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Is Rocket Companies (RKT) Stock Undervalued Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Rocket Companies (RKT - Free Report) is a stock many investors are watching right now. RKT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
We should also highlight that RKT has a P/B ratio of 4.01. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 11.07. RKT's P/B has been as high as 10.47 and as low as 3.64, with a median of 5.01, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. RKT has a P/S ratio of 1.92. This compares to its industry's average P/S of 3.73.
Finally, investors should note that RKT has a P/CF ratio of 71.45. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. RKT's current P/CF looks attractive when compared to its industry's average P/CF of 105.70. Over the past year, RKT's P/CF has been as high as 303.82 and as low as 5.12, with a median of 74.65.
Value investors will likely look at more than just these metrics, but the above data helps show that Rocket Companies is likely undervalued currently. And when considering the strength of its earnings outlook, RKT sticks out at as one of the market's strongest value stocks.
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Is Rocket Companies (RKT) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Rocket Companies (RKT - Free Report) is a stock many investors are watching right now. RKT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
We should also highlight that RKT has a P/B ratio of 4.01. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 11.07. RKT's P/B has been as high as 10.47 and as low as 3.64, with a median of 5.01, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. RKT has a P/S ratio of 1.92. This compares to its industry's average P/S of 3.73.
Finally, investors should note that RKT has a P/CF ratio of 71.45. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. RKT's current P/CF looks attractive when compared to its industry's average P/CF of 105.70. Over the past year, RKT's P/CF has been as high as 303.82 and as low as 5.12, with a median of 74.65.
Value investors will likely look at more than just these metrics, but the above data helps show that Rocket Companies is likely undervalued currently. And when considering the strength of its earnings outlook, RKT sticks out at as one of the market's strongest value stocks.