Key Takeaways:
Rocket Lab USA Inc. (RKLB) stock surged 34 percent on Friday to a record high after a positive investor reaction to its latest earnings report and a critical test for its Neutron rocket.
"Enter on a pullback near $105, with a potential move toward $133 by mid-2026," Doug Busch, senior technical analyst at Barron’s Investor Circle, said in a note, remaining bullish on the stock above $90.
The move, which occurred on the stock's largest daily volume in the past year, pushed shares above a double-bottom with handle pivot at $93.20. The stock was trading around $110 on Monday after eclipsing the $100 mark for the first time since going public in late 2020. The rally was also supported by news of the company's Neutron rocket completing a critical test, according to MSN.
The breakout to all-time highs suggests renewed investor confidence in the space infrastructure company, which has now advanced in four of the last six weeks. The stock has repeatedly found support at its 200-day simple moving average, signaling a strong long-term uptrend that analysts believe could provide further gains.
The current base began forming after the stock found support at its 200-day simple moving average on November 21 and March 30. The latest base also successfully retested a prior cup-with-handle breakout pivot at $65.28, which was originally established on December 19 when the stock climbed 18% on roughly double its average daily volume. Rocket Lab has also performed very well against the ARK Space & Defense Innovation ETF (ARKX) over the past year.
The strong performance of Rocket Lab comes as interest builds for publicly-traded space companies. While some investors await a potential initial public offering from SpaceX, others are looking at names like Rocket Lab and AST SpaceMobile (ASTS). AST SpaceMobile, which aims to build a space-based cellular broadband network, has seen its stock rise 126% over the past year but has fallen 26% in the last three months.
The post-earnings surge for Rocket Lab reinforces its position as a key player in the growing commercial space economy. Investors will be watching to see if the stock can hold its recent gains and continue its upward trend toward analyst targets.
This article is for informational purposes only and does not constitute investment advice.
