Space Economy Set for Strong Growth Cycle
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 06 2026
0mins
Should l Buy RKLB?
Source: Fool
- Optimistic Market Outlook: According to McKinsey, the global space economy is projected to reach $1.8 trillion by 2035, indicating strong growth potential that attracts investor interest.
- Rocket Lab's Competitiveness: Rocket Lab has achieved 81 launches in the U.S., making it the second-largest launch company after SpaceX, and its upcoming Neutron rocket aims to carry payloads 40 times larger than its current Electron rocket, enhancing profit margins and market competitiveness.
- AST SpaceMobile's Strategic Partnerships: AST SpaceMobile has secured significant agreements with telecom giants like AT&T and Verizon to provide broadband coverage through its satellite network, with revenue expected to grow from $57 million in 2025 to $1.94 billion by 2028, showcasing its market potential.
- Divergent Profitability Expectations: While both companies are currently unprofitable, analysts project Rocket Lab will achieve profitability by 2027, whereas AST SpaceMobile is expected to reach it by 2028, reflecting differing market perceptions of their future developments.
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Analyst Views on RKLB
Wall Street analysts forecast RKLB stock price to rise
11 Analyst Rating
7 Buy
4 Hold
0 Sell
Moderate Buy
Current: 68.370
Low
63.00
Averages
86.89
High
120.00
Current: 68.370
Low
63.00
Averages
86.89
High
120.00
About RKLB
Rocket Lab Corporation is an end-to-end space company. The Company designs and manufactures small and medium-class rockets, spacecraft and spacecraft components, and related software and services to support the space economy. The Company delivers reliable launch services, satellite manufacture, spacecraft design services, spacecraft components, spacecraft manufacturing, and other spacecraft and on-orbit management solutions that make it easier to access space. Its Launch Services segment provides launch and launch-related services to customers on a dedicated mission or ride-share basis. Its Space Systems segment comprises the design and manufacture of spacecraft components and spacecraft program management services, space data applications, and mission operations. Its space systems solutions are the building blocks for spacecraft, which include composite structures, reaction wheels, star trackers, solar solutions, radios, separation systems, and command and control spacecraft software.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Cost Ratio Advantage: VBK offers a lower expense ratio compared to IJT, appealing to cost-conscious investors, while IJT's higher dividend yield may attract income-focused investors.
- Sector Allocation Differences: VBK leans more heavily into industrials (23%) and technology (21%), whereas IJT maintains a more balanced exposure across multiple sectors, reflecting different investment strategies and risk preferences.
- Historical Performance Comparison: IJT exhibited shallower drawdowns during the 2022 bear market, outperforming VBK, which may attract risk-averse investors, especially in times of increased market volatility.
- Small-Cap Market Outlook: Small-cap stocks have underperformed in recent years, but with the Russell 2000 index surging, the market may be shifting towards small caps, making both VBK and IJT low-cost investment options for those optimistic about small-cap performance.
See More
Comparison of Small-Cap ETFs: VBK vs IJT
- Cost Comparison: The Vanguard Small-Cap Growth ETF (VBK) charges a lower expense ratio of 0.05% compared to iShares S&P Small-Cap 600 Growth ETF (IJT) at 0.18%, making it more appealing for cost-conscious investors and enhancing its competitive edge in the market.
- Yield and Risk: While IJT offers a higher dividend yield of 0.88% compared to VBK's 0.53%, IJT's maximum drawdown over the past five years is 29.2%, significantly lower than VBK's 38.4%, positioning IJT as a better option for risk-averse investors.
- Asset Allocation: IJT holds 356 small-cap stocks with significant allocations in industrials (21%), technology (18%), and healthcare (15%), whereas VBK has 551 stocks with a heavier tilt towards industrials (23%) and technology (21%), highlighting their differences in sector exposure.
- Market Performance: Small-cap stocks have underperformed in recent years, but with the Russell 2000 index rebounding, both VBK and IJT could benefit from renewed investor interest in small caps, particularly as VBK's low-cost structure may attract more inflows.
See More
Opportunities in Industrial Stocks for the Next Decade
- TSMC's Market Leadership: Taiwan Semiconductor Manufacturing (TSM) serves as the backbone of the global advanced chip market, with a remarkable 377% revenue growth over the past decade and plans to invest over $100 billion in the U.S. to meet surging AI chip demand, thereby solidifying its market dominance.
- Rocket Lab's Growth Potential: Rocket Lab (RKLB) has seen its revenue soar nearly 1,000% in the past five years, with its Electron rocket completing 21 launches in 2025; despite delays in the Neutron rocket's development pushed to 2026, the company is poised to capture significant market share in the rapidly expanding space economy.
- Lockheed Martin's Steady Revenue: Lockheed Martin (LMT) reported a record backlog of $194 billion, benefiting from long-term defense contracts; while its revenue growth may be modest, its reliable earnings and shareholder return strategies make it a solid long-term investment choice.
- Investment Outlook for Industrial Stocks: With rising geopolitical tensions and increasing demand for advanced technologies, investor interest in industrial stocks is growing, particularly in the AI and space economy sectors, presenting abundant opportunities for investors over the next decade.
See More
Investment Opportunities Amid Market Volatility
- Rocket Lab's Growth Potential: Rocket Lab's stock has dropped 30%, yet its vertically integrated model and comprehensive space solutions provide immense growth potential across industries like defense, telecommunications, and space tourism, despite its next-gen rocket launch being delayed again until Q4 this year, which may impact operational performance.
- Revenue and Backlog Growth: In 2025, Rocket Lab's revenue and backlog grew by 38% and 73%, respectively, while its gross margin improved by over 7 percentage points; however, with a current market cap of $40 billion, investors should be cautious of the risks associated with its 62 times sales valuation.
- Badger Meter's Steady Performance: Badger Meter's stock has fallen 43%, but with 85% of its sales driven by replacement demand and net income and free cash flow growing by 18% and 30% annually over the past decade, it demonstrates strong growth potential in the water management solutions sector.
- Rapid Growth of Software Business: Although Badger Meter's price-to-free cash flow ratio has risen from the low 20s in 2019 to above 50 in 2024, its emerging software business has seen annual growth of 28% over the past five years, presenting investors with an opportunity at a more reasonable 26 times free cash flow valuation.
See More
Firefly's Launch of Lockheed Martin into Space: Comparing Stock Performance with SpaceX and Rocket Lab.
- Successful Launch: Firefly Aerospace's Alpha Flight 7 was successfully launched into space, marking a significant achievement for the company.
- Stock Surge: Following the successful launch, Firefly Aerospace's stock experienced a notable increase early Thursday.
See More
Investment Opportunities After Market Shakeup
- Alphabet AI Investment Returns: Alphabet plans to increase capital expenditures to between $175 billion and $185 billion by 2026, nearly doubling last year's spending, and despite a nearly 14% drop in stock price since February, its cloud business achieved a 48% revenue growth in Q4 with a 150% increase in operating income, showcasing the potential and competitiveness of its AI investments.
- Rocket Lab Market Volatility: The inaugural flight of Rocket Lab's Neutron rocket has been postponed until the end of the year, causing a decline in stock price; however, the market's fluctuating views on this stock suggest that investors should focus on its growth potential following the success of its smaller Electron rocket, with the space launch market expected to grow nearly 15% annually.
- Netflix Competitive Advantage: Netflix's stock price is about 10% lower than before its December interest in acquiring Warner Bros. Discovery, and while facing pressure from competitor Paramount Skydance, Netflix may benefit from its rival's massive acquisition commitment, indicating its relative strength in the streaming market.
- Timing for Investment: Amid market turbulence, investors should focus on the long-term potential of these companies, particularly Alphabet and Netflix's strong performances in their respective markets, which may provide good buying opportunities.
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