Rocket Lab (NASDAQ: RKLB) may be on the verge of yet another significant surge after delivering an exceptional 12-month run that saw its stock soar from around $6 to nearly $49.
I’ve resisted the temptation to use clichés like “blast off” or “shooting to the moon,” but let’s be honest—those phrases perfectly capture what this innovative space company has achieved. With over 70 successful launches under its belt, Rocket Lab stands as the second most active commercial launch provider, trailing only SpaceX.
This morning, I increased my exposure to RKLB from 4% to 7% within the Active Opps portfolio at Inside Edge Capital, as I believe the upside potential remains strong.
Rocket Lab positions itself as “an end-to-end space company delivering dependable launch services, complete spacecraft design and manufacturing, satellite components, flight software, and more.” The company benefits from several powerful tailwinds that could fuel continued growth:
On the weekly chart, RKLB has maintained an impressive uptrend since September 2024, rallying from $6 to $49. Volume analysis reveals six weeks of trading above the 50-period average of 94 million shares, with four of those weeks closing in positive territory. The last three weeks displayed indecision with tight ranges, but this week, the stock is showing renewed momentum.
The percentage distance from the 50-period moving average has ranged between 90% and 140%, which may seem elevated—but late 2024 through early 2025 sustained gaps exceeding 200%, highlighting the stock’s ability to maintain strong trends during bullish phases.
Looking at revenue and earnings projections, Rocket Lab isn’t expected to turn a GAAP or non-GAAP profit until 2027. However, the key focus for growth investors is top-line expansion. Revenue has climbed from around $200 million and is projected to approach $900 million by 2026, showcasing robust demand for its services.
Zooming into the daily chart, the consolidation phase seen on the weekly chart tested support near the 50-day moving average, held firm, and has started trending higher. I initially entered RKLB at around $37 with a 4% allocation.
Today, I increased that position to 7.1%, anticipating that a daily close above $50 with volume exceeding 25 million shares could trigger the next major breakout.
That said, I’m keeping a tight stop around $46 for this additional position. If the breakout fails, I’ll scale back this incremental stake to protect profits on the core holding.
Currently, the Active Opps portfolio holds 7.12% in RKLB, and I may slightly adjust that allocation after publishing this update.
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