Should You Buy, Hold or Sell Rocket Lab Stock Ahead of Q3 Earnings?

Rocket Lab USA, Inc. RKLB is slated to report third-quarter 2025 results on Nov. 10, 2025, after market close.The Zacks Consensus Estimate for revenues is pegged at $149.8 million, indicating an improvement of 42.9% from the year-ago quarter’s reported figure. The consensus mark for the bottom line is pegged at a loss of five cents per share, implying an improvement from the prior-year quarter’s reported loss of ten cents.Image Source: Zacks Investment ResearchRKLB’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters and missed in three, the average negative surprise being 16.22%.Image Source: Zacks Investment ResearchEarnings WhispersOur proven model predicts an earnings beat for RKLB this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.Rocket Lab has an Earnings ESP of +25.00% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Key Factors to ConsiderHigher revenues generated from growth in the number of launch missions, as well as solid revenue contributions from strong bookings witnessed in the prior quarters, are likely to have bolstered the top line of the Launch Services business segment.Solid growth in spacecraft and satellite manufacturing is likely to have boosted revenue growth for its Space Systems business segment.What is Likely to Have Impacted RKLB’s Bottom Line?Solid revenue contribution from both of its segments is likely to have bolstered Rocket Lab’s overall revenues in the third quarter.Such a strong revenue projection is also expected to have boosted RKLB’s third-quarter earnings growth. However, increased operating costs due to higher spending on the Neutron program, a growing workforce, rising research and development expenses and greater IT-related costs, including enhanced cybersecurity requirements for RKLB’s U.S. Government programs, are likely to have weighed on its operating margin. This, in turn, is anticipated to have negatively affected its overall earnings.Price Performance & ValuationRKLB’s shares have exhibited an upward trend, gaining a notable percentage over the past year. Specifically, the stock soared 332.3% in the time frame, outperforming the Zacks aerospace-defense equipment industry’s growth of 26.3%. It has also outpaced the broader Zacks Aerospace sector’s return of 24% as well as the S&P 500’s gain of 17%.Image Source: Zacks Investment ResearchA similar stellar performance has been delivered by other industry players, such as Kratos Defense & Security Solutions, Inc. KTOS and CurtissWright Corporation CW, whose shares have surged 215.6% and 56.6%, respectively, over the past year.In terms of valuation, RKLB’s forward 12-month price-to-sales (P/S) is 33.39X, a premium to its industry’s average of 9.47X. This suggests that investors will be paying a higher price than the company's expected sales growth compared with its industry’s P/S ratio.Image Source: Zacks Investment ResearchHowever, its industry peers are currently trading at a discount compared with RKLB. While the forward 12-month price/earnings multiple for KTOS is 9.97, the same for CW is 6.11.Investment ThesisAccording to an April 2024 report by the World Economic Forum, the global space economy is projected to reach $1.8 trillion by 2035, fueled by the rising adoption of satellite-based and rocket-enabled technologies. This promising outlook supports the long-term growth potential of space-focused companies like RKLB.However, RKLB continues to face certain challenges that investors should consider before taking a position in the stock. A major concern is its elevated operating expenses, largely stemming from ongoing investments in new product development and technological enhancements. These high costs often offset the benefits of robust revenue growth, resulting in recurring quarterly losses.Should You Buy RKLB Before Nov. 10?RKLB is less likely to disappoint with its third-quarter 2025 results, taking into account its favorable Zacks Rank, solid revenue growth expectations and positive Earnings ESP. However, considering its premium valuation compared with its industry, investors interested in RKLB should remain on the sidelines before this earnings release.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Curtiss-Wright Corporation (CW): Free Stock Analysis Report Kratos Defense & Security Solutions, Inc. (KTOS): Free Stock Analysis Report Rocket Lab Corporation (RKLB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks