RKLB - Rocket Lab Stock: Weakness Is Opportunity
2024-06-25 12:30:08 ET
Summary
- When it comes to investing in small companies successfully, investors need to be ready to go through periods where improvements to company fundamentals will yield little to no returns.
- Rocket Lab's stock has declined despite promising developments, including a $515 million government contract and a new deal with Synspective for 10 Electron launches.
- Rocket Lab's pipeline is strengthening with new contracts, and the company's Space Systems business is expected to drive growth.
- Rocket Lab's fundamentals are improving, with revenue expected to accelerate to over $430 million this year and high double-digit growth projected for the next five years, potentially leading to profitability by 2027.
When it comes to investing in small companies successfully, investors need to be ready to go through periods where improvements to company fundamentals will yield little to no returns in the market. This is especially true for small companies that operate in hyper-growth sectors, where investor expectations are often sky-high. As an investor with a focus on small-caps, I have come to terms with this phenomenon, which helps me remain patient with my investments....
Rocket Lab Stock: Weakness Is Opportunity