Should You Buy Rocket Lab While It’s Below $27?
From Yahoo Finance: 2025-05-24 07:07:00
Rocket Lab stock experienced a drop after earnings but quickly recovered, now priced at around $26 per share. Recent press releases have boosted momentum, but the stock is 9% higher than pre-earnings miss. A potential sale may occur if the Neutron rocket launch is delayed. Rocket Lab is showing promise with new contracts, including one with the U.S. Air Force Research Laboratory for point-to-point cargo transportation by rocket. NASA has also contracted Rocket Lab to launch the Aspera spacecraft for galaxy studies. Another successful launch included a synthetic aperture radar launch for Japan’s Institute for Q-shu Pioneers of Space, Inc. and a capsule launch for Varda Space Industries. Rocket Lab’s stock has rebounded to $26 after an earnings miss, showing a 9% increase but still 20% below its January high. The company is expected to become profitable in the future, with analysts predicting $3.5 billion in revenue and $1.1 billion in profit. However, these forecasts are based on future earnings, which may not align with current performance. Rocket Lab’s stock currently has a negative earnings multiple and is priced at more than 27 times trailing-12-month sales, making it expensive based on current performance. The stock may become cheaper if momentum investors are spooked by a potential delay in the Neutron rocket launch. This could lead to a decrease in stock price without impacting long-term growth prospects. Rocket Lab stock may not be a buy at $26, but if the price drops, it could become more attractive for investors. The Motley Fool Stock Advisor team has identified 10 stocks with high potential returns, excluding Rocket Lab USA. Stock Advisor has a total average return of 963%, outperforming the S&P 500. Consider joining Stock Advisor for access to their top 10 list and potential investment opportunities.