The Meteoric Rise of Rocket Lab: A Space Stock to Watch

Key Points

• RKLB has surged nearly 700% over the past year as the company evolves from a niche satellite launch provider into a vertically integrated aerospace leader.
• Recent milestones, such as the T2TL-Beta contract and a record launch pace, have boosted momentum.
• Analysts remain bullish, though valuation concerns are growing based on the consensus price target.

Rocket Lab USA NASDAQ: RKLB has quickly evolved from a niche launch provider into one of the most exciting space and defense industry players.

With shares up nearly 700% over the past 12 months, the stock has garnered significant attention, and for good reason. 

Rocket Lab continues to outperform through execution, momentum, and meaningful contract wins.

Rocket Lab's story is becoming hard to ignore for investors who are just discovering the company.

From Launch Provider to Full-Spectrum Space Company

Rocket Lab was founded in 2006 by CEO Peter Beck and went public via SPAC in 2021. Initially known for its small satellite launch capabilities via its Electron rocket, the company has since expanded into spacecraft manufacturing, satellite components, and now satellite payloads.

Electron remains Rocket Lab’s workhorse. It’s one of the most frequently launched small rockets globally, with 68 successful missions to date. However, what truly sets RKLB apart is its vertical integration. The company designs and builds nearly every aspect of its missions in-house, from solar panels and reaction wheels to full satellite buses.

This enables Rocket Lab to maintain cost control, ensure quality, and execute more quickly than many of its competitors.

A Year of Explosive Performance

RKLB has delivered one of the most impressive runs in the market over the past year. Shares have surged nearly 700% over the last 12 months, fueled by improving fundamentals, strong contract wins, and a growing reputation as a reliable launch and space systems provider. Year-to-date, the stock has risen an impressive 53% and is fresh from making a new all-time high on Tuesday.

Just last month, the company completed its 68th successful Electron launch, just 48 hours after the 67th, marking its fastest turnaround yet from its New Zealand launch complex. Rocket Lab completed four missions in June alone, bringing its year-to-date tally for 2025 to ten launches with a 100% success rate. This reliability is critical as the space economy becomes increasingly essential to both commercial and government interests.

Recent Catalysts Fueling the Rally

A string of recent achievements underpins Rocket Lab’s momentum. Most recently, the company announced it had completed the Critical Design Review (CDR) for the U.S. Space Development Agency’s T2TL-Beta constellation. As the program’s prime contractor, Rocket Lab will deliver 18 satellites for the Department of Defense’s Proliferated Warfighter Space Architecture. An initiative that aims to build a secure, low-latency LEO communications network for U.S. and allied forces.

This milestone clears the way for full-scale production and cements Rocket Lab’s transition from launch services into full-scale satellite manufacturing and national security work.

Peter Beck recently confirmed on CNBC that the company remains on track to debut its Neutron rocket. It’s a reusable, medium-lift vehicle, expected to be operational by the end of this year. If successful, Neutron would enable Rocket Lab to compete directly with SpaceX in the medium-lift launch category and significantly expand its addressable market. In short, if successful, Neutron would catapult RKLB to the next level.

Beck also highlighted the strategic acquisition of GEOST, which brings space-based sensing and payload capabilities into Rocket Lab’s portfolio. This is yet another step toward becoming an end-to-end space solutions provider.

Analyst Sentiment Remains Bullish

Analysts have begun to take note of Rocket Lab’s upward trajectory. Cantor Fitzgerald recently raised its price target to a Street-high $35, citing the company’s strategic execution and growing backlog. Overall, sentiment remains bullish, particularly as the company approaches its first Neutron launch. 

The stock has a Moderate Buy rating based on 12 ratings. However, the consensus price target, which implies a 22% downside potential, raises some concerns regarding the company's current valuation.

One of the Hottest Growth Stories in the Market

Rocket Lab’s meteoric rise is no accident. With strong leadership, accelerating execution, and a growing list of high-profile contracts, the company is transforming from a niche launch firm into a full-fledged aerospace and defense powerhouse.

For investors looking for long-term growth potential in a sector with tailwinds from both government and commercial demand, Rocket Lab remains one of the most compelling and dynamic names in the space.