Rocket Lab Just Snagged Major Defence Deals — And Investors Are Paying Attention

A few weeks ago, we reported on the new Rocket Lab contracts with the US Air Force and the UK. These contracts highlight the firm’s growth in the Aerospace industry. The folks at Yahoo Finance have been able to show how these contracts have been able to boost the California-based space firm’s stocks.

New Contracts Reveal The Growth Of Rocket Lab, Reeling In Investors

While the stocks of Rocket Lab over the past few months have seen a flat 1.5% movement, the firm’s new contracts are shaking things up. Following the announcement of these two contracts, the California-based space firm has seen a significant rise in its stock on the tradable market.

Yahoo Finance also reports that the announcements of both contracts have a “major influence on stabilising the stock’s movement.” This highlights the strengths of the space firm being displayed in its recent operational advancements.

Both contracts might play important roles in the growth of Rocket Lab, as the firm has projected. With contracts like this, the aerospace firm can be sure to see impressive growth, hence strengthening its position in the national security sector of not just the US but the region’s allies alike.

Various financial analysts anticipate this growth as it will drive public investment in the firm’s stocks. Another major factor to drive this growth, aside from the new contract, is the increase in launches from Rocket Lab for its various clients.

While this might sound like good news for those looking to invest in the firm’s stocks, there are some factors to consider. These factors, such as execution risks and competition, can hinder the growth of the California-based space firm.

Rocket Lab’s Unique Strategy Might Secure Its Growth In The US Space Industry

By turning its attention to “medium-class launches and cost-efficiency projects like the Neutron rocket and the Flatellite satellite”, Rocket Lab hopes to keep growing within the US space industry. This is the strategy that the firm seems to be sticking to ensure its growth, and so far it has seemed to work in its favour.

According to Yahoo Finance, “Over the past year, Rocket Lab’s total shareholder return, including share price and reinvested dividends, surged to a very large percentage, highlighting significant long-term capital appreciation.” This growth is impressive, especially in comparison with the US Aerospace and Defence industry and the broader US space market.

To keep up with this growth, we might see Rocket Lab put in more effort in executing contracts from its various clients. Also, we expect to see content efforts from the firm’s competition, hence threatening this impressive growth.