One of the space-related stocks investors have been watching closely in recent months has been Rocket Lab (NASDAQ:RKLB). Indeed, RKLB stock is a relatively new addition to the market, only going public on Aug. 25. Over the past six weeks, Rocket Lab has seen its valuation mostly surge amid bullish sentiment in this space.
However, today’s 11% move higher in RKLB stock is noteworthy. That’s because since hitting a high of more than $20 per share a month ago, shares of RKLB stock have since waned. Today’s move brings RKLB stock well above the $15 per share level, or a 50% premium to its special purpose acquisition company (SPAC) initial public offering (IPO) price from six weeks ago.
As a de-SPAC play, Rocket Lab is one that’s received a lot of love of late. Much of this appears to be due to the company’s Photon spacecraft. Via engineering prowess, Rocket Lab has designed a rocket the company believes will transform the cost-benefit analysis of space travel for the better. This is an innovation-focused company that growth investors like. And on a risk-on day like today, this sort of rise is somewhat expected.
That said, there’s another catalyst that’s driving Rocket Lab’s valuation higher today. Let’s take a look at what investors are watching with this stock.
RKLB Stock Higher on NASA Contract
Yesterday, Rocket Lab announced the company had secured a NASA contract. This contract provides for Rocket Lab to launch a NASA technology demonstration in 2022.
The high-profile Advance Composite Solar Sail System (ACS3) is set to go to orbit aboard Rocket Lab’s Electron vehicle along with other smaller satellites. This launch is a highly anticipated one and marks the continuing of a strong relationship with the government space agency.
Earlier this year, Rocket Lab reported NASA had approved the company’s ESCAPADE mission. This mission to mars on Rocket Lab’s Photon spacecraft is one that investors saw as the catalyst that put RKLB stock on the map for investors.
Indeed, the awarding of another contract furthers this thesis for investors today.
Accordingly, RKLB stock is one that appears to have very strong momentum right now. Investors looking for a near-term momentum play appear to be piling into this stock heavily. Whether RKLB stock will stay in orbit — or fall back to earth — remains to be seen. However, for now, investors seem to like where this stock is headed.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.