In the latest trading session, Rocket Companies (RKT) closed at $12.26, marking a +0.41% move from the previous day. This move outpaced the S&P 500’s daily loss of 1.9%. Elsewhere, the Dow lost 1.43%, while the tech-heavy Nasdaq added 0.06%.
– Zacks
Coming into today, shares of the company had lost 11.91% in the past month. In that same time, the Business Services sector lost 4.29%, while the S&P 500 lost 3.39%.
Rocket Companies will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.37, down 67.54% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.65 billion, down 43.61% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Rocket Companies. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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. The Zacks Consensus EPS estimate has moved 0.17% higher within the past month. Rocket Companies is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Rocket Companies has a Forward P/E ratio of 8.13 right now. This valuation marks a discount compared to its industry’s average Forward P/E of 23.76.
Investors should also note that RKT has a PEG ratio of 0.81 right now. 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. The Technology Services industry currently had an average PEG ratio of 1.86 as of yesterday’s close.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 152, putting it in the bottom 41% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Rocket Companies, Inc. (RKT): Free Stock Analysis Report
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