Down Nearly 65% From Its 52-Week High, Has Rocket Lab Stock Become a Bargain Buy?
The fast-growing rocket company still has a ton more growth on the horizon.
Rocket Lab's stock has dropped nearly 65% from its 52-week high since going public, with shares closing at $54 on Monday, down 64% from its peak of $151 in late May. The space-focused company, valued at $34 billion, still holds significant growth potential in the industry. Rocket Lab operates on multiple fronts – launching rockets, building satellites, and spacecraft – which could benefit from the expanding space economy.
Earnings in August revealed a remarkable 62% year-over-year revenue growth, reaching $234 million. Rocket Lab's Electron rocket can carry payloads up to 300 kg, while its larger Neutron rocket can handle up to 13,000 kg, and even 15,000 kg for expendable missions. Neutron's delayed launch next year has disappointed investors, yet it remains a potential catalyst for Rocket Lab's future growth.
Despite being unprofitable and facing high spending, the stock might be a bargain buy for risk-tolerant investors, potentially rekindling excitement upon Neutron's launch.
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