10 Best Mid Cap Defense Stocks to Buy According to Analysts

7. Rocket Lab USA, Inc. (NASDAQ:RKLB)

Market Cap: $8.90 billion

Share Price Upside Potential: 20.48%

Rocket Lab USA, Inc. (NASDAQ:RKLB) is an end-to-end space company delivering reliable launch services, spacecraft components, spacecraft design services, and related software to support the space economy.  It is also working on several defense contracts.

The US Space Force recently selected the company to compete for the DoD’s highest-priority missions for the National Security Space Launch (NSSL) Phase 3 Lane 1 program. This will be a five-year IDIQ contract with a ceiling of $5.6 billion. Analysts believe this is a big opportunity for Rocket Lab USA, Inc. (NASDAQ:RKLB) to position itself as an important player in national security missions.

In January this year, Rocket Lab USA, Inc. (NASDAQ:RKLB) was picked by Kratos as part of a team to deliver hypersonic test launches for the DoD. The contract has a potential value of $1.45 billion and is aimed at providing a cost-effective bridge between hypersonic ground tests and system-level flight tests.

These latest developments have bolstered investor sentiment around the stock. ClearBridge Small Cap Growth Strategy stated the following regarding Rocket Lab USA, Inc. (NASDAQ:RKLB) in its Q1 2025 investor letter:

“Rocket Lab USA is a manufacturer of spacecraft and satellite components as well as a service provider for satellite launch services, primarily focused today on smaller payloads. With an innovative founder-led management team competing in an enormous market with significant growth in commercial, government and classified applications, we see significant growth potential.”

According to Insider Monkey’s database for Q4 2024, 37 hedge funds held a stake in the company, up from 16 at the end of the third quarter. Wall Street analysts are bullish on Rocket Lab USA, Inc. (NASDAQ:RKLB), with a consensus Buy rating and an average share price potential of 20.48%. It is one of the best mid cap stocks to buy.