Rocket Companies (RKT) Gains As Market Dips: What You Should Know
Rocket Companies (RKT) closed the most recent trading day at $20.16, moving +1.15% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.38%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq lost 0.12%.
Heading into today, shares of the company had lost 10.99% over the past month, lagging the Business Services sector's gain of 0.81% and the S&P 500's gain of 4.12% in that time.
Wall Street will be looking for positivity from RKT as it approaches its next earnings report date.
Any recent changes to analyst estimates for RKT should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. RKT currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, RKT is currently trading at a Forward P/E ratio of 11.53. This valuation marks a discount compared to its industry's average Forward P/E of 31.09.
It is also worth noting that RKT currently has a PEG ratio of 1.15. 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 2.47 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 122, putting it in the top 48% 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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