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

Rocket Lab USA, Inc. RKLB stock has surged 66.9% in the past month, surpassing the 11% growth of the Zacks Aerospace-Defense Equipment industry. It has also outperformed the Zacks Aerospace sector’s growth of 6.9% and the S&P 500’s rise of 0.8%.

Other defense equipment stocks, such as Kratos Defense & Security Solutions KTOS and AeroVironment AVAV, have also outpaced the industry in the past month. Shares of KTOS have gained 19.4%, while shares of AVAV have rallied 12.2%.

With RKLB’s recent market gains, some investors may feel inclined to buy the stock quickly. However, it is important to examine the factors behind this strong performance before taking any action. The key consideration is whether the company can maintain this momentum or if certain risks could limit future growth. A closer review helps investors make a more informed and balanced decision.

Tailwinds for RKLB

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

In December 2025, Rocket Lab successfully launched its 21st Electron rocket of the year from Mahia, New Zealand. The mission deployed an Earth-imaging satellite for a Japan-based company, the Institute for Q-shu Pioneers of Space (iQPS), under a multi-launch agreement. This launch reflects Rocket Lab’s consistent execution and supports its growing presence in the global commercial launch market.

In the same month, Rocket Lab was awarded a contract by the U.S. Space Development Agency to design and manufacture 18 satellites for the Tracking Layer Tranche 3 program. The $816 million contract includes satellites equipped with advanced missile warning and tracking sensors to support global detection of emerging missile threats. This award reinforces Rocket Lab’s growing role in national security space and supports its long-term growth outlook through satellite production and related subsystem opportunities.

Moreover, Rocket Lab successfully launched the STP-S30 mission for the U.S. Space Force’s Space Systems Command. The mission was completed five months ahead of schedule and supported the testing of key space technologies. This launch reflects Rocket Lab’s reliable execution and growing role in U.S. defense and space programs.

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. In the first nine months of 2025, operating expenses have increased 45.6% compared with the first nine months of 2024.

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: A Glance at Near-Term Estimates

The Zacks Consensus Estimate for RKLB’s 2026 revenues indicates a solid improvement of 42.2% from the prior-year level. The estimate for its earnings also calls for a solid increase from the prior-year quarter.

The upward revision in its 2026 earnings estimate over the past 60 days reflects increasing analysts' confidence in its earnings growth prospects.

RKLB Shares Are Trading at a Premium

RKLB shares are trading at a premium, with its forward 12-month Price/Sales (P/S F12M) being 53.41X compared with its industry’s average of 12.32X.

Its industry peers, Kratos and AeroVironment, are trading at a discount in comparison with RKLB. KTOS is trading at a P/S F12M of 9.69X, while AVAV is trading at a P/S F12M of 7.09X.

Liquidity Position of RKLB

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 AeroVironment, also maintain current ratios above one. Kratos has a current ratio of 4.30, while AeroVironment holds 5.08.

Conclusion

Investors interested in RKLB should wait for a better entry point, considering its premium valuation and 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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