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

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Zacks Equity Research
·2 min read
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In the latest trading session, Rocket Companies (RKT) closed at $19.87, marking a +1.69% move from the previous day. This move outpaced the S&P 500's daily gain of 1.39%. Meanwhile, the Dow gained 0.83%, and the Nasdaq, a tech-heavy index, added 1.97%.

Coming into today, shares of the company had lost 9.95% in the past month. In that same time, the Business Services sector lost 2.47%, while the S&P 500 gained 2.58%.

Investors will be hoping for strength from RKT as it approaches its next earnings release.

Any recent changes to analyst estimates for RKT should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. RKT is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, RKT is currently trading at a Forward P/E ratio of 11.34. Its industry sports an average Forward P/E of 32.74, so we one might conclude that RKT is trading at a discount comparatively.

Meanwhile, RKT's PEG ratio is currently 1.13. 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 2.67 as of yesterday's close.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 176, putting it in the bottom 31% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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