Small-cap stocks Rocket Lab (RKLB) and IonQ (IONQ) have both posted explosive gains over the last 12 months, catching the attention of growth-focused investors. Yet despite their big rallies, Wall Street analysts remain bullish, maintaining strong buy ratings on these Russell 2000 stocks.
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Nonetheless, RKLB and IONQ represent classic high-risk, high-reward opportunities, appealing to investors with a strong appetite for volatility and long-term disruption. While their sharp rallies reflect massive growth potential, both companies operate in emerging, capital-intensive sectors where success is not guaranteed.
Let’s dive into the details.
Is RKLB a Good Stock to Buy?
Rocket Lab builds and launches small satellite rockets, including its flagship Electron and upcoming reusable Neutron rocket. Over the last 12 months, RKLB stock soared more than 640%. Most recently, RKLB shares gained almost 12% on Thursday after securing a deal with the European Space Agency to launch two satellites for its LEO-PNT test constellation.
Looking ahead, rising global tensions continue to fuel demand for Rocket Lab’s defense and surveillance satellite launches, reinforcing the company’s long-term potential. Its Electron rocket caters to the growing market for small satellite deployments, while the upcoming Neutron rocket, designed for medium-lift missions, positions Rocket Lab to meet the increasing demand for affordable and dependable space access.
Furthermore, analysts remain optimistic. Top-rated analysts at firms like Cantor Fitzgerald and Stifel Nicolaus are bullish on the Neutron rocket, calling its planned launch in the second half of 2025 a critical milestone. They view it as a major step toward Rocket Lab’s broader ambition of becoming a fully integrated space company.
What Is the Target Price for RKLB?
According to TipRanks, RKLB stock has received a Strong Buy consensus rating, with nine Buys and three Holds assigned in the last three months. The average Rocket Lab stock price target is $30.20, suggesting a potential downside of 16.4% from the current level.
It’s worth noting that despite analysts’ bullish ratings, the recent surge in share price has pushed RKLB stock above its average price target, implying a potential downside in the near term.
Is IonQ a Good Stock Buy?
IonQ is a leading quantum computing company focused on trapped-ion technology, delivering its systems through major cloud platforms. Its stock has surged over 470% in the past year, reflecting its standout position in the space.
IonQ is ahead of the curve, having already sold quantum hardware to cloud giants like Amazon’s (AMZN) AWS and Alphabet’s (GOOGL) Google Cloud. The company’s systems offer full qubit connectivity and an industry-best 99.9% two-qubit gate fidelity, which is an essential metric indicating the system’s ability to perform calculations with minimal error. With increasing demand and additional system deployments on the horizon, IonQ is well-positioned for further growth.
Turning to Wall Street, five-star-rated analyst David Williams of Benchmark Co. recently reiterated his Buy rating on IonQ and earlier this month raised his price target to $50. His bullish stance follows IonQ’s announcement to acquire UK-based Oxford Ionics in a $1.075 billion deal. Benchmark analysts believe the acquisition will significantly enhance IonQ’s leadership in trapped-ion quantum computing by integrating Oxford’s advanced technology, expanding its technical edge and global market reach.
What Is IonQ Forecast for 2025?
According to TipRanks, four out of five analysts currently covering IONQ stock have issued Buy recommendations. Meanwhile, the average IonQ share price target of $43 suggests a 4.6% upside from current levels.
