Buy Rocket Lab Stock

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Buy Rocket Lab Stock

Should You Buy Rocket Lab Stock?

Rocket Lab is gaining the investors' attention for all the right reasons. It has made important acquisitions and also made big moves in the rocket launch space. In fact, many think Rocket Lab is emerging as a competitor to SpaceX.

Over the past year, the Rocket Lab stock price increased by 118%. Despite this rise, many think more upside is ahead for the Rocket Lab stock.

Rocket Lab Offers Launch Services

Rocket Lab is basically a rocket launch company. It provides launch services to customers. The company announced it has signed 31 contracts in Q1 2026. To put that into perspective, the number of launch contracts in just one quarter was more than what it did in 2025.

The sales of Rocket Lab also jumped 64% and touched $200 million in the quarter. In addition, the losses have shrunk to just $0.07 per share.

Rocket Lab has also announced its plan to buy Iridium Communications for $8 billion. Iridium is a satellite-based mobile communication service provider. The company has around $2.5 million subscribers.

The purchase will likely close in 1H2027 and will give Rocket Lab a stake in the satellite communication industry. What's impressive is that Iridium is profitable and had net earnings of $114 million in 2025.

When we consider the rising sales, the Iridium acquisition, and the company's position in the rocket launch space, it becomes clear why Rocket Lab stock is a buy!

However, it is worth mentioning that Rocket Lab is not profitable yet. In Q1, the losses were $45 million, and the shares are trading at a P/S ratio of 82. Meanwhile, the average P/S ratio of the tech sector is just 9.

So, if you do decide to buy Rocket Lab stock, then you should keep these things in mind. Once the company starts to make profits, its P/S ratio will automatically come down to more reasonable levels.

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