Rocket Companies (RKT) Gains But Lags Market: What You Should Know

·2-min read

Rocket Companies (RKT) closed the most recent trading day at $20.14, moving +0.55% from the previous trading session. This change lagged the S&P 500's 0.58% gain on the day.

Heading into today, shares of the company had gained 14.72% over the past month, outpacing the Business Services sector's gain of 3.24% and the S&P 500's gain of 2.17% in that time.

Wall Street will be looking for positivity from RKT as it approaches its next earnings report date.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.14 per share and revenue of $12.85 billion, which would represent changes of -47.93% and -18.36%, respectively, from the prior year.

Any recent changes to analyst estimates for RKT should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 13.8% lower. RKT is holding a Zacks Rank of #5 (Strong Sell) right now.

Valuation is also important, so investors should note that RKT has a Forward P/E ratio of 9.37 right now. This represents a discount compared to its industry's average Forward P/E of 33.8.

Investors should also note that RKT has a PEG ratio of 0.94 right now. 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 2.7 at yesterday's closing price.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 225, putting it in the bottom 12% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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