Risks to Consider Before Choosing RKLB

Rocket Lab shows strong growth potential in the near term, but investors should also keep in mind some important risks. One key concern is the company’s high operating costs. Rocket Lab continues to spend heavily on the development of advanced technologies, such as the Neutron rocket, satellite platforms and other space systems. These expenses often exceed revenue growth and have resulted in ongoing losses in recent quarters and might also continue to do so in the near term.

RKLB’s Near-Term Estimates

The Zacks Consensus Estimate for RKLB’s 2025 revenues indicates a solid improvement of 37.7% from the prior-year level. The estimate for its earnings also indicates a solid improvement from the prior-year quarter.

The upward revision in its 2025 earnings estimate over the past 60 days reflects increasing analysts' confidence in its earnings growth prospects.

RKLB Shares Trading at a Premium

RKLB shares are trading at a premium, with its forward 12-month Price/Sales (P/S F12M) being 31.56X compared with its industry’s average of 9.74X.

Its industry peers, Kratos and Curtiss-Wright, are trading at a discount in comparison with RKLB. KTOS is trading at a P/S F12M of 8.32X, while CW is trading at a P/S F12M of 5.55X.

Liquidity Position

RKLB has a current ratio of 3.18. The ratio, being more than one, indicates that RKLB possesses sufficient capital to pay off its short-term debt obligations.

Its industry peers, Kratos and Curtiss-Wright, also maintain current ratios above one. Kratos has a current ratio of 4.80, while Curtiss-Wright stands at 1.75.

Conclusion

Investors interested in RKLB should wait for a better entry point, considering its premium valuation and the persistent high operating costs. However, those who already own this Zacks Rank #3 (Hold) stock may choose to maintain their positions, taking into account its solid long-term prospects, strong liquidity, performance at the bourses and strong sales growth expectations.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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