RKLB - Rocket Lab: Ticket To Ride The Space Economy Boom

2024-06-19 23:05:35 ET

Summary

• The Aerospace & defense industry offers long-term gains with anti-cyclical demand, defense innovation, and commercial aerospace tailwinds.
• The space technology market expected to double by 2033, with Rocket Lab positioned as a key player in the emerging industry.
• Rocket Lab reported record revenues, successful missions, backlog, and profitability improvements in Q1 2024 earnings. It is also in a great spot to maintain elevated growth in the years ahead.

Introduction

If there's one industry we discuss a lot, it's aerospace & defense, which has a weighting of slightly more than 20% in my dividend growth portfolio.

Since the pandemic, I have accumulated shares in four major defense contractors, as I expect the mix of anti-cyclical demand, the need for defense innovation, and commercial aerospace tailwinds to make it the perfect industry for long-term gains with a terrific risk/reward profile.

Right now, most of these companies enjoy tailwinds from both elevated global defense needs and the post-pandemic recovery in commercial aerospace....

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