Rocket Companies (RKT) Stock Sinks As Market Gains: What You Should Know
Rocket Companies (RKT) closed at $9.89 in the latest trading session, marking a -1.69% move from the prior day. This change lagged the S&P 500's daily gain of 0.43%. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, lost 0.01%.
Heading into today, shares of the company had lost 15.11% over the past month, lagging the Business Services sector's gain of 5.92% and the S&P 500's gain of 3.69% 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 $0.21, down 76.4% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.39 billion, down 47.76% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.15 per share and revenue of $9.66 billion. These totals would mark changes of -49.12% and -25.48%, respectively, from last year.
Any recent changes to analyst estimates for Rocket Companies should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Rocket Companies currently has a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, Rocket Companies is holding a Forward P/E ratio of 8.75. Its industry sports an average Forward P/E of 22.04, so we one might conclude that Rocket Companies is trading at a discount comparatively.
Also, we should mention that RKT has a PEG ratio of 0.87. 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. Technology Services stocks are, on average, holding a PEG ratio of 2.11 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 175, putting it in the bottom 31% 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Rocket Companies, Inc. (RKT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
