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

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In the latest trading session, Rocket Companies (RKT - Free Report) closed at $9.60, marking a +0.52% move from the previous day. This move lagged the S&P 500's daily gain of 1.12%. At the same time, the Dow added 1.01%, and the tech-heavy Nasdaq lost 0.08%.

Heading into today, shares of the company had lost 6.83% over the past month, lagging the Business Services sector's gain of 5.67% and the S&P 500's gain of 4.63% in that time.

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 $0.19 per share. This would mark a year-over-year decline of 78.65%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.37 billion, down 48.38% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.10 per share and revenue of $9.44 billion, which would represent changes of -51.33% and -27.19%, respectively, from the prior year.

Any recent changes to analyst estimates for Rocket Companies should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 5.86% lower within the past month. Rocket Companies is currently sporting a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Rocket Companies is currently trading at a Forward P/E ratio of 8.71. This represents a discount compared to its industry's average Forward P/E of 20.86.

Also, we should mention that RKT has a PEG ratio of 0.87. 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. RKT's industry had an average PEG ratio of 2.17 as of yesterday's close.

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 165, which puts it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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