Rocket Lab Stock Hits 52-Week High: What's Going On?

Rocket Lab USA Inc RKLB shares are hitting new 52-week highs on Monday, adding to gains of more than 25% over the past week. Here’s what you need to know before Rocket Lab reports third-quarter results this week.

What To Know: Broader markets are trading near all-time highs as the rally in risk assets continues following Donald Trump's election win. Most anticipate a more favorable regulatory environment under Trump.

The private space industry could also benefit under Trump given SpaceX CEO Elon Musk’s close ties to Trump and strong support throughout the campaign. Reuters reported that it’s possible we could see changes to the Federal Aviation Administration’s commercial space office, which oversees private rocket launches.

Growth stocks have also benefited in recent months as the Federal Reserve has embarked on a rate-cutting cycle. The Fed cut interest rates by 0.25% last week, bringing the target fed funds rate to its lowest levels since February 2023. Most expect another 0.25% rate cut at the central bank’s final meeting of the year next month.

See Also: Solar, Renewables Stocks Crash After Trump Win: Should You Buy Now At Cheap Valuations?

Rocket Lab is scheduled to report third-quarter financial results after the market close on Tuesday. Analysts expect the company to report a loss of 11 cents per share and revenue of $102.28 million, according to estimates from Benzinga Pro.

Last quarter, Rocket Lab beat analyst estimates on the top and bottom lines as revenue jumped 71% year-over-year. The company guided for third-quarter revenue of $100 million to $105 million and an adjusted EBITDA loss of $31 million to $33 million. 

Investors will be watching for any updates on the company's medium lift rocket Neutron. Rocket Lab announced that it completed its first successful hot fire of Neutron's Archimedes engine when it reported earnings last quarter. Neutron's first flight is expected sometime in mid-2025.

In the days leading up to earnings, Citigroup analyst Jason Gursky maintained Rocket Lab with a Buy rating and raised the price target from $7 to $13.

RKLB Price Action: Rocket Lab shares were up 11% at $14.99 at the time of publication, according to Benzinga Pro.

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