Rocket Lab (RKLB) Stock Rebounds On Key Neutron Milestone

Rocket Lab Corp (NASDAQ:RKLB) shares are trading higher Tuesday morning, shaking off Monday's weakness as investors cheer a major delivery for the upcoming Neutron rocket. The positive development appears to be outweighing concerns regarding a recent structural testing anomaly. Here’s what investors need to know.

• Rocket Lab shares are climbing with conviction. Why is RKLB stock surging?

Hungry Hippo Fairing Arrives In Virginia

Momentum shifted positively Tuesday morning following the company’s announcement that its “Hungry Hippo” fairing has arrived at the Wallops Island, Virginia launch site. This delivery marks a critical step toward the first flight of Neutron, Rocket Lab’s medium-lift reusable rocket.

Per Rocket Lab, the “Hungry Hippo” is a world-first captive fairing design that remains attached to the rocket throughout the mission, facilitating rapid reuse and reducing costs. Having cleared qualification testing late last year, the fairing is now being prepared for pre-launch integration at Launch Complex 3.

Monday's Volatility: Testing Setback vs. Launch Success

The rebound follows a recent pullback caused by mixed headlines. While the company celebrated the successful “The Cosmos Will See You Now” Electron mission, investors reacted cautiously to news of a Neutron testing issue.

On Jan. 21, a Neutron Stage 1 tank ruptured during a hydrostatic pressure test in California. Rocket Lab clarified that the tank was pushed beyond flight loads to validate structural margins, a standard step in development. With no significant damage to facilities and a replacement tank already in production, the program continues without major delay.

Key Price Levels That Could Define Movement

Rocket Lab is currently trading 0.4% above its 20-day simple moving average (SMA) and 38.7% above its 100-day SMA, demonstrating strength. Shares have surged 184.17% over the past 12 months and are currently positioned closer to their 52-week highs than lows.

The RSI is at 51.53, which is considered neutral territory, while MACD is below its signal line, indicating bearish pressure on the stock. The combination of neutral RSI and bearish MACD suggests mixed momentum.

• Key Resistance: $99.50
• Key Support: $67.00

Rocket Lab’s Business Model

Rocket Lab Corp is engaged in space, building rockets, and spacecraft. It provides end-to-end mission services that offer frequent and reliable access to space for civil, defense and commercial markets. The company designs and manufactures the Electron and Neutron launch vehicles and the Photon satellite platform.

The recent successful launch highlights Rocket Lab’s capabilities, while the testing setback with the Neutron rocket underscores the challenges in the aerospace sector. As a key player in the small-launch market, Rocket Lab’s performance is crucial for investors looking at the future of space exploration and satellite deployment.

Revenue Surge Signals Positive Momentum Ahead

Investors are looking ahead to the next earnings report on Feb. 26.

• EPS Estimate: Loss of 9 cents (Up from loss of 10 cents YoY)
• Revenue Estimate: $178.07 million (Up from $132.39 million YoY)

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $64.00. Recent analyst moves include:

• Goldman Sachs: Neutral (Raises Target to $69.00) (Jan. 20)
• BofA Securities: Buy (Raises Target to $120.00) (Jan. 20)
• Morgan Stanley: Upgraded to Overweight (Raises Target to $105.00) (Jan. 16)

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for Rocket Lab, highlighting its strengths and weaknesses compared to the broader market:

• Momentum: Strong (Score: 96.41) — Stock is outperforming the broader market.

The Verdict: Rocket Lab’s Benzinga Edge signal reveals a strong momentum score, indicating that the stock is currently outperforming the broader market. Investors should remain optimistic about the stock’s potential, particularly as it navigates through its recent challenges and prepares for upcoming earnings.

Top ETF Exposure

• SPDR S&P Aerospace & Defense ETF (NYSE:XAR): 5.66% Weight
• ARK Autonomous Technology & Robotics ETF (BATS:ARKQ): 4.30% Weight
• First Trust Indxx Aerospace & Defense ETF (NYSE:MISL): 4.81% Weight

Significance: Because RKLB carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

RKLB Shares Rebound Tuesday

RKLB Price Action: Rocket Lab shares were up 5.79% at $85.14 at the time of publication on Tuesday, according to Benzinga Pro data.

Image: Shutterstock