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

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In the latest trading session, Rocket Companies (RKT - Free Report) closed at $22.57, marking a +1.9% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.18%.

Coming into today, shares of the company had lost 1.42% in the past month. In that same time, the Business Services sector gained 3.49%, while the S&P 500 gained 6.99%.

RKT will be looking to display strength as it nears its next earnings release, which is expected to be May 5, 2021.

RKT's full-year Zacks Consensus Estimates are calling for earnings of $2.62 per share and revenue of $13.16 billion. These results would represent year-over-year changes of -36.25% and -16.38%, respectively.

Investors should also note any recent changes to analyst estimates for RKT. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 remained stagnant. RKT is holding a Zacks Rank of #1 (Strong Buy) right now.

Digging into valuation, RKT currently has a Forward P/E ratio of 8.47. For comparison, its industry has an average Forward P/E of 31.96, which means RKT is trading at a discount to the group.

Also, we should mention that RKT has a PEG ratio of 0.85. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Technology Services stocks are, on average, holding a PEG ratio of 2.93 based on yesterday's closing prices.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 159, putting it in the bottom 38% 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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