Rocket Lab and The Trade Desk Are 2 Beaten-Down Stocks to Buy Before 2027
Both stocks have shed most of their value. Did Monday night's reports finally make them worth owning?
Rocket Lab (RKLB) and The Trade Desk (TTD) are two stocks that have been underperforming recently. Rocket Lab saw its share price drop to $58.86 after a record high of $150.23 in May. The Trade Desk closed at $14.93, down 87% from its 2024 price. Both companies reported their third-quarter results after Monday's close. Rocket Lab's revenue increased by 73% year-over-year to $268 million, while its backlog grew by 52% to $3.57 billion.
The company also signed $515 million in contracts for its reusable rocket, Neutron, giving it 16 signed missions before its first flight. Rocket Lab's stock is now valued at around $40 billion, despite a recent delay in Neutron's launch. The Trade Desk's revenue fell slightly in the third quarter, but it still managed to generate $565 million in free cash flow year-over-year.
The company also added $731 million to its buyback authorization, which is about 14% of its current market value. Both stocks show potential, with Rocket Lab focusing on the success of Neutron and The Trade Desk aiming for a quarter of revenue growth. Investors may want to consider adding small positions in both companies, particularly if they see positive developments in 2027.
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