Russell 2000 companies Rocket Lab (RKLB) and Rigetti Computing (RGTI) have delivered impressive gains over the past year, catching the attention of investors and traders alike. But with their strong performance, the question now is whether these Russell 2000 small-cap stocks still have room to grow or if it’s time to take profits. Remarkably, quantum computing company Rigetti gained 1,700% over the last 12 months, while space company Rocket Lab soared around 88%.
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For context, the Russell 2000 Index tracks 2,000 small-cap U.S. companies, serving as a benchmark for the performance of smaller, growth-oriented stocks.
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.
Looking ahead, rising global tensions are boosting demand for Rocket Lab’s defense and surveillance satellite launches, highlighting the company’s long-term growth potential. Its Electron rocket serves the expanding small-satellite market, while the upcoming Neutron rocket, built for medium-lift missions, positions Rocket Lab to meet the growing need for affordable and reliable access to space.
Turning to Wall Street, analysts remain moderately optimistic about RKLB stock, despite its mixed Q2 results earlier this month. Several analysts have raised their price targets, reflecting confidence in the company’s upcoming Neutron launch, scheduled for late 2025. Analysts see it as a key growth catalyst and a significant step toward Rocket Lab’s goal of becoming a fully integrated space company.
However, more conservative investors may choose to hold off until the Neutron rocket completes its first flight, since the recent rally limits short-term upside in RKLB stock.
What Is the Target Price for RKLB?
According to TipRanks, RKLB stock has received a Moderate Buy consensus rating, with nine Buys and four Holds assigned in the last three months. The average Rocket Lab stock price target is $48.55, suggesting an upside of 1.34% from the current level.
Is RGTI Stock a Good Buy?
Rigetti is an early-stage quantum computing company gaining attention for its cutting-edge technology and strategic government partnerships. The company reported a larger Q2 loss earlier this month, posting a loss of $0.13 per share, below Wall Street’s forecast of $0.05. Despite this, Wall Street remains confident. Several leading analysts have raised their price targets, while others have reaffirmed Buy ratings on the stock.
For instance, Benchmark’s five-star analyst David Williams highlighted milestones such as the scheduled launch of its 100-qubit multi-chiplet QPU and the recently released Cepheus-1 system. According to Williams, these developments bring Rigetti closer to achieving a 1,000+ qubit system with 99.9% fidelity. Notably, in quantum computing, qubits are the basic units of information, and more qubits with low error rates allow computers to solve complex problems.
Williams also pointed out Rigetti’s strengthened balance sheet, with $350 million raised during the period, bringing total cash to $570 million, sufficient to fund ongoing development through commercialization.
What Is the Price Target for RGTI?
According to TipRanks, RGTI stock has received a Strong Buy consensus rating, with seven Buys assigned in the last three months. The average price target for Rigetti Computing is $18.83, suggesting a potential upside of 13.57% from the current level.
Conclusion
Overall, RKLB and RGTI are high-risk, high-reward stocks that may appeal to investors comfortable with volatility and long-term growth potential. Both operate in emerging industries where outcomes remain uncertain; however, upcoming catalysts present significant growth opportunities for investors.