Why Rocket Lab Stock Is Rocketing Higher This Week

Over the first several days of trading in May, Rocket Lab (RKLB 2.26%) hadn’t given investors much to celebrate. But that changed abruptly when the company reported first-quarter 2026 financial results after the market closed on May 7. That enthusiasm for the launch services stock has persisted this week, and analysts’ positive outlooks on Rocket Lab stock are providing additional fuel for the exuberance.

Investors’ enthusiasm is undeniable, as the stock set a new all-time high yesterday, rising to $133.18. According to data provided by S&P Global Market Intelligence, Rocket Lab stock has risen 25.7% from its close on Friday through the end of yesterday’s market session.

Image source: Getty Images.

Setting new company records is just one factor motivating investors

Maintaining a buy rating, Deutsche Bank (DB 0.41%) raised its price target 64% on Rocket Lab stock to $120 from $73 on Tuesday. The following day, Clear Street initiated coverage on Rocket Lab stock, assigning it a buy rating and a $150 price target.

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NASDAQ: RKLB

Rocket Lab

Today’s Change

(-2.26%) $-2.99

Current Price

$129.56

Key Data Points

Market Cap

$77B

Day’s Range

$128.02 - $130.35

52wk Range

$23.92 - $133.18

Volume

21K

Avg Vol

23M

Gross Margin

33.77%

Last week, Rocket Lab reported surprisingly good financial results. Whereas the consensus among analysts was that the company would report Q1 2026 sales of $189.7 million, Rocket Lab posted revenue of $200.4 million – a record for quarterly sales.

The company set other high-water marks as well: a 38.2% gross margin and a backlog of $2.2 billion.

In Q2 2026, Rocket Lab forecasts revenue of $225 million to $240 million and a gross margin of 33% to 35%.

Should investors shoot for the stars with Rocket Lab?

Trading at more than 108 times sales, Rocket Lab is valued at a steep premium to its five-year average sales multiple of 14.6. Fortunately for those eager to gain exposure to the burgeoning space economy have a variety of other space stocks to choose from.

RKLB-4.55%
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