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

Rocket Lab Corporation RKLB stock has surged 21.9% in the past three months, surpassing the 15.8% growth of the Zacks Aerospace-Defense Equipment industry. It has also outperformed the Zacks Aerospace sector’s growth of 13.2% and the S&P 500’s decline of 2.5%.

Other defense equipment stocks, such as Curtiss-Wright CW and Astronics ATRO, have also outpaced the industry in the past three months. Shares of CW have gained 22.8%, while shares of ATRO have rallied 47.2%.

With RKLB’s recent strong market performance, some investors may feel encouraged to invest quickly. However, it is important to carefully examine the factors behind this growth before making a decision. The key consideration is whether the company can maintain this momentum or if potential risks may affect its future growth. A closer evaluation can help investors form a more balanced and informed view.

Tailwinds for RKLB

RKLB’s recent momentum is supported by steady launch activity and expanding government contracts, which continue to strengthen investor confidence.

In March 2026, Rocket Lab completed its 83rd  launch with the Electron rocket through the mission “Insight At Speed Is A Friend Indeed”, deploying a commercial satellite for a confidential customer. The launch took place less than a week after another mission that supported a hypersonic test flight for the Department of War’s Defense Innovation Unit using the HASTE vehicle. This rapid turnaround highlights Rocket Lab’s strong operational capabilities and reinforces its position as a leading provider of small satellite launch services.

In February 2026, Rocket Lab also secured a dedicated mission named Cassowary Vex for the Defense Innovation Unit. The mission will launch on the HASTE rocket from the Mid Atlantic Regional Spaceport in Virginia. This contract further reflects Rocket Lab’s growing involvement in national security space programs and rising demand for its responsive launch services.

Risks to Consider Before Choosing RKLB

Rocket Lab has strong near-term growth potential, but investors should also keep certain risks in mind. One key concern is the company’s rising operating costs, which increased 42.5% in 2025 compared with 2024.

The company continues to invest heavily in developing advanced technologies such as the Neutron rocket, satellite platforms and other space systems. While these investments are important for long-term growth, expenses have been growing faster than revenues, leading to continued losses in recent quarters and possibly in the near term as well.

RKLB: A Glance at Near-Term Estimates

The Zacks Consensus Estimate for RKLB’s 2026 revenues indicates a solid improvement of 42% 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 Trading at a Premium

RKLB shares are trading at a premium, with its forward 12-month Price/Sales (P/S F12M) being 40.78X compared with its industry’s average of 12.48X.

Its industry peers, Curtiss-Wright and Astronics, are trading at a discount in comparison with RKLB. CW is trading at a P/S F12M of 6.66X, while ATRO is trading at a P/S F12M of 2.76X.

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, Curtiss-Wright and Astronics, also maintain current ratios above one. CW has a current ratio of 1.44, while ATRO holds 3.10.

Conclusion

Investors considering RKLB may want to wait for a more attractive entry point given its premium valuation and consistently high operating costs. However, those who already hold this Zacks Rank #3 (Hold) stock may consider keeping their positions, supported by its strong long-term prospects, solid liquidity, positive market performance and expectations of continued sales growth. 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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