TLDR
- Rocket Lab (RKLB) closed at $53.07 on Nov. 6, up $7.08 or 15.39%
- The stock sits far below its 52-week high of $151.00
- Space and defense names have been hit since the midterm elections
- Rocket Lab guided Q3 sales of $250 million to $265 million
- Adjusted gross margin is targeted at 35% to 37%
Rocket Lab (RKLB) had a strong Friday. The stock closed at $53.07, up $7.08 or 15.39%.
The day’s range ran from $46.51 to $53.10. That means the stock finished right near the top.
About 20.9 million shares traded hands. That is a bit above the average volume of 19.6 million.
The rally comes after a rough stretch. The stock sits far below its 52-week high of $151.00.
The 52-week low is $37.57. So Friday’s close landed well off the bottom of that range.
Rocket Lab now has a market cap of $31.76 billion. Its gross margin stands at 34.11%.
How Rocket Lab Got Here
Earlier this year, the stock climbed on strong business momentum. Excitement around the Space Exploration Technologies IPO added fuel.
That mood flipped after SpaceX went public. Space stocks reversed course and gave back ground.
Defense exposure has not helped either. Companies tied to that industry have seen their valuation multiples shrink a lot.
Then came the midterm elections. Democrats scored big wins, and space and defense stocks sold off again.
Part of the pullback ties to a weak broader market. Valuations for artificial intelligence stocks have been deflating.
Investors also seem uneasy about the political shift. Some worry space firms could face tougher operating conditions as power changes hands.
What the Numbers Need to Show
Rocket Lab’s last quarterly report set the bar for what comes next. The company guided for sales between $250 million and $265 million.
It also targeted a non-GAAP gross margin of 35% to 37%. The current gross margin of 34.11% sits just under that range.
Hitting the top of that margin range could help. So could revenue that beats the high end of the sales target.
Those are the marks the company may need to clear. A solid report could spark a bigger rebound in this market.
Rocket Lab’s Moneyball Superscore stands at 78 out of 100. The stock is up 2.25% over the past year.
