Rocket Lab's stock has surged, with potential for future profitability, but may be overvalued

From Nasdaq: 2024-12-11 06:45:00

The space economy is booming, with Jeff Bezos predicting Blue Origin will surpass Amazon’s market cap. Rocket Lab (NASDAQ: RKLB) offers individual investors a way into the space sector, with a 366% stock increase this year. Founder Peter Beck’s vision has led Rocket Lab to dominate the space economy, with plans for the Neutron rocket.

Rocket Lab’s revenue has grown by 551% since going public, hitting $364 million over the past year. The company’s future lies in the Neutron rocket, set to generate significant revenue once operational. With a P/S ratio of 33.4, Rocket Lab’s stock may be overvalued post-rally, but it holds promise for long-term investors.

Investors may be cautious about Rocket Lab’s stock valuation, given its meteoric rise. While the company has potential for future profitability, its current price levels are considered overextended. A “Double Down” stock recommendation could offer a second chance at a lucrative opportunity with three promising companies.

John Mackey, former CEO of Whole Foods Market and a member of The Motley Fool’s board, is involved with the company’s analysis. The Motley Fool recommends Rocket Lab USA and Amazon. Be cautious with Rocket Lab stock at its current valuation.



Read more at Nasdaq: Rocket Lab Stock: Buy, Sell, or Hold?