Investors interested in RKLB stock should wait for a better entry point, considering its premium valuation and high leverage.
Rocket Lab USA NASDAQ: RKLB, founded in 2006, is a leading end-to-end space company delivering reliable launch services, satellite manufacturing, spacecraft components, and on-orbit management solutions.
Rocket Lab USA NASDAQ: RKLB, a prominent player in the aerospace and defense sector and rival to SpaceX, is in the spotlight following a significant announcement this week. The news comes as RKLB continues to show impressive relative strength, an outlier in a market weighed down by rising tariffs, geopolitical uncertainty, and fears of a broader economic slowdown.
From April 2 to April 8, the S&P 500 index fell by more than 12% in response to President Donald Trump's imposition of steep "reciprocal tariffs" on imports from nearly every country around the world. The market surged back by 9.5% after Trump temporarily paused some (but not all) of his new tariffs on Wednesday -- but then swung around and gave back half of those gains on Thursday as investors further digested where the looming trade war stood.
Rocket Lab USA Inc. NASDAQ: RKLB, a mid-cap name in the aerospace and defense sector, surged to new heights in 2024, gaining widespread popularity among growth investors. But like much of the broader market in 2025, it has faced a volatile start to the year.
Rocket Lab USA, Inc. stock has been on a rollercoaster over the past week; although the stock bounced back on the tariff pause, I think it has a lot more upside to go. For the next 90 days, I think Rocket Labs will shift their manufacturing closer to their launch site in New Zealand, making them ready if tariffs stick around. The Neutron rocket, crucial for securing the $5.6 billion U.S. Space Force contract, will launch between September and December 2025 and should be the needed booster.
In the closing of the recent trading day, Rocket Lab USA, Inc. (RKLB) stood at $17.18, denoting a -1.94% change from the preceding trading day.
The stock market is in turmoil. Investors are worried about the Trump administration's tariffs on international goods and how they will affect corporate profitability.
Rocket Lab USA NASDAQ: RKLB recently made headlines after landing a $5.6 billion National Security Space Launch (NSSL) Phase 3 contract, marking a significant expansion of its defense and government contract portfolio. The award also signals strong confidence in Neutron, the company's highly anticipated medium-lift rocket, reinforcing Rocket Lab's growing role in the national security space sector.
The space economy is a fascinating investment opportunity, but there are limited pure-play space stocks to choose from. Elon Musk's SpaceX is the industry leader by a wide margin, but it's not publicly traded.
It's not always an easy task to determine which figures matter more when investing.
Rocket Lab secured a $5.6 billion NSSL Phase 3 contract, enhancing its defense and government contract portfolio and showcasing confidence in its Neutron rocket. The contract, though a framework, signifies major support for Rocket Lab's Neutron rocket, which is still under development with launches expected in 2025-2026. Rocket Lab's growth strategy includes higher launch activity, organic growth in Space Systems, and acquisitions like Mynaric, aligning with its end-to-end space solutions objective.