Why Rocket Lab Stock Took Flight on Tuesday

Rocket Lab (RKLB +8.35%) stock took flight on Tuesday, climbing as much as 10%. As of 2:51 p.m. ET, the stock was still up 8.4%.

The catalyst that sent the rocket specialist higher was the latest news about its Neutron rocket.

Image source: The Motley Fool.

To infinity and beyond

In a post on X today, Rocket Lab announced that the Neutron rocket’s second stage — which is responsible for delivering payloads once in orbit — and the accompanying thrust module had departed the factory for the Virginia launch site.

It’s a beautiful day to set sail with the next pieces of Neutron flight hardware to Launch Complex 3. Earlier today we sent Neutron’s Stage 2 and Thrust Module out of the Neutron Factory and onto a barge for transport through Chesapeake Bay to Wallops Island in Virginia. Once it arrives, the Thrust Module will go straight onto the launch mount at LC-3 for check outs and the beginning of wider systems demonstrations including integrated fluids tests and module-to-launch-mount interface checkouts. With no strongback on the launch mount by design, Neutron’s Thrust Module is the rocket’s only physical interface to the launch pad, which this upcoming test campaign enables us to test early before the entire vehicle comes together.

— Rocket Lab (@RocketLab) October 27, 2026

In the wake of this announcement, Cantor Fitzgerald analyst Andres Sheppard reiterated his overweight (buy) rating and $122 price target. That suggests potential gains for investors of 127% compared to Monday’s closing price. The analyst expects a Neutron launch in the second quarter of 2027, giving investors the opportunity to profit from the recent sell-off.

Earlier this month, Rocket Lab announced that it would delay Neutron’s inaugural launch. The flight, originally scheduled for year-end, was delayed until 2027 after the company discovered a defect in the propellant dome.

RKLB – Rocket Lab

$58.32+$4.50 (+8.35%)

NASDAQ · As of 2:59 PM ET 10/27/26

Rocket Lab stock has been beset by volatility, exacerbated by the recent IPO of Space Exploration Technologies (SPCX +2.08%) — aka SpaceX. Ahead of the company’s public debut, Rocket Lab shares took flight, gaining 115% during the first five months of 2026, but have since plunged more than 61% (as of this writing).

Given the boom-or-bust nature of spaceflight, volatility is here to stay, especially since we’re still in the early stages of the “space race.” At 44 times sales, Rocket Lab stock isn’t cheap, but it is less expensive than SpaceX, which sells for 61 times sales. Moreover, as the space race matures, Rocket Lab is poised to shoot for the stars.

Danny Vena, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Rocket Lab. The Motley Fool has a disclosure policy.

Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.