Rocket Lab: With A Rosy Outlook Ahead, I'm Waiting For A Discount To Buy (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• Rocket Lab's impressive backlog growth and improving revenue quality explain the stock's rising growth expectations and multiple expansion.
• The Trump administration's pro-space stance is likely to lead to increased space funding, and Rocket Lab is well positioned and ready to service increased demand.
• Rocket Lab's Neutron rocket presents meaningful gross profit expansion opportunities as it provides a cost-competitive alternative to SpaceX's Falcon 9 in servicing the growing demand from low-earth orbit satellite launches.
• Despite a rich valuation with a 3-yr forward PE over 100x, on a EV/serviceable addressable market perspective, the stock trades more reasonably.
• The technicals are bullish but offer no discount entry for the buys. I would ideally like to see a correction, perhaps from a short-term execution hiccup to initiate buy positions.

Read the full article here.