Why Rocket Lab Skyrocketed 21.9% Higher in April

April showers may have generally doused the spirits of investors, as the S&P 500 (SNPINDEX: ^GSPC)
nudged about 0.7% lower last month, but not all stocks suffered. Launch services provider Rocket Lab USA (NASDAQ: RKLB), for example, blasted 21.9% higher, according to data provided by S&P Global Market Intelligence.

Besides both the United States Department of Defense and the U.S. Air Force selecting Rocket Lab for participation in two noteworthy programs, the United Kingdom's Ministry of Defense awarded Rocket Lab a contract that motivated investors to bid Rocket Lab stock higher.

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Catalysts fueling Rocket Lab stock's rise

Investors received a double dip of positive news in mid-April, when Rocket Lab announced that both the U.S. Air Force and the U.K. Ministry of Defense had selected the company as a contender for contracts in multibillion-dollar programs.

Rocket Lab may bid on contracts available through the U.S. Air Force's Enterprise-Wide Agile Acquisition Contract, a $46 billion program that has several goals, including the rapid development of innovative technologies. Similarly, through its Hypersonic Technologies & Capability Development Framework, the U.K. Ministry of Defense may award Rocket Lab contracts to develop hypersonic capabilities.

Of interest for both programs is Rocket Lab's Hypersonic Accelerator Suborbital Test Electron (HASTE) launch vehicle, a variation of the small orbital rocket Electron.

Addressing the HASTE vehicle, Rocket Lab's CEO Peter Beck said:

The ability to contribute toward the collective security of the United States and the United Kingdom across both of these important programs is a proud moment for the HASTE team, and a demonstration of Rocket Lab's commitment to lead from the front when it comes to innovative and unique solutions for hypersonic technology development.

Later in the month, investors learned that defense contractor Kratos had chosen Rocket Lab to provide its HASTE launch vehicle for a test flight in support of the Multi-Service Advanced Capability Hypersonic Test Bed (MACH-TB) 2.0 program, a five-year, $1.45 billion contract to develop hypersonic technologies.

Rocket Lab stock closed nearly 8% higher the day after the company reported the partnership with Kratos.

Is now the time to hitch a ride with Rocket Lab?

While the selections Rocket Lab received regarding its HASTE vehicle may not immediately translate to growth on its income statement, they certainly have the potential to do so in the future. The development of hypersonic capabilities is a top concern for governments looking to retain military advantages over adversaries.

Rocket Lab has distinguished itself as a leader in launch services, as its Electron rocket is the second-most frequently launched vehicle annually, and it'd be unsurprising if it further asserts its prowess as a leader in the hypersonic capabilities that the U.S. and U.K. governments are exploring in the aforementioned programs.

With shares of Rocket Lab down about 10% year to date as of this writing, growth investors looking for space stock exposure would be smart to take a closer look at Rocket Lab stock.

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Scott Levine has no position in any of the stocks mentioned. The Motley Fool recommends Rocket Lab USA. The Motley Fool has a disclosure policy.