Rocket Lab Surges 43.7% in a Year: Is There More Room to Run?

Rocket Lab Corporation RKLB shares have risen 43.7% over the past year, outperforming the Zacks Aerospace-Defense Equipment industry’s growth of 2.7%. The company is driving growth by expanding its end-to-end space platform, advancing Neutron, and strengthening launch and space systems capabilities. The Mynaric and Motiv acquisitions, along with rising U.S. national security opportunities, support long-term growth.

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Meanwhile, stocks like Leonardo DRS, Inc. DRS and TransDigm Group Inc. TDG have underperformed the industry during the same period. Shares of DRS and TDG have fallen 9.8% and 9.6%, respectively.

With RKLB shares gaining over the past year, investors may have positive views. Let’s examine the factors and assess the stock’s investment prospects to make an informed decision.

Factors Boosting RKLB Stock's Growth

Rocket Lab is strengthening its end-to-end space platform across launch services and space systems. Electron and HASTE support commercial and government missions, while Neutron is expected to expand its addressable market into medium-lift constellation and defense launches. The Mynaric and Motiv acquisitions further enhance optical communications, satellite mechanisms and robotics capabilities, strengthening vertical integration. 

The company made significant progress in the second quarter of 2026, advancing Neutron qualification testing, first-flight hardware integration, Archimedes engine testing and reusable fairing systems. Rocket Lab had completed 87 Electron missions and delivered more than 250 spacecraft through June 30. Its backlog reached $2.36 billion, providing greater visibility into future revenues.

In August 2026, Rocket Lab announced its onboarding to the U.S. Space Force’s NITE-STAR IDIQ program, which has a $981 million ceiling. The selection allows Rocket Lab to compete for future task orders covering space and ground systems, digital environments and mission operations, expanding its opportunities in national security space and strengthening its position as an end-to-end space solutions provider.

Earnings Estimates for RKLB Stock

The Zacks Consensus Estimate for RKLB’s 2026 earnings per share (EPS) indicates a rise of 44.44% over the past 60 days.

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The Zacks Consensus Estimate for Leonardo DRS’ 2026 EPS calls for a jump of 5.38% in the past 60 days. The estimate for TransDigm Group’s fiscal 2026 EPS implies an increase of 2.47% over the same period.

Debt Position of RKLB

Currently, Rocket Lab’s total debt to capital is 0.83%, lower than the industry’s average of 61.47%. It indicates that the company can run its business efficiently with much lower debt levels than its industry peers.

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Liquidity Position of RKLB

RKLB has a current ratio of 5.48 compared with its industry’s average of 2.06. The ratio, being more than one, indicates that RKLB possesses sufficient capital to pay off its short-term debt obligations. 

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Its industry peers, Leonardo DRS and TransDigm Group, also maintain current ratios above one. DRS has a current ratio of 1.92, while TDG holds 3.02.

RKLB Stock Trades at a Premium

Rocket Lab is currently trading at 31.3X, a premium compared to its industry’s 7.64X on a forward 12-month Price/Sales basis.

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What Should an Investor Do?

Rocket Lab is benefiting from expanding launch and space systems capabilities, progress on Neutron and rising national security opportunities. The Mynaric and Motiv acquisitions further strengthen vertical integration, while its growing backlog and broader end-to-end space platform support long-term growth prospects.

Given RKLB’s strong share price performance, improving earnings estimates, lower debt levels and solid liquidity position, investors may consider including this Zacks Rank #2 (Buy) stock in their portfolios at current levels. 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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