Rocket Lab's surging 70.7% rally spotlights new mission wins and rising sales expectations, but premium valuation keeps entry timing critical.
I'm upgrading Rocket Lab to a strong buy as technicals and fundamentals align, with stabilization around the $40 level. Momentum is reversing, supported by bullish RSI, surging volume, and recent recognition as New Zealand's Company of the Year. RKLB's 2026 roadmap and Neutron's commercialization are critical catalysts that defend the current valuation.
Rocket Lab is growing revenue above 50% year-over-year, far outpacing the sector median of roughly 4%, signaling rapid commercial scaling. Q3 delivered record revenue of $155 million with 48% YoY growth and 17 new Electron launch contracts added to backlog. Expanding defense programs, including back-to-back HASTE missions and the Geost acquisition, significantly broaden Rocket Lab's national security market exposure.
Rocket Lab (RKLB) possesses a significant knowledge and trust moat in rocket launches, making customer relationships highly sticky, especially in government sectors. RKLB's backlog is 57% government orders, reflecting its strategic focus on national security and intelligence applications through satellites, solar cells, and key acquisitions. Acquisitions of Mynaric and Geost position RKLB for European government contracts and enable vertical integration, enhancing its ability to deliver mission-critical payloads.
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Rocket Lab and Intuitive Machines build 2025 momentum as missions, contracts and expanding capabilities draw growing investor attention.
Rocket Lab NASDAQ: RKLB has been one of the most explosive names in the aerospace and defense sector over the past year. The company has transformed from a niche small-cap into a mainstream space-industry favorite, now carrying a roughly $23 billion market cap.
RKLB stock has dropped 33.3% over the previous 21 trading days. This steep drop is closely associated with renewed investor worries regarding the Neutron rocket program.
Rocket Lab Corporation reported strong Q3 2025 results with 48% revenue growth and improved gross margins, despite the slippage of Neutron into Q1 next year. I also see growing contribution from RKLB's space systems and HASTE, with services revenue up 101% YOY, two back-to-back HASTE missions in Q3, and Q4 non-GAAP gross margin guided to 43–45%. The Neutron platform and $0.5B SDA program are the main catalysts in my watchlist, but schedule slippage to hardware arrival at LC-3 in Q1 2026 makes Neutron timing a risk.
RKLB expands its in-house spacecraft capabilities as new NASA missions and tech demos underscore its growing role in complex space systems.
Rocket Lab stock has reset after euphoria faded, now reflecting realistic Neutron development risks and timeline delays. Neutron rocket's first launch is delayed to 2026 with costs rising to $360 million, highlighting the complexity and risk of the project. Q3 results showed 48% revenue growth and a growing $1.1 billion backlog, supporting strong long-term growth prospects despite near-term challenges.
Rocket Lab Corporation is rated a "Buy" after a 40%+ correction, presenting a compelling long-term entry point despite recent volatility. Rocket Lab's Q3 2025 results showed strong revenue growth, record Electron launch bookings, expanding international reach, and a $1.1 billion backlog supporting future growth. Neutron launch delays to 2026 and increased program costs are manageable, with peak R&D spending nearing and Space Systems segment driving margin expansion.