Rocket Lab (RKLB) shares have fallen from about $151 in the spring to under $60 in October, after the company pushed the first launch of its Neutron rocket to 2027 over a propellant dome defect that posed a risk of catastrophic failure on the launch pad. The author argues the delay is not the worst-case scenario and that Neutron remains crucial for competing with SpaceX in medium-lift payloads. Backlog rose to $2.36 billion as of Q2 2026, up 137% year over year, and management expects about 45% of it to be recognized as revenue within the next year. At a market cap of about $35 billion, the stock trades at roughly 27 times Wall Street's estimated next-year revenue of about $1.3 billion. The author views the current price as the most attractive level for the stock in months, though he does not consider the valuation jaw-droppingly low.
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