This space stock continues to rise to new all-time highs. Should you buy it here?

Space stocks are names that often capture investors’ imaginations – there’s something romantic about exploring beyond Earth’s atmosphere. For practical investors, the innovative nature of companies moving into space can produce some compelling returns – especially if the company can win government contracts and ensure a steady stream of profits.

One name of interest in space stocks right now is Rocket Lab (RKLB), which has completed more than a dozen successful launches this year and just signed a new deal with the Japan Aerospace Exploration Agency.

RKLB stock has taken off like a rocket in recent days, rising 47% in the last month alone. Is it a good investment now?

Rocket Lab, based in Long Beach, California, provides launch services and conducts space launches primarily in the United States, Canada and Japan. The company also offers spacecraft, satellite components and in-orbit management to function as an end-to-end space company.

The company, with a market cap of $33 billion, offers so-called launch-on-demand services, including three launch pads and 132 annual launch slots. “Choose your orbit, your rocket, your launch plan and your launch location,” the company promises on its website. “You’re in control.”

The company has conducted 73 launches with its two-stage, partially reusable Electron launch vehicle, deploying 239 satellites around Earth. A medium-lift vehicle called Neutron is being developed that can carry larger payloads.

Shares have soared this year, up 183% year-to-date (YTD), far outpacing the Nasdaq Composite ($NASX), which is up just 18% in 2025.

While the company isn’t making a profit yet, its price-to-sales ratio of 52.5 is high – investors are paying $52.50 for every dollar of sales the company generates. Wall Street obviously has high hopes for Rocket Lab stock.

Rocket Lab’s second-quarter profit came on revenue of $145 million, a whopping 36% increase year-over-year. And while the company increased its gross profit to $46.4 million from $27.6 million a year ago, operating expenses rose to $106 million from $70.4 million. Overall, Rocket Lab reported a loss of $59.6 million in the quarter, up from $43.2 million a year ago. The loss of $0.13 per share was worse than the $0.11 EPS loss predicted by analysts.

The company completed its $330 million acquisition of Geost, a payload manufacturer whose technology is used in U.S. national security missions. CEO Sir Peter Beck said the company is “strongly positioned to meet the needs of defense initiatives such as the Golden Dome with end-to-end mission solutions for launch, spacecraft – and now payloads. We are confident that our strategic investments will open up new growth opportunities that will lead us to long-term profitability, particularly as we anticipate further potential growth in the third quarter Aim for a record quarter.”

Third-quarter guidance calls for Rocket Lab to report revenue between $145 million and $155 million and an adjusted EBITDA loss of between $21 million and $23 million. A year ago, Rocket Lab had third-quarter revenue of $104.8 million and a loss of $51.9 million.

Analysts are generally bullish on RKLB stock, but with one caveat: The share price has risen so much over the last year that the current share price is just above analysts’ highest price target. RKLB stock has a 52-week range of $9.98 to $73.50 and is currently trading extremely close to the top of that range.

Fourteen analysts currently covering the stock rate it positively, with seven rating it a “strong buy” and one rating it a “moderate buy.” The remaining six analysts recommend holding. Analysts have an average price target of $54.18 for RKLB stock, with the high target set at just $68.

RKLB stock is a compelling play for the space industry. Instead of building luxury projects like Virgin Galactic (SPCE), Rocket Lab is actually creating the infrastructure that companies and governments need to get to orbit. However, the company’s high valuation makes buying it a risk, and any slowdown in the company’s revenue growth will likely cause the stock price to fall back to earth.

At the time of publication, Patrick Sanders did not hold (either directly or indirectly) any positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com