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Rocket Companies (RKT) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research
·3-min read

In the latest trading session, Rocket Companies (RKT) closed at $14.17, marking a +1.29% move from the previous day. This move outpaced the S&P 500's daily gain of 0.92%. Meanwhile, the Dow gained 0.51%, and the Nasdaq, a tech-heavy index, added 0.54%.

Coming into today, shares of the company had lost 12.01% in the past month. In that same time, the Business Services sector lost 15.86%, while the S&P 500 lost 0.85%.

Rocket Companies will be looking to display strength as it nears its next earnings release. In that report, analysts expect Rocket Companies to post earnings of $0.38 per share. This would mark a year-over-year decline of 66.67%. Our most recent consensus estimate is calling for quarterly revenue of $2.59 billion, down 44.8% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Rocket Companies. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.99% lower. Rocket Companies is holding a Zacks Rank of #4 (Sell) right now.

Valuation is also important, so investors should note that Rocket Companies has a Forward P/E ratio of 9.1 right now. This valuation marks a discount compared to its industry's average Forward P/E of 21.25.

Meanwhile, RKT's PEG ratio is currently 0.91. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Technology Services was holding an average PEG ratio of 1.58 at yesterday's closing price.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 192, putting it in the bottom 25% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow RKT in the coming trading sessions, be sure to utilize Zacks.com.


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