Prediction: Rocket Lab Stock Is a Buy Before Feb. 26

Small rocket specializer Rocket Lab (NASDAQ: RKLB) reports fourth-quarter net aft adjacent of trading connected Thursday, Feb. 26. A batch of investors look acrophobic of the report, and Rocket Lab banal has sold disconnected astir 20% successful the period earlier earnings.

I disagree. In fact, I deliberation there's a beauteous bully accidental Rocket Lab banal will...well, rocket aft the institution reports earnings. And present I'll archer you why.

Where to put $1,000 close now? Our expert squad conscionable revealed what they judge are the 10 champion stocks to bargain close now, erstwhile you articulation Stock Advisor. See the stocks »

My sentiment connected Rocket Lab has small to bash with valuation. When I look astatine Rocket Lab banal trading for much than a 62 price-to-sales ratio -- and infinity times the profits it isn't yet earning -- I cannot telephone Rocket Lab banal a "buy" astatine its existent stock terms of $70 and change.

I'll beryllium blunt: Even astatine 20% off, I judge Rocket Lab banal is inactive overvalued astatine this price.

I don't needfully cognize that Rocket Lab is going to "beat earnings," either. Analysts polled by S&P Global Market Intelligence foretell Rocket Lab volition suffer $0.10 successful Q4 2025, the aforesaid losses it reported successful 2024's Q4. This seems unlikely, fixed that these aforesaid analysts are forecasting Rocket Lab to turn its income astir 35% twelvemonth implicit year, and fixed that we know Rocket Lab launched astir doubly arsenic galore missions successful Q4 2025 arsenic it did successful Q4 2024.

More rocket launches, much revenue, and greater accumulation standard would look to connote less losses for Rocket Lab and frankincense an betterment successful "earnings."

A cheaper banal terms combined with amended income and net are some bully reasons to expect Rocket Lab banal to spell up aft net this week. But they're not the main reason I foretell Rocket Lab banal volition spell up.

Last year, if you recall, Rocket Lab publically promised to motorboat its caller Neutron reusable rocket by the extremity of 2025 -- past changed its mind. At past report, absorption was inactive hemming and hawing implicit whether to denote a Q1 2026 oregon Q2 2026 launch. I would beryllium shocked if Rocket Lab does not settee this question for america erstwhile reporting net this week and acceptable a people motorboat day for Neutron.

If I had to wager, I'd astir apt thin toward expecting a Q2 motorboat date. And if I'm close astir that, Rocket Lab whitethorn disappoint immoderate investors erstwhile it tells america it volition instrumentality a fewer much months to get Neutron disconnected the ground. That said, if there's 1 happening the banal marketplace truly hates, it's uncertainty.