Rocket Companies (RKT) Gains As Market Dips: What You Should Know
In the latest trading session, Rocket Companies (RKT) closed at $19.72, marking a +0.15% move from the previous day. This move outpaced the S&P 500's daily loss of 0.04%.
Prior to today's trading, shares of the company had gained 15.21% over the past month. This has outpaced the Business Services sector's gain of 2.71% and the S&P 500's gain of 1.35% in that time.
Investors will be hoping for strength from RKT as it approaches its next earnings release.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.14 per share and revenue of $12.85 billion, which would represent changes of -47.93% and -18.36%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for RKT. These recent revisions tend to reflect the evolving nature of short-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. 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, 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 has moved 13.8% lower. RKT currently has a Zacks Rank of #5 (Strong Sell).
Digging into valuation, RKT currently has a Forward P/E ratio of 9.21. Its industry sports an average Forward P/E of 33.52, so we one might conclude that RKT is trading at a discount comparatively.
Also, we should mention that RKT has a PEG ratio of 0.92. 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. The Technology Services was holding an average PEG ratio of 2.54 at yesterday's closing price.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 225, putting it in the bottom 12% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Click to get this free report
Rocket Companies, Inc. (RKT): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.