Down Nearly 65% From Its 52-Week High, Has Rocket Lab Stock Become a Bargain Buy?

Rocket Lab (NASDAQ:RKLB) stock has been declining sharply in recent months. Around the time Space Exploration Technologies Corp went public, there has been less excitement (and money) to go around for space stocks, and Rocket Lab appears to have felt that, significantly. In late May, just before the SpaceX IPO, it hit a high of $151. On Monday, it closed at just under $54 -- a decline of 64% from that peak.

At $34 billion in market cap, it's nowhere near as big as SpaceX, which is worth around $2 trillion today. But it still has tremendous growth potential in space, and it's been posting some incredible numbers. Could this struggling rocket stock be a bargain buy right now?

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Rocket Lab has been growing fast, and the best is still to come

Rocket Lab makes money not only from launching rockets but also from building satellites and spacecraft. It's a business that can benefit from the overall growth of the space economy. When it last reported earnings in August, it posted record numbers yet again, as revenue of $234 million was up an impressive 62% year over year.

It wasn't all that long ago that the business wasn't even generating that much annually. Back in 2022, its top line totaled $211 million. Meanwhile, over the trailing 12 months, it has generated $769 million in total revenue.

And yet, there are still tremendous opportunities ahead as the company's Electron rocket can carry payloads up to 300 kg, but its larger Neutron rocket is sure to unlock even more potential -- it can carry up to 13,000 kg. And that rises to 15,000 kg for expendable missions. Neutron's initial launch has been delayed until next year, and that has soured investors who were hoping to see it this year. But it's still a huge potential catalyst for the business down the road.

The stock comes with risk, but it may prove to be a steal of a deal in the long run

Rocket Lab has been growing fast, and its opportunities are promising, but investors shouldn't overlook the risk, either. The business remains unprofitable, and spending is likely to be high, given the nature of its operations.

For investors who are, however, comfortable with taking on some risk and volatility, the stock may be worth buying right now, while the market looks to be looking past Rocket Lab. When Neutron finally launches, that could once again spark excitement in the stock and send it soaring.

David Jagielski, 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.