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Rocket Companies (RKT) Stock Jumps 8.4%: Will It Continue to Soar?
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Rocket Companies (RKT - Free Report) shares soared 8.4% in the last trading session to close at $20.35. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11% loss over the past four weeks.
Shares of Rocket Companies moved sharply higher yesterday after CEO Varun Krishna said the company is on track to deliver its highest mortgage loan production in four years, signaling a recovery in mortgage demand. The upbeat commentary lifted investor sentiments. Earlier in January, President Donald Trump announced plans for large-scale purchases of U.S. mortgage bonds aimed at lowering mortgage rates and easing housing affordability. As a result, reduced borrowing costs are expected to support refinancing and home-purchase activity, driving higher origination volumes for RKT.
This company is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of +125%. Revenues are expected to be $2.24 billion, up 88.5% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Rocket Companies, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on RKT going forward to see if this recent jump can turn into more strength down the road.
Rocket Companies belongs to the Zacks Financial - Mortgage & Related Services industry. Another stock from the same industry, loanDepot (LDI - Free Report) , closed the last trading session 1.4% lower at $2.16. Over the past month, LDI has returned -1.4%.
loanDepot's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.04. Compared to the company's year-ago EPS, this represents a change of +82.6%. loanDepot currently boasts a Zacks Rank of #3 (Hold).
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Rocket Companies (RKT) Stock Jumps 8.4%: Will It Continue to Soar?
Rocket Companies (RKT - Free Report) shares soared 8.4% in the last trading session to close at $20.35. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11% loss over the past four weeks.
Shares of Rocket Companies moved sharply higher yesterday after CEO Varun Krishna said the company is on track to deliver its highest mortgage loan production in four years, signaling a recovery in mortgage demand. The upbeat commentary lifted investor sentiments. Earlier in January, President Donald Trump announced plans for large-scale purchases of U.S. mortgage bonds aimed at lowering mortgage rates and easing housing affordability. As a result, reduced borrowing costs are expected to support refinancing and home-purchase activity, driving higher origination volumes for RKT.
This company is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of +125%. Revenues are expected to be $2.24 billion, up 88.5% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Rocket Companies, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on RKT going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Rocket Companies belongs to the Zacks Financial - Mortgage & Related Services industry. Another stock from the same industry, loanDepot (LDI - Free Report) , closed the last trading session 1.4% lower at $2.16. Over the past month, LDI has returned -1.4%.
loanDepot's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.04. Compared to the company's year-ago EPS, this represents a change of +82.6%. loanDepot currently boasts a Zacks Rank of #3 (Hold).