Jim Cramer Points to Rocket Lab as “Most Visible” Among Rocket Ship Companies

Rocket Lab Corporation (NASDAQ:RKLB) is one of the stocks Jim Cramer was focused on. Cramer said it is the “most visible” one among rocket ship companies. He commented:

“What [are] examples of what speculation means?… There are many others that fit the pattern, and they’re all rocket ships. Oh, then there are the literal rocket ship companies. Rocket Lab, RKLB, is the most visible.”

Stock market data showing an upward trajectory. Photo by Burak The Weekender on Pexels

Rocket Lab Corporation (NASDAQ:RKLB) provides launch services, spacecraft manufacturing, and satellite management solutions, including its Electron small launch vehicle and developing Neutron for larger missions. The company also supplies spacecraft components and subsystems. During the September 9 episode, Cramer mentioned the stock and commented:

“The stock ran out of steam in July, and since then, it’s gradually come off its highs, mostly trading sideways for the past two months. This… consolidation… I know that Bob likes very much. Of course, Lang (chartist Bob Lang) points out the Rocket Lab’s still up roughly 220% from its April lows. It’s a rally that’s mainly occurred on heavy volume. This is one of those stocks that’s beloved by younger retail investors, although Lang thinks it’s starting to attract interest from big institutional money managers too.

He sees the stock’s recent pullback to the 50-day moving average… as another chance to buy the dip. And I know many of you probably think dip? But in this… speculative world, that is a dip. When you look at the action over the summer, Rocket Lab pulled back hard, then rebounded dramatically on high volume a few weeks ago before cooling off again.

When you look at the on-balance volume, again… and also the moving average convergence divergence… You get some really good buy interest. It is due. This is a $47 stock that could move above $60 in short order. I like that move. And you know what? If the Fed gets aggressive cutting interest rates, all these speculative names are just going to roar higher. So… let’s think about Rocket Lab. That one looks very right.”

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Disclosure: None. This article is originally published at Insider Monkey.