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Rocket Companies (RKT) Gains As Market Dips: What You Should Know

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Rocket Companies (RKT - Free Report) closed the most recent trading day at $14.98, moving +1.7% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.06%. Meanwhile, the Dow gained 0.59%, and the Nasdaq, a tech-heavy index, lost 0.3%.

Prior to today's trading, shares of the company had lost 7.3% over the past month. This has was narrower than the Business Services sector's loss of 8.62% and lagged the S&P 500's gain of 5.76% in that time.

Wall Street will be looking for positivity from Rocket Companies as it approaches its next earnings report date. The company is expected to report EPS of $0.38, down 66.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.6 billion, down 44.75% from the year-ago period.

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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Rocket Companies is currently a Zacks Rank #3 (Hold).

Investors should also note Rocket Companies's current valuation metrics, including its Forward P/E ratio of 9.52. This valuation marks a discount compared to its industry's average Forward P/E of 23.33.

Investors should also note that RKT has a PEG ratio of 0.95 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. RKT's industry had an average PEG ratio of 1.68 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 186, which puts it in the bottom 28% 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.

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


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