Dividend Expert Reveals His Biggest Income Secrets... Free of Charge

Marc Lichtenfeld --Author of the best-selling book Get Rich With Dividends -- is giving away his Ultimate Dividend Package...

Are Rocket Lab's Shares Undervalued?

Mark O'Donnell
August 12, 2022

In comparison with perceived market-leader SpaceX, Rocket Lab USA's (NASDAQ:RKLB) valuation is underwhelming. Given its $2.5 billion market capitalization, Rocket Lab is eclipsed by the $127 billion SpaceX. However, analysts believe that assessing Rocket Lab's true worth warrants a look beyond its immediate financial results and into the pieces it is adding to the game.

Looking beyond valuations, Rocket Lab had been operating at a loss for at least the last 12 months. Despite this, it saw its shares grow 26% over the last month. It hit $5.55 on Aug. 4 when its launched a U.S. spy satellite in New Zealand atop its Electron booster. It reached another high on Aug. 8 at $5.60 before closing the day at $5.45.

From a more macro point of view, Rocket Lab’s stock price is traveling in line with other SPAC listings, down 55% for the year-to-date. Which opens the question as to why it is not more in line with defense stocks, such as iShares U.S. Aerospace & Defense ETF (up 1.73% YTD), which appear to be benefiting from the increase in US defense spending. 

NASDAQ:RKLB 1D, with iShares U.S. Aerospace & Defense ETF 

 

Bearish Second-Quarter Forecast 

Rocket Lab is set to announce its results for the quarter ended June 30 on Aug. 11. It expects EBITDA loss to be between $3.5 million and $5.5 million and for its revenue to be somewhere within the $51 million to $54 million range. The company is expected to record normalized loss per share of $0.06.

In the first quarter of 2022, the company recorded adjusted loss of roughly $8.0 million and a 124% year-over-year hike in revenue to $40.7 million. Despite the bearish expectations for the upcoming results, it can be observed that the loss Rocket Lab has been reporting becomes less than the previous period. The company may not be far from breaking even at the rate it is going. 

 

Retaining Confidence 

The Aug. 4/5 launch for the U.S. National Reconnaissance Office managed to boost confidence for the company, enough to lift its stocks to $5.55. The mission marked the 146th satellite deployment from the Electron booster to date. But as noted above, Rocket Lab may not have experienced the full impact of the increase in US defense spending.

Additionally, the company is currently developing Neutron, a reusable booster planned to be 40 meters high and to have a 7 meter diameter. It is a medium-lift rocket designed for the deployment of mega-constellations, human spaceflight and deep space missions. The first flight of Neutron is planned for 2024.

The reusable aspect of the Neutron could be a make or break product for Rocket Lab. If successful, the reusable Neutron can carry out more launches and generate more revenue over a definite period. It can eventually lead to better gross profits as it will help reduce production costs.

In this respect Rocket Lab may offer an asymmetric risk/reward at current valuation due to potential profitability gains, both through diversification and with attempts to reuse the Electron booster. 

Continue Reading...

Most Popular
September 30, 2022

$1000 Invested In This Stock 10 Years Ago Would Be Worth $9,000 Today

Amazon.com (NASDAQ:AMZN) has outperformed the market over the past 10 years by 14.89% on an annualized basis producing an average annual return of 24.4%. Currently, Amazon.com has a market capitalization of $1.18 trillion.

September 30, 2022

Will This Be the Worst U.S. Crisis Ever? - Ad

Wealthy 73-year-old U.S. entrepreneur retreats to one of his three European properties to issue serious warning (and 4 recommendations) for Americans. "It falls on someone like me to warn you clearly. I'm too rich to care about money--and too old to care what anyone thinks."

September 30, 2022

MetLife Whale Trades Spotted

Someone with a lot of money to spend has taken a bearish stance on MetLife (NYSE:MET). And retail traders should know. We noticed this today when the big position showed up on publicly available options history that we track here at Benzinga.

September 29, 2022

NVIDIA Whale Trades For September 29

Someone with a lot of money to spend has taken a bearish stance on NVIDIA (NASDAQ:NVDA). And retail traders should know. We noticed this today when the big position showed up on publicly available options history that we track here at Benzinga.

September 30, 2022

Will This Battery Replace Lithium-Ion Batteries? - Ad

A new battery breakthrough is about to hit the market... And when it's rolled out, lithium-ion batteries could become obsolete! Gas-powered vehicles, they could be driven off the roads by 2030! This new battery... well, it's so small it can fit on the tip of your finger.

September 30, 2022

The One Ticker Retirement Plan - Ad

Over the Shoulder Demo Now Available - Market Wizard Larry Benedict crushed the market in 2022. But he hasn't done it with a "traditional" method... For a limited time, he's sharing a free over-the-shoulder "demo" of his strategy in action. It takes less than 10 seconds...

September 30, 2022

Big Tech Behemoths Silently Embracing Crypto & DeFi

Crypto and decentralized finance is not nearly as obscure as many traditional investors will have you believe. On the contrary, DeFi and token technology has been embraced by some of the world’s most innovative companies, if not silently.

September 30, 2022

Crypto Expert Reveals Next Trade - Ad

A potential $544 trillion opportunity has just emerged... One that could "reshape the financial system." That's why I'm about to invest in a section of this massive opportunity..."on air". And you have the chance to look over my shoulder and see how to get in on the action.

September 28, 2022

Opioid Use Drops Among Patients With Access To Medical Cannabis, Study Shows

A new study conducted by researchers at Emerald Coast Research and Florida State University College of Medicine found that “opioid use rates have dropped as North American patients gain

September 29, 2022

Check Out What Whales Are Doing With AMT

Someone with a lot of money to spend has taken a bearish stance on American Tower (NYSE:AMT). And retail traders should know. We noticed this today when the big position showed up on publicly available options history that we track here at Benzinga.

September 30, 2022

How to Invest in These "Hidden" Tech Companies - Ad

There's a huge technology investing boom happening right underneath your nose... If you know the secret to finding and investing in these hidden tech companies, you could see yourself become incredibly wealthy.

September 30, 2022

Mark Zuckerberg's Meta No Longer Among Top 10 Most-Valuable Companies: Who Overtook The Tech Giant?

Meta Platforms Inc. (NASDAQ: META) is no longer among the top 10 most valuable companies in the world as its market cap fell to $366.61 billion with shares of the company closing 3.67% lower on Thursday.

September 30, 2022

Biden to Replace US Dollar?! - Ad

The first was Roosevelt confiscating private gold in 1934. The second was Nixon abandoning the gold standard in 1971. Now, Biden's plan could pave the way for "retiring" the US dollar. Your dollars could soon be confiscated -- or made worthless.

September 29, 2022

10 Information Technology Stocks Whale Activity In Today's Session

This whale alert can help traders discover the next big trading opportunities. Whales are entities with large sums of money and we track their transactions here at Benzinga on our options activity scanner.

September 29, 2022

Cannabis Chart Of The Week: How Illiquid Are Cannabis Companies?

Investors are rightfully concerned about cannabis company liquidity in the face of a constricting capital market. To dig into this, we compared adjusted cash balances to current loan and lease obligations.

September 30, 2022

How Randell Turns $250 Into $1,500 Each Day - Ad

On the training, you will learn about the... "Window Of Opportunity - 7 Ways To Make Money With Crypto Even If You Are Brand New" plus a bonus 8th "Instant Money Loophole" strategy you can start today.

September 28, 2022

Bitcoin, Ethereum, Dogecoin Rise: Analyst Sees Crypto Bounce 'Lasting A Little Longer'

Major coins traded higher Wednesday evening as the global cryptocurrency market cap rose 0.9% to $941.55 billion at 8:11 p.m. EDT.

September 30, 2022

How to Buy the Hottest Cryptos at a Discount - Ad

For the opportunity to build the kind of monumental wealth that early Bitcoin investors have created... You need to explore a sector of the crypto world that almost no one has ever heard of -- a small group of new, under the radar digital currencies that could soon burst out of the digital shadows.

September 30, 2022

Elon Musk Texts Reveal Frustration: 'Fixing Twitter By Chatting With Parag Won't Work'

A dump of text messages featuring Elon Musk’s interactions with Twitter Inc. (NYSE: TWTR) founder Jack Dorsey and its CEO Parag Agrawal and a host of other big

September 30, 2022

5 Analysts Have This to Say About Charles River

Within the last quarter, Charles River (NYSE:CRL) has observed the following analyst ratings:

September 30, 2022

The Small Biotech Scaring Big Pharma - Ad

While everyone else has been focused on crypto and pot stocks, we've been focused where no one else was looking: the biotech sector. One tiny biotech invented a breakthrough Leukemia treatment...that makes this small biotech our top takeover target this month.

September 28, 2022

Why Bitcoin- And Ethereum-Related Stocks Exploded Higher Wednesday

Shares of crypto-related stocks, including Bit Digital Inc (NASDAQ: BTBT), Coinbase Global Inc (NASDAQ: COIN) and Riot Blockchain Inc (NASDAQ:

September 30, 2022

Sell These Stocks by October 16th - Ad

If you own funds from Fidelity, iShares, or Franklin Tempelton, you may have a ticking time bomb in your portfolio. Read this urgent briefing to see why this could set your retirement back ten years!

September 30, 2022

Expert Ratings for Tilray Brands

Within the last quarter, Tilray Brands (NASDAQ:TLRY) has observed the following analyst ratings:

September 30, 2022

25 Stocks to Sell Now -- No Matter What - Ad

What makes these stocks so toxic? To be truthful, it's their popularity. These are Wall Street darlings... Companies that have been praised by analysts and investors alike. Yet every single one of these companies could drop 50% in value. Blindsiding millions of investors... Can you afford to be holding a stock like that?

September 30, 2022

10 Consumer Discretionary Stocks With Whale Alerts In Today's Session

This whale alert can help traders discover the next big trading opportunities. Whales are entities with large sums of money and we track their transactions here at Benzinga on our options activity scanner.

September 28, 2022

Seth Rogen Talks Pot, Pottery, Positive Projects And Now He's Launching A Houseplant Raffle

In a Zoom interview with Vogue, Seth Rogen sat “spinning a just-rolled joint through his fingers.” He talked about raffling off some of his handmade vases to make room in his closet for more.

September 30, 2022

[HOT] Goldman's "Ace of Diamonds" Trade... - Ad

Goldman Sachs just made a "Milestone Trade" - a trade that has the potential to rewrite economic history... and even spark a currency revolution. I found a way to piggyback Goldman's landmark trade... Meaning you have a chance to turn every $1 into $83...

September 28, 2022

Expert Ratings for Magna International

Magna International (NYSE:MGA) has observed the following analyst ratings within the last quarter:

September 30, 2022

Check Out What Whales Are Doing With GOLD

Someone with a lot of money to spend has taken a bullish stance on Barrick Gold (NYSE:GOLD). And retail traders should know. We noticed this today when the big position showed up on publicly available options history that we track here at Benzinga.

September 30, 2022

Musk, Dalio and Cuban Are Loading Up on this One Coin - Ad

Mark Cuban proclaimed this coin "will dwarf Bitcoin." And Elon Musk made sure it was one of the only three coins he owns. It's called the Next Gen Coin... As this presentation explains, this coin has the ability to "power the rails of global finance"... a $100 trillion industry.

Most Recent
September 30, 2022

BREAKING: Trump was Right About China - Ad

September 30, 2022

MetLife Whale Trades Spotted

September 30, 2022

Write this number down: 0001139685 - Ad

September 30, 2022

Recap: Circor Intl Q2 Earnings

September 30, 2022

Legal Crypto Loophole - Ad

September 30, 2022

"Prepare for Five Years of Famine" - Ad

September 30, 2022

Is This Stock a Better Buy Than Rivian? - Ad

Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.

Copyright 2020 activatrade.ca
Privacy Policy | Terms of Service